The problem I am having is when I add the interest payment each week to my revolving credit accounts. If I set up my interest payment as bank transfer - how do I track it my interest payment envelope.
Currently I am just a doing ‘transaction’ out of the our ‘engine room account’. If I change the transaction to a ‘bank account transfer’ it now shows in the account that pays the interest. How do I track a ‘bank transfer’ in an envelope that is an interest payment.
Hi Michelle – if you aren’t tracking your credit accounts in Goodbudget, then you would record the interest payment as a regular expense out of your checking account. That is, even though it’s a transfer in real life, there’s nothing to transfer TO in Goodbudget, so you write it down as an expense.
If, however, you want to track credit accounts in Goodbudget that include interest expenses, you would need to set those up as Debt Accounts. That’s meant for credit cards that you’ve stopped using and are working to pay off. It’s also for car loans, student loans, mortgages, etc. Then you would record a Debt Payment from your checking account to your debt, and you can specify how much was for principal, interest, or fees.
Here’s a primer on how to add a Debt Account: https://goodbudget.com/help/using-accounts/create-debt-account/