Credit card confusion - overpaid card resulting in money to spend

Hi there,

We are long time old YNAB users but are pretty new to new YNAB (I've been on it for two weeks).  I added all of our credit card accounts, which we treat as cash and pay off monthly, and everything was going smoothly until my husband decided to overpay his card.  He owed $612 and paid $1200, so he has a positive balance on the card now of $588.  

The result of this overpayment was that it showed that we had gone overbudget for the card payment (this makes sense to me as I had only budgeted for the balance owing) but what's weird is that it is now also showing that I have another $588 of inflow to budget in November.  Yet if I actually budget that amount then I end up overbudget in December.  

HELP!  I'm so confused, and this is making my type A brain that wants to budget to 0 crazy...

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  • I'm sure someone will be along shortly to help you make sense of the credit card mechanics in the new YNAB...

    But if you always "treat your cards as cash and pay off monthly", I heartily recommend setting up your credit cards in YNAB as "checking" account type.  If you do that, YNAB will reinforce your "same-as-cash" mindset, and you won't get tripped up by any of the automatic payment/debt-management  features (that are sometimes counter-intuitive, and not applicable or helpful to someone who always pays their card in full.)

    It's not officially condoned by the YNAB support team or their docs, but many long-term users will attest that it works great and massively improves their experience with the software. (And I'm obviously one of them!)

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  • Hi Beige Trumpet !

    I'd love to help! If your payment created a positive balance on a card, the positive balance is treated like cash and is added to To be Budgeted. Budgeting those dollars directly to the Credit Card Payment category will bring it out of the red. Here is the help article that talks about a credit card with a positive balance. 😊

     

    To help get you get the hang of things ever more, here are the two best resources I recommend!

    - The Help Docs section on Credit Cards & Debt

    - The workshop titled Master Credit Cards with your Budget

     

    I hope that helps. 😊

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    • Jannelle Thanks!  Budgeting those funds to the payment definitely helped.  

      Now to figure out expense reimbursements ;)

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  • Yesterday I created the same problem for myself, but I'm still unclear what to do to actually pay the remaining bills (which normally would be paid out of the same checking account )I double-paid the account balance twice (say $3000). My intention was to pay off the $3K balance. So how can I actually pay off the other bills? It might balance in YNAB if I entered the transactions that way but a lot of the expenditures (e.g my mortgage payment, set up to autopay out of the primary checking account) don't want to take credit cards. 

    I realize that this isn't really YNAB's problem It doesn't care what account with a positive balance I use. But when it comes time to actually paying the example bill I'm dead meat.

    Realize this is a stupid newbee question....only been in YNAB two weeks....going crazy watching videos but gradually may be getting the hang of it. Thanks for any help you can offer. 

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      • jenmas
      • jenmas
      • 1 yr ago
      • Reported - view

      Aquamarine Transistor Your best bet may be to call the credit card company and ask them to cut you a check for the positive balance. Hopefully they can get that to you ASAP in time to pay your mortgage.

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      • nolesrule
      • YNAB4 Evangelist
      • nolesrule
      • 1 yr ago
      • Reported - view

      Aquamarine Transistor I would disable the autopay. Usually the mortgage servicer gives you a decent grace period before the payment is considered late, so you could delay the payment. It's possible this would allow you to get some income (or the overpayment refund) in the meanwhile to be able to make the mortgage payment.

      Now if you have enough money in your budget, you can float it and just make sure you have enough in the checking account.

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  • Thanks for the suggestion. I imagine that would return some money to my account for the short term. 

    I can add more from savings into the checking account, but I still wind up with a big tbb that can't really be applied to anything else. Maybe I should just go back to the bank's credit card department and have them reverse the charge and return the money to my checking account. This can be done but is delayed by BofA for up to three days before it will post back. It sounds pretty clean and I wouldn't have to create any fictitious entries. 

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  • You need to budget that $588 to the credit card payments category to cover the money he sent.

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