|
|
|
Karen,
I currently have Quicken 5 for Windows. Is there anything in this version or a newer version that will help me budget out my credit cards. I have 3 credit cards I would like to pay off by the end of '98. Is there an option that takes into consideration the amount due the time schedule and the interest in order to forecast my potential payments down the road?
Denise
My congratulations to Denise and all the other DS readers who have resolved to pay off their credit card debts in 1998. If you want to do as Denise and use Quicken to track your progress, then read on. Basically, you have two options. If you want Quicken to do the work for you calculating the interest and principal portions of each payment you make, then you could set up each credit card as a loan using Quicken's loan feature. Access this from the Activities drop down menu. The process is fairly lengthy, you need to follow the directions in the User's Guide. During this process Quicken will create a new liability account for you. (Note: for this to work you MUST NOT create the new liability account yourself from the Account List screen). In the process of setting up the loan you will give Quicken all the information it needs to automatically calculate the interest and principal on each payment. Since this feature of Quicken is typically used to track loans and mortgages which take longer than one year to pay off (or amortize) it may not be the best way to go for credit card debt.
The second option would involve setting up each credit card as a liability account. Click "New" in the Account List screen, then choose either "credit card" or "other liability" for account type. The beginning balance will be the amount of the ending balance on your most recent statement. With this method, each time you make a payment you will have to split the transaction into interest and principal portions yourself, with the category for principal being a transfer to the liability account you set up to track the debt. (Note: it is on the Category and Transfer List down at the bottom).
To assist in making this calculation, you can print out a twelve month (or however many months you choose) "Approximate Future Payment Schedule" which you can create using Quicken's Loan Financial Planner. Access this by selecting "Financial Planner" from the "Plan" drop down menu and then choosing "Loan". You will see a screen where you can fill in loan amount, annual interest rate, etc. and a button to click to produce the schedule. Keep the printed schedule with your past statements or wherever it will be handy for you to find when it is time to make your monthly payment. From your new monthly statement you can find out whether your estimate from last month was correct and if not you will have to go back and edit the previous transaction. I should point out here that you might also have to make corrections to interest/principal amounts on past payments using the first method because the way Quicken calculates interest may not be the same method that the credit card company is using. Good luck and again, my congratulations on your resolve to pay off those debts!
(editor's note: Karen received the following note from Denise.)
Thank you so much for the "how-tos." The Loan feature is exactly what I was looking for. I now have a goal payment to go for. My monthly minimum payment will now go from $45 to approx. $136...but it will be worth it if I accomplish this goal. I did pick up a part-time job that will help so I'm on the way. FYI I did call the credit card company to see if they'd lower the interest rate. No luck. At least not until I payoff the amount currently owed. But I also did a pseudo-loan for the amount with the lower interest rate...not much difference. So one way or another I will pay but after this I promise to behave! Thanks for all your help.
Denise
Karen is a former computer systems analyst programmer, the wife of a minister and an at-home-mother of two teenage daughters. Home management, and especially budgeting are her forte, but she also enjoys sewing, crafts, Girls Scouts, garden club, and volunteering at church and school.
Sign up for our free eNewsletter Dollar Stretcher Tips.
Looking for an answer to a frugal living question? Click here to ask a Dollar Stretcher Stretchpert!
To subscribe, check the newsletters you wish to receive, enter your email address and then click Subscribe.
Each month one TDS reader will win $100 just for telling us your favorite time or money saving idea. It could be you!
Click here to share your idea.
Recent winners are:
- Michelle from NC
- Matt from CO
- Joan from CT
- Joanne in New York
|
Money problems? Struggling with credit card debt? What you need to know about bankruptcy? Trouble repaying student loans?
|
Copyright 1996 - 2012 "The Dollar Stretcher, Inc." All rights reserved unless specifically noted.
Contact the Dollar Stretcher at:
Dollar Stretcher
PO Box 14160
Bradenton FL 34280
Voice 941-761-7805
Fax 941-761-8301
"The Dollar Stretcher, Inc." does not assume responsibility for advice given. All advice should be weighed against your own abilities and circumstances and applied accordingly. It is up to the reader to determine if advice is safe and suitable for their own situation.
| About Us | Privacy Policy | Writer's Guidelines | Sponsorship | Media | Contact Us |
Dollar Stretcher Community
Forums
Blogs
Also In This Week's Issue
In The Dollar Stretcher Community
Reader Favorites
Newsletters
Email
Print
Contact Editor
RSS Feed
Share
Leave a Comment
