TSM Tips: How to Manage Credit Card Payments in the New Software

When using The Shred Method™ software, it’s important to handle credit card (CC) payments properly — especially if you're using the Consolidation of Expenses feature. Here's how to stay aligned with your real-world transactions and keep the software working effectively.

🔄 Credit Cards Used for Monthly Consolidation

If you use a credit card to consolidate your household expenses (which we recommend!), you’ll notice that the software tracks both:

1. The monthly expenses added to the CC
   
   

2. The monthly payment to pay off that CC
   
   

Because you're paying the card off every month, we recommend you set this credit card’s priority to last in the software. Why?

If it’s set to a higher priority (like Priority 1), the software may constantly try to pay it off in full every time you add an expense to it — which isn’t necessary since you're already doing that once a month.

✅ How to Handle These Transactions

Here’s what you’ll see in your Transactions tab each month:

1. From [Credit Card Name] → To: Consolidation
   This represents the total of all the expenses you've consolidated into the CC for that month — basically, how much you've added to the CC balance.
   
   

2. From Shred Account (HELOC, LOC, or Checking) → To: [Credit Card Name]
   This is the payment made from your Shred Account to pay the CC off.
   
   

If you're paying off the CC in full each month, these two transactions should have the same amount. Simply transact and modify the “Actual Amount” to match your real-world payment. This keeps the software accurate and up to date.

🧠 What If You’re NOT Paying Off the Card Monthly?

If the credit card you're entering is not paid off in full every month and you’re using The Shred Method™ to pay it down over time, then it can be included in the priority list for debt shredding.

You can let the software determine the ideal payoff order based on interest savings, or feel free to consult one of our coaches for personalized guidance.

📌 Bottom Line:

• Set monthly consolidation CCs to last priority
  
  

• Transact both the Consolidation and Shred-to-CC payments monthly
  
  

• Keep things accurate by modifying “Actual Amount” as needed
  
  

• If you’re shredding a card’s existing balance, prioritize it as appropriate
  
  

Need help setting this up or reviewing your CC strategy?
Reach out to us anytime at hello@theshredmethod.com — we’re here to help!

We also want to ask you a favor, we're currently trying to build a database of HELOC providers to help new members find a lender wherever they may be based. We would greatly appreciate it if you could fill out this form based on your HELOC provider.