Using a Flexi-Loan or Credit Card for Savings Until I Pay them Off
I used YNAB years ago and then left - and then recently come back. I understand the main concepts and really love the product and the approach.
I have some banking debt accounts that are usually 'maxed' and it is too much to conquer this situation quickly. These accounts are a credit card and a 'flexi-loan'. The flexi loan enables me to add money into it and take money out without penalty. Both of these accounts charge interest according to the max debt value during the month.
When it comes to savings goals, paying these off is not my highest priority.
However, I would love to both chip away at these while also storing savings into these so that I can keep interest charges down.
To discuss by example:
My flexi-loan is currently maxed at -$15 000. And let's say I want to save $5000 as an Emergency Fund.
I create an Emergency budgeting account and gradually assign $1000 per month into this. Over 5 months I believe YNAB will tell me I have $5000 assigned to this category.
Practically though, I would like to move the $1000 per month into the Flexi-Loan to reduce interest. I want to move these funds without YNAB thinking this is to pay off this debt. Since I have setup the Flexi-Loan as a Credit Card in the system (I think I did but I can't confirm).
I don't want YNAB to think this is a $500 payment and when I see the balance of the Flexi-Loan I would like to be able to figure out how much of ($15 000 - balance) is savings and how much is an amount that is being deliberately chipped away.
Because I wold like to also be able to chip away at this debt. Maybe assign another $1000 per month to paying this off.
Note that I am paid monthly - so even temporarily putting grocery money into this loan account would be useful for reducing interest.
Look up the threads on European Overdraft style accounts to find workarounds that enable you to assign available credit. Keep in mind that the reason native YNAB doesn't encourage this is that it can easily be used to acquire new debt without self discipline. However, I think it's useful to have a plan of how you'll make things work.
The key, as you said, is to chip away at it and have a measure of your progress.
Here's one. You may need to scroll a bit to find Dakinemaui's instructions.