Available cash for Credit Card Payment

mrzoops

Hello, I have 2 credit cards. One that I sue for most of my purchases and another that is a transfer card with a high balance that I only make payments to with whatever money I have in surplus after my budget each month.

My question would be, how can I best see how much money I can safely pay towards this card each month. It's not simply whatever money is left over because I have certain incomes throughout the month that are excluded from the spending plan for this reason.

If I make too big of a payment, then my checking account will not cover my other monthly expenses. What would you do in this scenario for easy tracking and making sure I do not go over?

ajbopp

I'm not sure this is a viable option for your circumstances, but I think what I would try to do is pay this months credit card with last month's surplus, rather than try to anticipate what this month's surplus would be. It might be as simple as changing the date you make a payment on. If you move that payment date to the first week of the month, you should know how much surplus you had at the end of last month to cover your payment.

Bgz

@mrzoops I am not clear on why certain income throughout the month is excluded from your spending plan. If all your income and expenses are fully accounted in the spending plan, then you will get a better idea of surplus money.

As mentioned by ajbopp, you can consider changing the credit card payment date to the date when you have better idea of your surplus money. Another suggestion is to make multiple smaller payments rather than one payment.

You can also consider having a slightly bigger buffer to ensure your balances do not go in the negative. For example, if you need $1000 to cover all monthly expenses and consider making $500 extra payment, you can account for the checking account to be always above $2000. You may have to forego additional payment for a month or 2 to create the buffer, if you like this approach.