We do not promote or encourage the use of credit cards. Using a credit card for expenses means that you are adding new debt instead of using your income. Therefore, using debt to pay for daily (or any) expenses doesn't get you ahead with money. It only risks getting you further behind. It's not recommended, nor does it make sense.
If you decide to connect your credit card, you do so by connecting the bank that the credit card is based on (for example, if you have a Citi Visa, connect Citi to EveryDollar).
Once the connection is made and credit card purchases come through, there are two ways to track them:
- Enter purchases into the correct Budget Items. Put gasoline purchases in the Gasoline line, restaurant purchases in Eating Out, and so on. When the bill comes in each month and you pay it, you will receive a positive transaction and a negative transaction from the bank. Delete both of them.
- When you purchase something and the transaction comes in, delete it. When the final bill comes in (the positive and the negative ones), delete the positive and split the negative transaction between the correct Budget Items.
Pro Tip: EveryDollar gives you the ability to split transactions between multiple Budget Items. Make sure to use that to keep your purchases properly accounted for.
Next Steps
If your spending has led to debt, it's time to draw a line in the sand. Stick to the budget and pay that debt off!