The pay down credit card feature allows users to create transactions online that automatically apply the payments against the highest interest rate first, thus helping to pay down the debt more quickly. This method of paying off credit cards is also known as the avalanche method.
Another benefit is that it limits the amount of money paid toward interest charges, allowing you to put more money towards your principal balances and reducing the total number of dollars you have to pay back. This can be a significant advantage especially if you are paying multiple cards with high interest rates or ones with variable or annual accrual.
This new transaction is easy to use and eliminates a common mistake bookkeepers make when posting credit card payments in QBO. In our ongoing quest to make bookkeeping accessible to DIY business owners, we are proud to introduce a feature that makes this workflow transparent and seamless. Check out the full article in the Community for more information on this new feature.