Credit Card Showing Negative



So I still can't get my head around how YNAB handles Credit Cards.

Currently, my Credit Card account is showing the correct balance.


However, when I view my credit card balance in my budget it shows as -£625.82

It says:

"You've overspent this category by £625.82. Cover this overspending or you can’t trust your budget balances!" 


My concern is that I could be underspending my budget my this amount as it thinks I have under-budgeted if this makes sense. 

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  • When you started using YNAB did you budget to the credit card payments section to reserve money to pay off your card??

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  • Hi Sky Blue Hail !

    YNAB moves money to account for any budgeted purchases you make. For instance, let's say you have $20 budgeted towards Groceries. If you spend $20 on your credit card and categorize the purchase as Groceries, YNAB moves that $20 from your Groceries category to your credit card category. You'll see $20 Available to pay towards your credit card balance.

    If you have an outstanding balance on a credit card when you set it up in YNAB, and you plan to pay that in full, you’ll need to budget for it in the Credit Card Payments category. That’s what lets the budget know you plan to take some of the money you have and use it to pay off that existing balance. Here’s a video explaining how this works.

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