Since becoming a member of this community, I’ve come to understand the wisdom of temporarily freezing my credit card while working towards paying it down. I’ve initiated using the Debt Planner Sheet to meticulously monitor my progress in reducing my credit card debt.
Currently, I am in the process of categorizing all the transactions associated with my card. I seek guidance on categorizing them under the credit card account or allocating them to regular expense categories (such as shopping, dining out, etc.).
Your expertise in this matter would be greatly appreciated.
Generally, when using a credit card you’d want those transactions to be categorized based on the intent of the spending (so “restaurants” or “gas”) and the payments are transfers. However, when you’re working to pay off debt the categorization is a little different.
The Debt Planner’s topic has some good guidance on that:
