My bank combined my line-of-credit (LOC) debt with my checking account (in order to reduce the amount of interest I’m incurring on the LOC). How should I set up my accounts?
For example, if my LOC is for $10,000 and I’ve used $6000 of the LOC as debt, this would show -$6000, showing I’m overdrawn by $6K. My checking account, if I kept it separate, let’s say has $2000 in it. When my bank combined the accounts, my account would be showing -$4000 (i.e., I’m only $4K overdrawn because I’ve “paid back” a portion of the debt I owe.
Even though your bank has combined your checking and LOC in real life, I would suggest tracking them separately in Goodbudget. You’d keep your Checking Account listed as such, and then track your LOC as a Debt Account with a starting balance set to what you currently owe (6000).
Any withdrawals you make against your LOC can be recorded as a ‘New Charge’ against your LOC Debt Account. Then, you’d record an Income for the same amount to your Checking Account, so your withdrawal is available for you to spend.