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?

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  • 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. 

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      • MXMOM
      • MXMOM
      • 3 wk ago
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      WordTenor yay you’re still here. 

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      • WordTenor
      • Can we agree that goals are dumb and immature? Sure.
      • WordTenor
      • 3 wk ago
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      MXMOM Yeah they announced the pricing shenanigans 4 days after my subscription renewed at $45, which I feel is a perfectly value-matched price. I cancelled my renewal but I still have the app and the forum for another 12 months. 

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      • MXMOM
      • MXMOM
      • 3 wk ago
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      WordTenor Ah, got it.  Am trying to figure out all the "senior" YNABers we lost on here.  Even the grumpy ones have good advice for users, sometimes much more practical than the official solutions.

      Well Merry Christmas and all that involves.  Glad you are "stuck" with us for almost another year. 

      Like 4
  • 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.

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  • 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?

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      • WordTenor
      • Can we agree that goals are dumb and immature? Sure.
      • WordTenor
      • 3 wk ago
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      Sea Green Commander  No extra manual recording necessary. Again, it is no different than any other instruction for how to handle debt on your card. Each month, you add to the card category the amount you plan to pay down your old debt. And then each month,  you send to the card the entire amount in the credit card payment category, which will contain the pay down of the old debt you budgeted, plus the sum of all the budgeted spending you’ve done that month. 

      Vexingly, YNAB has changed all their help docs to be organized in a much more cutesy manner as “I am struggling with x” so I can’t find the exact help doc to assist you, but again, you’re in no different a situation budget wise than is someone who came in with a bunch of credit card debt they need to pay off. I think it’s this one that shows you what to do. https://www.youneedabudget.com/guide/deal-with-your-debt/#strategy So those are the documents you want even though Chase is trying to tell you this is better debt. YNAB treats it exactly the same.

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    • Sea Green Commander Set a target on the credit card category itself.  I would use Specific Amount Monthly, set it equal to your plan payment, and delete it when the plan is done.  Your Available should then be the total of regular purchases plus that month's plan payment - that should be on your statement somewhere.

      Like 1
    • Orange Clarinet Super! That's a great idea. Thank you!

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  • The key here I suppose is that this is ‘cheaper’ debt. I want to make sure I cover my normal credit card spending every month.

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  • My rule is that items that depreciate should be leased or purchased cash. Items that appreciate are purchased on a loan. 

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