Guides

Debts you already owe

Add each balance, see why a minimum can fail, and how extra money is split.

11 lessons. Read them in order, or open the one that matches your question.

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1. 1A balance is required before a debt countsThe month, the payoff list, and the “you have numbers” check all ignore a debt until its balance is above zero.1 min
2. 2More than one balance in the same monthEach debt has a name, a balance, a rate, and a minimum payment. The month uses the ones with a balance above zero.1 min
3. 3Naming a debt so the date is readableThe household month prints each debt’s name next to its payoff. Specific names keep those lines distinct.1 min
4. 4A credit card balance and rateType the balance you owe, the purchase APR as a yearly percent, and the minimum the statement asks for.1 min
5. 5Minimum payments and how long payoff takesEach debt is paid with its minimum plus its share of any extra. The date is how many months that payment takes to reach zero.1 min
6. 6A payment that does not cover interestIf the payment is not larger than a month of interest, the balance never falls. The date says the payment does not cover the interest.1 min
7. 7Extra money is split by the minimumsAn extra monthly amount is shared across debts in proportion to each minimum payment. It is not sent entirely to the highest rate.1 min
8. 8Why a high rate still needs its minimumEvery row keeps its minimum. The extra is shared. A high rate does not automatically receive the whole extra.1 min
9. 9Interest with and without an extra paymentThe debt screen compares interest and time at your minimums with interest and time after the extra is split.1 min
10. 10Debts inside the household monthThe debt slice is the sum of minimums plus extra, for every row with a balance. It sits beside housing and the car.1 min
11. 11Payoff dates under the monthThe car loan end date and each debt’s end date sit under the month, next to the PMI line when that exists.1 min