Is it possible to use a single debt envelope to pay multiple debt accounts?

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  • Updated 10 months ago
I've just gone from very simple budgeting to a more robust setup, and have added Debt envelopes for the loans we carry (car, personal, student, etc.). Previously, I had a single envelope titled Fixed Expenses which included these loans as well as utilities, subscriptions, insurance, etc. but when creating a debt account I was forced (?) to create a new envelope for the debt payment, otherwise it appeared that my Fixed Expenses would be converted into a debt payment envelope in its entirety. (I'd like to know if this assumption was correct.)
Now it appears I need a separate envelope for each of the debts we're paying off, in addition to all the envelopes used in our regular budget.  This entails decreasing the budget of Fixed Expenses by the amount of the loans and reallocating those funds into multiple debt envelopes.
Finally, my questions: 1--Can I create a single debt envelope called Loans and draw debt payments to multiple accounts from it? I did not see this as an option during setup (working from the web)
2--If I designate my Fixed Expenses as a debt envelope, will that prevent me from using it for my "regular" fixed expenses in the traditional manner?
Thanks!
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Tiffany Kucifer

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Posted 10 months ago

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Telt1910

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Debt envelopes include the loan terms (how long, interest rate, etc.) and in turn give you additional features for paying down the debt, such as very accurately breaking down your payment into the principal and interest.  I have a debt envelope for my Mortgage, and regular envelopes for the other items you mentioned.  If you do not need these extra features, you can keep your Fixed Expenses envelope and proceed as usual.  I would recommend at least splitting up that envelope into a separate envelope for each of the categories you listed (loans, utilities, subscriptions, insurance, etc.).  Otherwise you are defeating the purpose of having a good view of where your money is going.
So to answer your specific questions: 1 - I don't recommend it, because: 2 - No, you will not be able to.  
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Alex Park, Official Rep

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Hi Tiffany,

To answer your questions:
  1. It is not possible to connect multiple Debt Accounts to a single Debt Payment Envelope. Each unique Debt Account will need to be connected to a unique Debt Payment Envelope.

  2. Designating an Envelope (whether new or existing) as a Debt Payment Envelope will prevent you from making any non-Debt related transactions in it. If you designate an existing Envelope as a Debt Payment Envelope, it will not erase or otherwise remove prior transaction data, but you will be unable to edit this past data or make any future non-Debt transactions.
Hope that helps!