I have been paying off credit card balances every month, and reconciling them. Right now I have a 0% offer on one card. We have a large plumbing bill coming up, and I thought I’d take advantage of it. I would continue to pay current charges off, but pay that one bill off over time.
I saw the suggestion somewhere to make a separate Debt account for the part being paid off over time. But then how would I continue to accurately reconcile the credit card statement?
In my opinion, you wouldn’t be able to cleanly reconcile the account. I also wouldn’t create a debt account. I would just use the credit card account as is. You’ll have a running balance on it until it’s paid off, but that’s not a problem. Personally, I like my accounts in GB to perfectly reflect what I actually have in real life. However, there are many ways and many philosophies that are represented here in this forum, so I’m sure someone else will have input that would resonate with you.
Like Wayne says, we all have ways that work for us
In my case, I did set up two accounts for the same card–one with the regular purchases I paid off each month, and one as a “pay over time” account that I used in exactly the situation you’re describing. Unfortunately, it did make reconciliation much more complex and I had to do some mental and mathematical gymnastics to get it to work out. For me that was a better option; I just deducted the remaining promotional balance and used the difference to reconcile the short term Goodbudget account. It was a hassle though, and I was glad when it was finally paid off and I could go back to treating it like a regular monthly card.
I suppose it would also depend on how your statements are formatted; mine showed separate areas for the promo and the everyday stuff, so it was easier to differentiate them.
Thanks, your method makes sense to me.
Thanks for the reply. I don’t need any extra mental gymnastics right now, so if I do this I think I’d use Wayne’s method.