Simplest way to record LOC payment

Hi all,

I'm obsessing on how to record an LOC payment. I have an automatic transfer from chequing to LOC every 2 weeks. It's a blended payment of principal and interest.

So, the transfer of $250 goes from chequing to LOC and I have it set up as a scheduled transfer. This links and clears correctly with my import from chequing.

When it comes into the LOC, it's recorded as a payment of $140 and a charge directly to interest of $110 (and will slightly change with each payment as the principal increases and interest decreases). YNAB shows a transfer in of $250, but the bank imports a payment of $140. 

Am I better to just leave the LOC on manual import and adjust the amounts every 2 weeks?

For my budget, do I budget $140 every 2 weeks for LOC payments and $110 for interest? I had set up $500 a month for LOC payments, but that's not really correct, is it?

Thanks so much. I just want it to be the least amount of work possible because I know that will be more sustainable for me.


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  • Hi Couch Cat !

    Is the interest charge listed as a separate transaction or does that $110 just seem to disappear (since the full payment doesn't import)? Are you actively using the LOC or are you budgeting to pay off an older balance? 

    If you budget $140 towards the LOC and $110 towards interest, you'd then need to enter a transaction for $110 to account for the interest in that account and then enter the payment.

    My car loan imported in a similar way. I set it up as a Tracking account and entered a manual adjustment to account for the interest (so, full $250 inflow for the payment then $110 outflow for interest). 

    You can use either method, but I find manual entry to be much easier in situations like this. :)

  • Don’t record it as a transfer. 

    Have a recurring outflow in the budget account for $250, and let the inflow import as whatever the inflow is in the LOC. The LOC should be a tracking account anyway, so the transactions not being linked via a transfer doesn’t matter. 

     This is actually a situation in which I wouldn’t do it manually. You don’t need to and it will be more efficient not to. 

      • WordTenor
      • I'm the oldest and the wittiest.
      • WordTenor
      • 10 mths ago
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      • Reported - view

      And I wouldn’t be me if I failed to suggest that tracking an installment loan is possibly a waste of your time anyway...but if you insist on tracking it, that’s how to do it. 

      Like 1
  • I want to track it for motivation to pay it off. Right now, it's an on budget account and so YNAB is treating it like a credit card.

    Should I change it to a tracking account?

      • nolesrule
      • YNAB4 Evangelist
      • nolesrule
      • 10 mths ago
      • Reported - view

      Couch Cat Debt accounts that you do not spend from should not be budget accounts.

      • Couch Cat
      • Lavender_Violin.3
      • 10 mths ago
      • Reported - view

      nolesrule Thanks!

      I'll switch it to a tracking account and see how the next transaction goes through.


      Thanks for your help everyone!

  • Okay,  changed the LOC to a tracking account. It was a little fussy until I recategorized the payments, but all is balanced. And holy cow, did my Days of Buffering number ever improve! (from -133 to 1). Not that it makes a difference, but I somehow felt approval.

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