Credit card payment question

Hi folks, I'm a couple of months into my YNAB journey and I have a query about credit card payments.

 

Today is payday. I've covered my essentials but I've not fully allocated all my other category spending yet so I have a good chunk left in To Be Budgeted. 

 

I decide to use some of that extra cash to pay down my monthly credit card balance early.

 

So I transfer about £200 to my Amex, in exactly the way that the YNAB guide says to input credit card payments. I expect this money to have been taken out of my TBB but...It hasn't been, the balance hasn't changed. Even thought it's correctly showing as having been transferred from my current account to my Amex.

 

Am I missing a step here? Do I need to add the payment to the "Budgeted" section of "Credit Card Payments" in my Budget screen for it to show up?

 

I'm getting fairly comfortable with how YNAB works but credit card payments still confuse me...Any help would be appreciated!

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  • The CC payments transfers consume money that is sitting in the Credit Card payment category for that card, not TBB in the same way that spending consumes money from a spending category.

    If you want to use extra money to pay down credit card debt, then you would budget money to the CC payment category first. For budgeted purchases made using YNAB, YNAB handles moving the money to the CC payment category for you so it is reserved for future payments.

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    • nolesrule riiiiight! Gotcha, that makes sense, thanks. So the green numbers in the right hand column (on mobile) represent how much money I have available to pay off my credit cards?

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    • Green Captain Yes! That green bubble tells you the amount you have available for payment. 😊

      It sounds like you might've taken a look at this already, but just in case, here's our Credit Card Payments Help Doc that explains how money moves to this category and dives deeper into how these payments work in YNAB. 😊

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  • Green Captain said:
    Am I missing a step here? Do I need to add the payment to the "Budgeted" section of "Credit Card Payments" in my Budget screen for it to show up?

     Yes, a transfer between accounts will not affect the budget, it's simply saying "Instead of me having money in X account I now have it in Y account"  Your question quoted above is correct, move money from To Be Budgeted into the Credit Card, and the "available" column (which actually means available to pay to the CC company) will adjust by the amount moved over.

    And just to avoid confusion, you probably want to delete that transfer to the card, since you didn't actually make a payment yet (I think) you were only trying to say that's what you wanted the money to do.  Or, simply adjust the amount to reflect the total in your CC's available column, and then actually make the payment.

    So make your budget and your accounts reflect reality.  First move the money over to the Credit Card, so it's available.  Now go to the accounts section and make the payment  based on how much you have budgeted to send off to the company.  Then send the money off to the company, and when it shows up on the CC balance, (and when it disappears from your checking account) you can clear those transactions, and reconcile the accounts.

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    • Thanks for your response, this makes sense. I have actually made the payment already - sorry that wasn't clear!

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  • If you do not carry debt on your credit card, your CC payment category available (the green bubble) should always be equal and opposite sign to the working balance on your CC. E.g if you owe £-1000 on a CC, the payment category for that CC should have £1000 in the available column. You should regularly check for this agreement as some events can break it.

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