Spending on Credit Card with partial payment every month

I am struggling with reflecting my modus operandi on Ynab, and would like  some tips.

Quick explain:

- In Brazil, you can pay on credit car on several installments (e.g. 10x) without interest, as long as every month you pay the monthly installment for that purchase

- So I concentrate all my spending on credit cards, because additionally it gives me loyalty points :)

- But if I use the Ynab credit card, it will show something like this, e.g.:

    - My credit card open balance : (2,000)

    - Payment required for this month: (200) -> 1,600 I will only have to pay in the future, and should not affect this month available to budget 

But Ynab considers I need to budget for the full amount...


I tried to play setting up CC as a Loan account (tracking), but then I cannot record transactions to it with associate categories.

And I would like to register that everything is being paid with CC, so I remember I need to pay the monthly bill - and can follow on the amount I will be charged for that month


Any thoughts? 

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  • Hello, Rafael ! Great question.

    Your Credit Card Payment category in YNAB always shows you how much you're able to currently pay on your credit card, but that doesn't mean you have to pay the full amount.

    So if you can afford to make the purchase in cash but want to pay it off over time to earn interest on your savings in the meantime, all you need to do is pay the minimum necessary amount to your credit card company and leave the rest of the money in your Credit Card Payment category.

    Now, if you're not able to budget enough to your Credit Card Payment category to cover the full amount you owe, that means you have some credit card debt (even though it's 0%, it's still debt!), and will want to set up a goal on the Credit Card Payment category so you can pay it down over time.

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      • Rafael
      • rafaelperon
      • 2 mths ago
      • Reported - view

      Matthew  Thank you for the answer, I am understanding better the concepts now.

      Still, one example that I am yet confused with:

      - Lets say, for simplification, that my monthly paycheck is $ 12,000

      - I have now open on my Credit Card, ($ 10,000) - which is debt, I agree

      - But I am only required to pay ($ 5,000) this month - the remaining s to be paid on other months


      In this situation, my "Budget" on the left panel shows $ 2,000 available - but I should consider this as my actual budget, because it includes future debt that are not to be paid right now, is that correct?

      This is what was confusing me, the available Budget on the left and the To Be Budgeted does not match, so I thought something was wrong.

      • dakinemaui
      • dakinemaui
      • 2 mths ago
      • 1
      • Reported - view

      Rafael Ignore the $2000 total of budget accounts on the left. It's somewhat of a Net Worth, but not really. You need to make a plan for all your cash that's in your checking account. Right now you have a plan to use $5k to pay off credit card debt. When and exactly how much you send to them is up to you. 

      You also know you will have to pay off more than just that $5k at some point if you wish to avoid interest. You might earmark (reserve) some of the remaining $7k for that purpose.

      Or you might use future income instead. If you decide to do that, it's recommended you regularly add to what's reserved so far.  You need another $5000 reserved, so if you need it paid off 5 months from now, that's $100 per month until then.

      Every dollar you budget up front reduces the amount you need to budget on an ongoing basis. It also reduces what you can spend on other things right now, so find your own mix of now versus later.

      Set a Payoff goal by Date of you need help with the math.

      Like 1
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