Tracking cc debt and loan

I know YNAB is against tracking CC you don’t or loans intend to use anymore . I just want to hear how some of y’all track interest and extra debt payment (snowflakes ) when you have all of the minimums budgeted and trying to attack the debt snowball ? Do you have a catergory  for interest and snowflakes (extra Payment’s) after all obligations are met ? 

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  • The extra payments are different depending on if the credit cards are on budget or not. If they are on budget set up as credit cards, all payments have to go into the payment category regardless of whether it's extra or not. If the cards are off budget, then you could have a separate category for minimums and snowflake payments and then each payment would be entered as a split transaction.

    Interest I would only set up a category for if the cards are on budget. If they are off budget and you are just paying down the balances then interest isn't relevant to your budget, just what you're paying is.

    If you're snowballing and not using your cards anymore, undebt.it is a really good tool for tracking balances and interest. Then the only thing you worry about in YNAB is what you're paying. The two systems work well when used together.

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      • Thatgrayboi
      • Tomato_Viper.9
      • 2 mths ago
      • Reported - view

      Tobias Thanks and I just took a brief moment to look at undebt.it and it looks awesome . So if I’m going to use undebt.it , then it would be pointless for me to put my credit cards and loans on YNAB right ? Pretty much I would leave it up to UNDEBT.ITand I would just enter my payments onto YNAB ?

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      • Tobias
      • Toviathan
      • 2 mths ago
      • 1
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      Thatgrayboi That's how I would do it. All of the balance tracking would be in undebtit. You would just have the category for payments in YNAB. For me it would just seem like duplicating effort to have the accounts listed in multiple places.

      Like 1
      • Thatgrayboi
      • Tomato_Viper.9
      • 2 mths ago
      • Reported - view

      Tobias Gotcha !! I do see UNDEBT.it has a YNAB integration as well . But I will keep it the way , we just mentioned about . Thanks again 😃

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  • If the cc or loan still has a balance you are paying off, but you are not using it, I would have it as a tracking account. That way interest is just a transaction, and the payment (minimum+snowball amount) is a transfer to the tracking account with a category of CC Payment. You can also have one category for the minimum & one for the snowball amount.

    Like 1
      • Thatgrayboi
      • Tomato_Viper.9
      • 2 mths ago
      • Reported - view

      adriana01 thanks a lot !! I think I will go this route and use them as a tracking account and just have a payment category and snowball category. 

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  • Cards that are on budget have a built in category for their payment. Otherwise, you need to create a category for that payment. If you have several debts that are not on budget, you can combine their payments in a single category, it you can have a category per card if you find that easier.

    I wouldn't bother with any tracking accounts. (No upkeep or reconciliation.) Your statement gives the remaining balance.

    Like 1
      • adriana01
      • adriana01
      • 2 mths ago
      • Reported - view

      dakinemaui I love that there are now 3 completely different viable opinions on how to track CC's that are being paid down :) 

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      • dakinemaui
      • dakinemaui
      • 2 mths ago
      • 1
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      adriana01 one size and all that, right? 🙃

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      • Thatgrayboi
      • Tomato_Viper.9
      • 2 mths ago
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      dakinemaui so you recommend me not to have a tracking account ?? 

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      • dakinemaui
      • dakinemaui
      • 2 mths ago
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      Thatgrayboi I wouldn't simply because they are typically more effort. If you want that balance in YNAB, however, that is the sole purpose of a tracking account -- as long as you are willing to put in the maintenance effort. (Import can help with this, but sometimes creates it's own set of problems. YMMV.)

      Personally, I'm lazy, so I would merely look at the statement if I ever needed the balance.

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  • Great question, Thatgrayboi ! There are a few approaches mentioned here that may work for you. Let us know which one you decide on!

    I did want to include this article with two methods on Tracking Loans. You are right—we're big fans of simplicity, and fewer moving parts is better and makes your budget easier to manage.

    To pay down your debt, all you really need to do is budget for the payment as outlined in method 1. I know the allure of tracking all that data can be strong, but it requires a bit more effort too—if that's the case, try method 2. 😉

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