I have school debt in Income Driven Repayment (IDR) part of the Income Based Repayment system. I currently owe a good deal, but the payment I’m making is less than the interest that accrues on the debt (with a promise of forgiveness in the future) because it’s based on the amount I make per month. Here’s my question: how do I indicate those payments (and the accrued interest) in goodbudget?
I’ve tried just putting it in as a debt transaction, but because it’s less than the interest owed GB won’t let me proceed with recording the transaction.
Personally I would just treat it like my mortgage. I used to have separate envelope for each monthly “bill”. Mortgage, electricity, gas, etc. I’ve since rolled them all into a single envelope named “Bills”. These are the regular recurring expenses that are essentially the same month to month.
Especially with very long term (and possibly non-existent) payoff/forgiveness timeframe, it’s not worth trying to finesse your balance and interest into GB. Just plug it in as a permanent monthly expense and work around it.
Hey, thanks! I think that should work. So, instead of viewing it as an amortizing debt, just call it a monthly payment. That’s a simple solution!