Credit Card Interest & Fees

When you're charged interest or fees on your credit card, you'll want to track those in your budget the same way you would your regular purchases. 

If you're carrying a balance on your credit card, the credit card company will charge you interest—a fee for having a balance on the card. Your card might also have an annual fee. In either case, you'll budget for the interest and fees on your cards, and track them. 

How to Handle Credit Card Interest and Fees in YNAB

  1. Create a category for Interest and Fees (if you don't already have one).
  2. For interest, go ahead and budget for it in advance by assigning money to the category. Don't know how much it will be? Aim for an amount at the high end of what you might expect.
  3. When your credit card company charges you interest or a fee, record (or import) the charge in your credit card account register, categorizing it to your Interest and Fees category.
  4. Just like any other purchase (you just bought extra time to pay off your debt), as long as you've budgeted for it, the money will be moved to your Credit Card Payment category. That's it!
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