How to handle existing credit card debt when starting out

Hello all,

I am just starting out and have linked my accounts to YNAB. One of those is credit card account with a balance that will not be paid off for several months. I understand how to handle any new transactions against the credit card. But what do I do with the existing balance?

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  • When you want to make a larger payment (than is automatically reserved for new budgeted purchases), just budget the additional funds directly to the CC Payment category. Pay what's in the Available column or the statement balance -- whichever is less.

  • Thanks for the quick response! I guess I did not realize you could do that.

    Will it make a difference that the account I am paying out of is also linked YNAB? And so that payment will, as far as I can tell, be imported as a transfer?

      • Dave
      • Slate_Gray_Deer.9
      • 3 mths ago
      • 1
      • Reported - view

      no difference at all. Assuming you manually enter the transaction in YNAB, when it imports, Ynab will make it as cleared in both accounts. 

      Like 1
  • Gold Rhythm said:
    that payment will, as far as I can tell, be imported as a transfer

    It won't import as a transfer out of the gate. If you manually enter, the subsequent match will set up a payee renaming rule to change that imported payee to be a transfer. If you don't manually enter, you'd need to edit the payee in the imported transaction to be a transfer the first time around.

    Recommended practice is to manually enter all transactions and use import as an aid to reconciliation. Category balances will then not be misleading due to the unavoidable import time lag.

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