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?

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  • 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!

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