On Mar 31, 2009, at 9:47 PM, cardigrl wrote: > When you use the debt repayment bucket, do you use that for the > entire amount of the payment, or just the interest? In other words, > I'm paying down a credit card. I need to plan for the entire > monthly payment, so that's what I assign to the debt repayment > bucket. But what do you do with the interest charges? Do you > track those somewhere other than as an increase in the credit card > account not assigned to a bucket? If I assign those to the debt > repayment bucket, it seems I would be counting that twice because > it's included in the monthly payment. > > Does that question make any sense?
Hi Lynne, You don't need to track the interest separate from the payment since a credit card is charging you interest on interest. Trying to break those values out isn't helping your cash flow management. Pay down your credit card balance and work to eliminate them as a means of paying any expenses as quickly as you can and that will help reduce the interest you are paying. As for the bucket assignment, the goal is to set aside money to pay off your debt so you'd give the Debt Repayment bucket a planned amount, allocate income to it, and then pay your credit card with that payment assigning the whole withdrawal transaction to that bucket. If this isn't clear, please let me know. Peace, Kevin Hoctor [email protected] No Thirst Software LLC http://nothirst.com http://kevinhoctor.blogspot.com --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "No Thirst Software User Forum" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/no-thirst-software?hl=en -~----------~----~----~----~------~----~------~--~---
