Paying down Credit Cards (Include Interest In Goals)
I noticed you can setup a "Goal" to pay off your credit cards which is great.
Say you have $1,000 and you want to pay it off in 12 months that comes out to $83.33 a month.
Here is my issue with this. It does not take into account interest. Would it be possible to add a way to include the interest rate on our cards and to take that into account when creating a goal to pay off a card? If you have 10% interest the $83.33 will not cover the entire amount in 12 months. You would need to pay $87.92.
I know, I could figure it out myself and bump the amount up if I wanted too. Also I would probably round it up to $90.00 but not everyone will do that.
Hi VoltaicShock !
There isn't a way to enter the interest rate for your credit card, but YNAB will automatically adjust your goal once the interest hits your account. So, if your goal requires you to budget $83.33 to pay it off in time, once the interest is entered and raises the balance on your card, the goal will change and tell you the new balance you need to budget to stay on track.
Try entering your interest charge in your account and see how your goal changes. :)
If you still have questions, don't hesitate to let me know!
Not totally relevant to your Q - but just in case your paying off multiple credit cards (or anyone coming into this thread is)....
There are a couple of decent "snowball" payment calculators out there that will do debt pay off calculation a bit more dynamically than YNAB currently can (i.e. I have $500 / m to pay off, across these 5 balances, what's the best way to utilise it).
They'll both calculate % interest rates too in their breakdown.
May or may not be useful!