Interest in pay off debt goal

On YNAB when I ask it to give me a goal on my Visa it doesn’t factor in interest. Is there a way to add a APR so it gives me a true amount to hit my target pay off goal date?

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  • There is not, what you could do is ever couple of months adjust the balance this will take in to account the interest. I know a bit of a pain. The other thing that you can do is take your amount due and multiply by about 17%, this should put you a bit over as as the amount it paid off the amount of interest accruing is less. 

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  • Bit of a left field answer.

    If you are carrying any debt the interest you are paying becomes a true expense - you have to pay to carry the balance. 

    If you have an interest category with a funding goal, the sum you fund each debt category is your pay down with the interest  charged logged against the interest category to service the debt (and let YNAB do its thing so you are paying it)

    As the balance goes down so does the True expense.

    If you follow this route your projection will be more accurate.

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      • MrsBabs
      • Mrsbabs
      • 2 yrs ago
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      • Reported - view

      Beige Case (1939d61da8b9) This is basically what I do.  I budget for the interest I'm paying, which adds it to payment I make every month and thus, my goal is only to keep paying down on the principal.  

      The other thing I'm doing right now that seems to be really helping to move the needle, is I pay everything that is "available for payment" on the last day of the month and make the minimum (or the planned debt payment) on the normal payment date.  This may sound weird, but it's been moving the needle for me.  Basically, it allows me to pay the interest and any charges (that are fully budgeted for) in the month they occur and then I add to it my minimum payment AND any reduction amount for the debt I'm targeting. This means debt is NOT growing ever and I'm paying a little down on everything because the minimum is eating into the principal because the interest is budgeted for.

      It's the mental math that is working for me -- So, I thought I'd share.

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  • Sir Wade , consider using undebt.it to plan your debt reduction. YNAB will help you control your spending and to make cash available to direct toward the debt; Undebt.it will help you optimize your approach to reducing it. It's a free site and has useful tools.

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  • Sir Wade There isn't a way to add in the APR, but your goal will adjust as interest is added. If your original goal is to pay off $100 in 5 months, YNAB will tell you that $20 needs to be budgeted towards that category each month. If you add $25 in interest, making the new balance $125, YNAB will adjust to show that $25 is now needed each month instead. :)

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