> ## Documentation Index
> Fetch the complete documentation index at: https://docs.budgetbandit.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Pay down a balance

> Pay off a carried credit-card balance with a monthly plan, and track progress in the Debt Payoff report.

A balance you are carrying from before — interest accruing, paid down over months — is
different from spending you fund and pay each cycle. Budget Bandit treats it as debt with
a plan: a monthly amount you commit to, tracked against your APR and projected payoff
date.

## Set up a payoff plan

You can start a plan when you add the card, or any time after.

<Steps>
  <Step title="Enter the balance you owe">
    When you add a credit-card account with a starting balance, Budget Bandit asks how you
    want to handle it. To pay it down over time rather than in full, choose the pay-over-
    time option.
  </Step>

  <Step title="Set your planned monthly payment">
    Enter the amount you intend to put toward the card each month. Add the APR if you know
    it — it sharpens the interest and payoff-date estimates.
  </Step>

  <Step title="Confirm">
    The card's Payment category gets a monthly debt target for that amount. From then on,
    funding the Payment category each month moves you along the plan.
  </Step>
</Steps>

<Note>
  Already added the card without a plan? You can add a debt target to its Payment category
  later from the budget, set to a monthly amount, marked as debt with the APR.
</Note>

## Fund the plan each month

Each month, assign your planned payment into the card's Payment category — by hand, or
with [Auto-assign](/budgeting/auto-assign). The "Fund My Goals" strategy fills the debt
target along with your other targets. Then [pay the card](/credit-cards/pay-your-card) for
that amount as a transfer.

## Track it in the Debt Payoff report

The Debt Payoff report turns your plan into a forecast. It projects how long the balance
takes to clear at your current payment and estimates the interest along the way. When you
have more than one debt, it helps you compare strategies:

* **Snowball** — pay smallest balances first for quick wins.
* **Avalanche** — pay highest-APR balances first to save the most on interest.

<Tip>
  The more accurate your APR and monthly payment, the better the report's payoff date and
  interest estimates. Update them on the card as your situation changes.
</Tip>

## Related

<CardGroup cols={2}>
  <Card title="Debt Payoff report" icon="chart-line" href="/reports/forecast-and-debt">
    Project your payoff date and interest.
  </Card>

  <Card title="Set up a card" icon="credit-card" href="/credit-cards/set-up-a-card">
    Add the card and its starting balance.
  </Card>

  <Card title="Pay your card" icon="money-bill-transfer" href="/credit-cards/pay-your-card">
    Make the monthly payment.
  </Card>

  <Card title="Auto-assign" icon="wand-magic-sparkles" href="/budgeting/auto-assign">
    Fund the debt target automatically.
  </Card>
</CardGroup>