Credit cards - should the budgeted amount be equal to current debt?
Right? My current balance on my card is $706 (I owe this much). My last statement balance, the amount I’ll be paying next, is $606. My YNAB green available amount is $530. Does that sound right? Shouldn’t my current total balance on my card, the full amount that I have spent on it at any given time regardless of when my bill is due, be equal to the green “available” amount on my YNAB? Or does it depend on when I actually pay the bill?
If anyone can shed any light on this I’d appreciate it. Thanks!
The Available amount should equal the current debt (but positive whereas the account balance is negative). This may mean adding to the budgeted amount which is a completely different column. There are any number of reasons that the Available amount can get out of sync - incorrect starting balance that didn't properly account for pending transactions, returns, statement credits/cash back, or unwittingly living on the Credit Card Float are the typical culprits.
If you're a newer YNABer and you started your budget having an outstanding balance on a credit card, you should budget for your starting balance directly in the Credit Card Payment category if you plan to pay your card in full. (Here’s a video explaining how this works.) This might be the reason your current balance doesn't match the Credit Card Payment category.
It sounds like you want to pay your card in full ongoing. Is that the case? If so, this Helpdoc will help! :)