A Better Way to Manage Your Everyday Money - Book - Page 178
Credit card or bill?
How you add each credit card to your cashflow spreadsheet depends on:
● each card’s balance, and
● your ability to make payments.
When a credit card has a zero balance or you can pay the entire statement balance every month,
you add it to your cashflow spreadsheet as a credit card.
If the balance on a credit card is too much for you to pay in full, you can either:
● add the card as a credit card and use the amortization feature to pay off the balance, or
● add the credit card as a bill to pay off the balance with a custom pay-off plan.
When you treat a credit card as a bill to pay-off a large balance, you do not use the card or
balance monthly statements in PerNetFlow.
Amortize the balance
After adding the credit card, you create an automatic amortization plan for the high balance. You
will then reconcile each monthly credit card statement until the balance reaches zero, which is
when the credit card is automatically removed from amortization.
As a regular bill
You handle the credit card as a bill with a fixed number of monthly payments that are always the
same. On PerNetFlow’s Calculators page, you create a single debt pay-off plan (Chapter 12) for
the credit card. You add the calculated monthly payments to the credit card bill.
As an unscheduled bill
You add the credit card as an unscheduled bill. When you receive a statement each month, you
edit the credit card bill to schedule a payment that you can handle.
When the balance on a credit card, that was entered as a bill, is paid off, you can remove the
credit card bill from your spreadsheet and add the credit card as a credit card.
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