I got the following email from an Inzolo user. I thought it might be good to respond publicly:

[A competing envelope budget tool] transfer monies to a credit card envelope from a specific envelope category once a credit card transaction has been made. Then you know you have the money set aside to pay the credit card.

How does this work for Inzolo?

I’m familiar with how [this competing envelope budget tool] handles credit card transactions. I always found it overly complicated and confusing. I don’t think you need the special envelope. If you allocate the money you have received and only spend what you have allocated to your envelopes, it doesn’t matter if you spend it using your credit card or debit card.

For example, say you have $1000 in your checking account. Of that you allocate $100 to gasoline and $300 to Groceries. We’ll say the other $600 is allocated elsewhere. Say you go to Costco and use an American Express card to purchase $50 in gas and $200 in groceries. That leaves you with $50 in your gasoline budget and $100 in your grocery budget. Your envelope total is now $750. Your checking account balance is still at $1000 and your AMEX account balance is now at -$250. When it comes time to pay your credit card bill you just pay it. I personally have an envelope for AMEX which I use simply to put my transaction records. When I pay my bill, I get two transactions: 1) -$250 from my checking account and 2) +$250 in my AMEX account. I put those both in my AMEX envelope and it balances out to zero. My envelopt total remains at $750 and my AMEX account is back to zero.