Re: Debt Reduction Planner question by Chris
Chris
Tue Dec 18 09:22:31 CST 2007
"Chris Cowles" <spam_magnet@remove-me-bellsouth.net> wrote in message
news:%23hWywdYQIHA.5136@TK2MSFTNGP04.phx.gbl...
> For those of you with revolving credit cards in a DRP and the DRP
> managing the bills, does your cash flow forecast of an affected
> credit account show the estimated interest charges? Mine does not,
> resulting in a positive balance at the end of the payment series.
>
> I know that's wrong and the DRP is approximately right. I'm trying
> to determine if I've got something set up wrong in either the
> account details, DRP, or CFF.
>
> Thanks in advance.
I've figured it out but the answer isn't great. I was hoping for an
an estimated interest transaction like you get for interest-bearing
deposit accounts. It's doesn't work that way.
The interest appears only include budget items in the CFF, you add a
corresponding category to the budget, and allocate the category to the
accounts in question. The problems this causes are:
1. Interest estimate is fixed, rather than related to the balance.
2. The expense allocation is fixed by your allocation of the category.
At most you can assign it to two accounts, and the % distribution is
fixed.
3. Since the DRP payments are included in the budget as an 'expense',
adding a category for the interest duplicates that portion. (You can't
exclude the DRP accounts from the budget. Money forces that as part of
including them in the DRP.)
I'll just go back to what I was doing and ignore these accounts, with
respect to cash flow. The DRP payoff graph serves that purpose for
these accounts, and does take into account the interest.
--
Chris Cowles
Gainesville, FL