Why record payments?
Recording payments updates your debt balances and projections. The Debt Payoff Tracker uses this data to calculate your debt-free date and show accurate timelines.
Three ways to record payments
1. Tracking Only
Records the payment for projection purposes without creating account transactions. Use this if:
- You manage transactions elsewhere
- You just want to update the payoff timeline
- The payment already synced via Plaid
Note: Tracking-only payments don't change your account balances in Purpose Budget. Your debt balance in the tracker may differ from the account balance.
2. Create Transaction
Creates an actual transaction that moves money from your payment account to the debt. This option is available for manually-created debt accounts.
- Updates both account balances automatically
- Keeps your budget and debt tracker in sync
- Shows the payment in your transaction history
3. Link to Existing Transaction
If you've already recorded or imported the payment transaction, you can link it to a debt payment record. This connects your existing transaction to the tracker for principal/interest tracking.
Principal vs Interest
Each debt payment has two components:
- Principal: The amount that actually reduces your debt balance
- Interest: The cost of borrowing (goes to the lender, not your balance)
For loans (student loans, auto loans, mortgages), the tracker estimates the breakdown based on your APR. You can also enter exact amounts from your statement.
For credit cards, interest is typically charged separately by the card company, so the tracker treats your full payment as principal.
When to enter actual vs estimated amounts
Use the estimate when you just want quick tracking and don't need exact numbers. The estimate is based on your APR and is close enough for planning.
Enter actual amounts when you want precise tracking or when you have the statement breakdown. This is especially useful for:
- Year-end tax reporting (mortgage interest)
- Tracking exact progress on high-interest debt
- Verifying your lender's calculations
What if I miss a payment?
You don't need to record every single payment for the tracker to work. It uses your current balance and payment amount to project forward. However, regular recording helps you:
- Track actual progress vs projected
- See your payment history over time
- Catch any discrepancies with your lender
Viewing Payment History
Click the "Payment History" button on any debt card to see all recorded payments for that debt. The history shows each payment with its principal/interest breakdown and status indicators.
Payment Status Indicators
- Estimated: The principal/interest split was calculated based on your APR. You can update this with actual amounts from your statement.
- Confirmed: You've entered the actual principal/interest amounts (typically from your lender's statement).
- Linked: This payment is connected to an actual transaction in your accounts.
- Unlinked/Pending: A tracking-only payment that exists solely for projection purposes and doesn't affect account balances.
Payments and bank sync
If your debt account is connected via Plaid, payments import automatically. You can then link these imported transactions to debt payment records if you want to track the principal/interest breakdown.
Deleting debts and transactions
When you delete a debt from the tracker, Purpose Budget handles transactions differently based on their source:
- Manual transactions can be fully deleted along with the debt if you choose that option.
- Bank-imported (Plaid) transactions are preserved and only unlinked from the debt tracker. This ensures your bank balance history stays accurate for reconciliation.
The delete confirmation dialog shows which transactions are manual (deletable) vs. bank-imported (will be preserved).