Paying off Apple Card Installments early?
Apple has a deal whereby most electronics purchased in the store using the AppleCard grants you 12 months interest free payments. They automatically setup the monthly amounts. (pretty sweet deal if you are buying iphones, etc)
They also give you the ability to pay off the installment balance early; the only stipulation is you have to pay off the balance of the card first.
"Wait... did you just say you can pay off the balance as long as you pay off the balance?"
So the really oddball thing about this installment plan on the AppleCard is it doesn't appear on your statement balance. They created a separate line item for the installment balance amount. So right now my CARD balance says $0.00 but my INSTALLMENT balance says $704.68.
Right... so I'm at a loss for how to track this in YNAB.
If I were to pay extra towards my INSTALLMENT balance YNAB is going to see my paying money towards a $0 debt credit card as creating a negative balance. It's a rarely seen thing, but YNAB sees negative balances for credit in such a way that it actually alters your 'To Be Budgeted' amount. Result: if I pay $100 towards my INSTALLMENT using payment from Checking to AppleCard, my ToBeBudgeted will actually go up by $100. Which isn't what I want.
So TLDR; How would you go about tracking the INSTALLMENT balance on an AppleCard?
(that doesn't break YNAB)
I've considered a couple options....
- Adding a 'fake' purchase on the AppleCard for the balance of the installment will have an adverse effect on my ability to see the 'real' card balance.
- Creating a new Account called AppleCardInstallments. This is making the most sense but I'm not exactly sure how best to track the payments and budget between the two. My hunch is I would need to manually alter the payment to Apple in my checking account to the Installment.
When you make payments, can you distinguish where you'd like your payment to apply (that is, Installment vs. Revolving Credit)? If so, perhaps a Tracking account just for this short-term installment debt would be a good option. You could continue using your AppleCard normally and track installment payments off-budget.