Contrary to the adage, "a picture is __not__ worth 1000 words", usually. At the very least, you should __tell__ us what all the formulas are. Even better, use the XL2BB add-in to copy-and-paste the range A1:E8 into your posting. See my example below.
We might __guess__ that the formulas in E2:E6 are of the form =B2, and the formula in E8 is =SUM(E2:E7). That would create the circular reference in B2.
BTW, the correct syntax for your formula in B2 is:
=IF(
AND(C2>2, E8>0), -2,
0)
"&" is __not__ the "and" operator in Excel. And do not put double-quotes around numbers; "0" is text.
Be that as it may, although I am not enamored to your design overall, the following would correct both design problems.
Formulas:
B3: =IF(AND(C2>2,
SUM($E$2:E2)>0), -2, 0)
C3: =C2+B3
E3: =B3
E9: =SUM(E2:E8)
Copy B3:E3 into B4:E7
(With XL2BB, we can see the formulas by selecting each cell.)
The key is to calculate the balance of the loan separately in column B, instead of relying on the balance that is calculated in E9.