Patent ID: 8280808

Claim:
A computer-implemented method comprising: storing information relating to a loan account associated with a borrower in a storage device, wherein a first interest rate and a first term is associated with the loan account; segmenting the loan account into at least a first spend category; receiving a request from a borrower that a second interest rate and a second term apply to the first spend category; associating, performed by a computing device processor, the second interest rate and the second term with the first spend category, wherein the second interest rate is different from the first interest rate; allocating, performed by the computing device processor, a purchase made by the borrower to one of one or more spend categories, wherein the one or more spend categories comprises the first spend category, wherein allocating the purchase comprises: receiving an indication that the purchase has been made using funds drawn from the loan account; associating the purchase with an associated spend category of the one or more spend categories; and recording in connection with the associated spend category an increase in a balance of the associated spend category equal to an amount of the purchase; receiving a payment comprising a first portion based on the first interest rate, a second portion based on the second interest rate, and instructions on how to apply a remainder of the payment; determining, performed by the computing device processor, a first interest component for the loan account based on the first interest rate, the first term, and an account balance for the loan account; determining, performed by the computing device processor, a second interest component for the first spend category based on the second interest rate, the second term, and the balance of the first spend category; applying the payment to the loan account and the first spend category so that the first interest component and the second interest component are completely paid before applying the remainder; and applying the remainder of the payment according to the instructions.