How to handle “My chase plan” purchases?
My chase card allows you to spread the cost of a transaction over a few months without interest (but with a monthly fee)
e.g. I pay my credit card balance in full every month except for the chase plan transactions, which are paid in equal monthly payments. The overall credit card balance shows the full balance owed.
Whats the best way to track this?
It’s still credit card overspending.
in the month you make the purchase, that category is overspent. In future months, you add the amount you’re paying back to the cc payment category just as you would if you were carrying any other balance. I’m sure YNAB official folks will swing by and tell you how you can set a target but you don’t need to; the amount you have to pay back each month is already known so just budget that.
This question gets asked often with various versions of these programs because it demonstrates the huge difference in psychology between YNAB and your bank. You’re looking for “how do I track it” and not thinking “oh what are the instructions for accruing debt on my card” because Chase wants you to feel like it’s not *really* debt, it’s different then if you had gone on a spending bender and now owe thousands. YNAB shows you that’s not true. It’s still unfunded spending and isn’t any more special.
That is an interesting service. I can see how it would be helpful to balance monthly expenses with a buffer, but with YNAB you can manage that buffer yourself instead of chase charging you a monthly fee to do it. Set goals on each budget category based on your average spending for 4 months. If you run out of money in that budget, then you know you spent more than your goal. If you have extra, leave it there because you will probably need it the next month. The problem I see with the Chase Card method is that they are encouraging you to not have a budget, and so that monthly average payment is likely to keep increasing and get out of control.
Hmm still not totally clear how I combine 1) a credit card that I pay in full every month
2) with certain large purchases whose cost I want to spread out over a few months.
I assume I should set up a new category for these large purchases, then let it go overspent which creates debt the next month. I’d like to be budgeting for the correct payment each month. I guess it’s just a manual process of recording this elsewhere and moving the correct amount from ready to assign to the credit card every month until the item is paid off?