Spending on Credit Card with partial payment every month
I am struggling with reflecting my modus operandi on Ynab, and would like some tips.
- 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
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.