Interest on Line of Credit
I'm just wondering if I'm doing this correctly. I make regular minimum payments of $101.25 to my line of credit, and have added the LoC to YNAB so I can track it. My credit union takes interest out of each payment directly so I've set up recurring payments of $101.25 to the LoC and then transferred the interest amount back out to my "Interest/fees" category so my accounts both balance.
Also, I make the same payment every month but my credit union takes a different amount out for interest each month, so I guess I'll have to manually adjust the "Interest/fees" amount each month?
Hi Justin !
How you set that up looks right, just don't forget to budget for the interest in your Interest & Fees category and change the amount for the actual amount your bank charges each month. :)
We also have a Help Doc on handling interest, just in case you want to take a look!Reply