Paid off a ton of debt- now what

I just paid off 9 of our 10 credit cards, and closed 5 credit card accounts. Next step is to pay off a consolidation loan. 
In the amount of change made and all the closed accounts,  I'm struggling with how to update our YNAB setup. The accounts that are closed don't add up quite right. I'm not sure whether to just delete them out of the account or what. 

Any suggestions?

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    • WordTenor
    • I have the honor to be your obedient servant
    • WordTenor
    • 2 yrs ago
    • 1
    • Reported - view

    They need to reconcile to 0 before they are closed. Did they not reconcile to 0?

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      • Erica Edwards
      • Real Estate Murfreesboro, TN
      • Green_Captain
      • 2 yrs ago
      • Reported - view

      WordTenor No. they didn’t balance. One came up with a positive $80 value. One came up saying I should have still owed $200. Two had a few cents-Those I manually adjusted. 

      We had like 16 accounts in YNAB (between cards and checking/savings).  Our regular checking and our business account usually balances out. I think the interest on the credit cards had something to do with the balances being off on the cards, maybe?

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      • WordTenor
      • I have the honor to be your obedient servant
      • WordTenor
      • 2 yrs ago
      • 5
      • Reported - view

       Erica Edwards That's probable. It's very important that you make sure your accounts balance. If your accounts don't reconcile to the real world, then your budget doesn't reflect the real money you have. 

      Since you've already dealt with a bunch of accounts and backtracking might be hard, I would suggest a fresh start rather than trying to unravel multiple already-closed accounts with mistaken balances. It will reinforce your experience as a new debt-free person, and  avoid the need to mess with all of those other accounts.  Begin with the accounts you have right now, and budget the cash you have on hand today. And from now on, check periodically  to be sure that all your accounts reconcile to the penny.   It's not okay if they don't balance--you have to stop and make sure that they do. 

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      • HappyDance
      • YNABing consistently since 2014
      • HappyDance
      • 2 yrs ago
      • Reported - view

      I second the suggestion of a fresh start.

      Doing a fresh start will archive your current budget. You can always open it up again to look something up. It will retain your current category structure and your current account structure, but the new fresh start budget will have no transactions and no balance in your accounts.  So you'll be able to delete all those old accounts that you've managed to kill off.  Go You, by the way. And start by entering your account balances starting today.

      YNAB Article on Fresh Start

      YNAB Article on Reconciling your accounts

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      • Erica Edwards
      • Real Estate Murfreesboro, TN
      • Green_Captain
      • 2 yrs ago
      • 1
      • Reported - view

      HappyDance That's great. I appreciate the advice. I think I am going to wait until May 1st to start the new budget but I am on board for the Fresh Start! Thank you so much!

      Like 1
      • Erica Edwards
      • Real Estate Murfreesboro, TN
      • Green_Captain
      • 2 yrs ago
      • 2
      • Reported - view

      WordTenor Thankyou! I'll watch the amounts better now!

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    • MsTJ
    • YNAB has given me back my future
    • Believer_in_YNAb
    • 2 yrs ago
    • 1
    • Reported - view

    My guess is that you had some returns that threw your card balances off.  If one says you paid $80 to much and the other says you are short $80 I would simply move the money.  Would probably do the same on the other card to make the category match the account.  Once the paid off cards, that you plan to never use again, are zeroed out, hide them.  Do not delete because if you do, all those transactions on the cards show up in your budget as unbudgeted.  DO NOT DELETE closed credit card accounts, or closed bank accounts for that matter either, simply close them in YNAB also.  .  

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      • Erica Edwards
      • Real Estate Murfreesboro, TN
      • Green_Captain
      • 2 yrs ago
      • 1
      • Reported - view

      TryingToGetAhead Oh that makes sense. The amounts didn't balance to anything else. I appreciate you.

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    • MsTJ
    • YNAB has given me back my future
    • Believer_in_YNAb
    • 2 yrs ago
    • 1
    • Reported - view

    Paid off a ton of debt- now what

    So, now what?  What are you going to do with the money you were throwing at debt?  Do you have a plan?  I only have a vague framework of what I'm saving for now.  Would love to hear others ideas on what you are going to do with all this new found money.  

    Like 1
    • TryingToGetAhead This is a popular question after running out of debt to snowball. Now that all those funds are freed up, what's next? You can add those funds to savings, you can invest, you can try new ventures - there are a number of possibilities! As long as you're budgeting for whatever you decide to go with, there may be 'better' answers but there shouldn't be any wrong answers. :)

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      • Erica Edwards
      • Real Estate Murfreesboro, TN
      • Green_Captain
      • 2 yrs ago
      • 1
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      TryingToGetAhead   Faness  I know my  next two big things are paying off one of our two car loans and a consolidation loan we have. We aren't quite 100% out of debt yet, but we will be within 3 months. We are also taking a vacation for the first time in years. My daughter just turned 11 and we are taking her to Harry Potter World and it's been the one time we've taken a trip where I feel like we can take extra days and spend an extra bit of money- where before we would have been scraping by just to go. YNAB really has made a huge difference in me seeing how much we were paying -just- in interest alone every months. I'm getting to the point of feeling a bit of freedom but I agree it was a weird moment to not be working so hard at the snowball!!

      Like 1
    • Erica Edwards That's wonderful! I just know you'll have an amazing time - a vacation that's budgeted for is a vacation well-deserved! It's also a great way to celebrate your three month timeline - which is highly impressive! You're doing an amazing job! :)

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    • TheTabby
    • Just a common cat trying to budget uncommonly well.
    • TheTabby
    • 2 yrs ago
    • 2
    • Reported - view

    A fresh start is definitely a good option.  The other option is to do an adjustment transaction on each of the closed accounts that aren't zeroed out properly.  It'll probably throw a wrench in your current month's budget, but you'll know you're working with real money going forward.  Also, making sure your active accounts reconcile properly  is important as has been mentioned above.

    Either way, you're doing AWESOME.  Keep at it, and enjoy the added cash flow, whether it's by smacking down the next debt that much faster or by buying something fun with it.  Either way, it's your long-term effort that's gotten you to this point, and you should be proud of yourself.

    Like 2
  • Erica Edwards

    What a wonderful question to have to ask yourself! Congratulations on tackling that debt head on! I second (I think 4th at this point) the idea of a Fresh Start - with so many changes (closing accounts, erasing debts) I think it's a great point to do an overhaul and see what's still a priority in your budget and what you'd like to focus on going forward. :)

    Like 1
  • If the difference is trifling and doesn’t deserve the effort to track down you may wish to employ an old recovering accountant’s trick. Write the difference off to an “Accounting Error” category abd she’s done like dinner!

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