Paying off debt is a great financial goal. If you’ve currently been using only a Monthly Envelope to track your monthly debt payments, consider using Debt Accounts to track your progress.
Using Debt Accounts will streamline the debt tracking process. And, you’ll even be able to run reports, and add your debt payments with a single transaction.
If you want to give Debt Accounts a try, you can watch the video below to see how you can link your existing Monthly Payment Envelope to Goodbudget’s new debt features, or follow the steps below.
Step 1. Click on Add/Edit on the Accounts tab
Step 2. Click on ‘+Add’ under the ‘Debt’ section
Step 3. Give the Account a Name, like Car Loan, and enter the Current Balance in the field provided.
Step 4. The ‘Working to pay off’ option is selected by default.
Step 5. Now, you can select your existing Monthly Payment Envelope to link the Account to.
Step 6. Enter your Monthly Payment, and, optionally, the Interest Rate. If you’re not sure, just estimate and update this information when you know for sure.
Step 7. When you’re done, press ‘Save Changes.’
Now that you’ve created the Account, you can monitor its balance from the Accounts tab. As you make debt payments, you’ll see the red bar get shorter and shorter until it disappears.
If you have existing scheduled transactions for your monthly debt payment, they will no longer work. You will need to delete them and create new scheduled debt transactions via the Debt Transactions tab.
What’s next? Now that you’ve set up your Debt Accounts, see how you can fill your Debt Payment Envelope.
Pro Tip: If you want your Debt Account so show your overall progress since you started paying on the debt, click here to learn how.