Amex Plan It, best way to handle in budget.

So I decided to make a large purchase and finance it through Amex Plan It feature. Basically you create a structured payment plan for a particular purchase with Amex. The credit card balance will be reflecting the amount owed minus the payments as they are made. 

However when I go to forward in my budget, this balance doesn't appear to show up under the Credit card when I look forward. I would think since this is basically a loan, the balance will reflect on the credit card as it is payed off.

What is the best way to address this new debt in YNAB?

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  • The category in your budget is a payment category. It represents the money you have set aside in your budget to make your payments on the credit card. I assume since you financed the purchase that you did not have the money to pay for it outright in the purchase category, so that money would not get moved to the payment category.

    Therefore you will need to budget money to your payment category to cover the future payments on this purchase.

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      • Mae P
      • Coral_Admiral.10
      • 1 mth ago
      • Reported - view

      nolesrule Yep. I did an Amex Plan It last year. Each month I added the monthly "principal" amount to the budget column and entered the associated fee separately. 

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  • What about budgeting the money under credit card payments? Or will that mess things up?

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      • nolesrule
      • YNAB4 Evangelist
      • nolesrule
      • 1 mth ago
      • Reported - view

      Gold Ink If you didn't have the money in the category when you made the purchase, that's what you'll do if you budget the money for the payment in future months.

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  • In the months between now and the end of the payment plan, you'll need to budget to the AMEX Payment category to narrow the gap. (Paid-in-full status has a Payment Available that covers the entire account balance.)

    Set a Pay Off Balance by Date goal if you need help with the math. Note the calculated values assume you can budget to the category in the target month. If you cannot do that, set the target to sometime in the previous month.

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  • Last piece is that you’ll want to categorize the monthly fee to “interest and fees.” 

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