Credit cards

Credit cards are treated with special care, designed to help you keep track of your spending and repayment without losing sight of your overall financial health. Here's how credit cards work in the app and what features you can use to manage them effectively.

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Creating a Credit Card Account

To add a credit card:

1. Go to the Accounts Tab: Tap on "Add New Account" in the top right corner.

2. Select Account Type: Choose “Credit Card.”

3. Input Balance and Details: Enter the current balance (usually a negative number, representing the debt owed). You can also set optional fields like credit limit, due date, and closing day, which will help the app manage your repayments.

4. Choose a Payment Strategy: This is crucial. You have three options:

   • Pay in Full: The app will assume you have the funds available and will automatically allocate the money to pay the card balance at the end of the statement period.

   • Pay Current Balance Over Time: The app will help you set a plan to repay your current balance over several months. You'll be able to simulate how long it will take to pay it off using the in-app calculator.

   • Handle it My Own Way: This option allows you full control without automatic allocations. You decide when and how to repay your debt.

After setting up your credit card account, the app creates a special category specifically for credit card payments. Any expenses made with the card will move from their respective categories into this credit card category until the card is paid off.

Accounts screen

New credit card screen

When you create a credit card in app, a new category will automatically be added under Debt Repayment with the same name as the credit card. This category will track all expenses made using the card, allowing you to monitor your repayment progress until the balance is fully paid off.

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Managing Your Credit Card Payments

Once you start using your credit card for purchases, the app will track your expenses and allocate them accordingly:

• When you make a purchase, the amount is deducted from the category where the purchase was made (e.g., Groceries, Entertainment) and moved to the Credit Card Payment category.

• This process ensures that you don't accidentally count the money twice—first in the spending category, then again in the payment category. The available money represents how much is there for the next credit card repayment.

Recording a new transaction

Credit card category

Credit card category details

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Payment Strategies Explained

Your selected payment strategy guides how the app manages your credit card debt:

1. Pay in Full:

   • If you select this option, the app will allocate enough money from your budget to cover the full balance when your statement arrives. This strategy is perfect if you're able to pay off your card every month and avoid interest charges.

   • The app automatically calculates and holds this money in the credit card payment category, ensuring that it's reserved for repayment.

2. Pay Current Balance Over Time:

   • For those who need to spread out credit card payments, this option sets a monthly target to gradually reduce the balance. You can simulate different repayment scenarios using the app's built-in Debt Calculator.

   • The calculator allows you to adjust factors like extra payments or interest rates, showing you how these changes affect your payoff date and total interest paid.

3. Handle it My Own Way:

   • This strategy gives you full flexibility to decide when and how much to pay. The app won’t auto-allocate any funds, but it will still track your debt and spending, giving you insights and notifications to help you stay on top of your repayments.

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Using the Debt Calculator

For users aiming to pay off their credit card debt, the Debt Calculator is an invaluable tool. When selecting the Pay Current Balance Over Time strategy, inputting your balance, interest rate, and preferred repayment schedule, you can simulate how long it will take to clear the debt. The calculator also shows how making extra payments could reduce the interest and bring you closer to being debt-free.

Even small extra payments over time can significantly reduce the total interest you pay and shorten the duration of your debt. Consistently adding a bit more to your repayment each month can lead to major savings in the long run!

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Paying Off Your Credit Card

When your credit card statement arrives, the app makes it easy to settle your balance directly within the app. Here’s how to do it:

1. Transfer from a Transactional Account:

   • Navigate to the Accounts Tab and select the transactional account (like a checking or savings account) from which you want to pay your credit card bill.

   • Tap Transfer and choose the credit card account as the destination.

   • Enter the amount you wish to pay. You can choose to pay the full balance, the statement amount, or any other amount as needed.

Select new transfer

Select the accounts

Updated category

1. Monitor Payment Status:

   • After completing the transfer, the app will update both your credit card balance and the transactional account. Your payment progress will also reflect in the Credit Card Payment category, giving you a clear view of how much you’ve paid and what’s left.

This seamless transfer feature ensures that your credit card payments are handled smoothly, keeping your finances organized and preventing any missed payments.

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Conclusion

Managing credit cards in our app is designed to be straightforward and powerful. Whether you're paying in full every month or working to pay down debt over time, the app's features ensure that you stay on top of your credit card usage. By leveraging the payment strategies, auto-allocation, and debt calculators, you can manage your credit card with confidence and precision, all while maintaining a clear view of your overall financial health.

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