Budgeted Credit card payment then paid it. All messed up now.

So I treated the credit card category the same as any other one and I guess that was wrong.  I have my last two payments as available.  But I've already paid them.  My balance is all messed up now.

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  • We’re going to need more information than that to tell you where you went wrong, but he short version is that if you pay your card in full each month, the amount in the credit card category needs to be equal to the amount charged on the card but positive. So if the card balance is -$1234.56, the category needs $1234.56 in it. 
     

    Budget whatever you need to budget in order to make that true, and then take the next credit card webinar which will probably be later today. 

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  • I paid 265.23 last month and 339.43 today.  My category shows 339.43 budgeted, -339.43 activity and 604.66 available.  Nothing should be available since i paid it.

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      • WordTenor
      • Can we agree that goals are dumb and immature? Sure.
      • WordTenor
      • 4 mths ago
      • Reported - view

      Pink Koala What is the amount owed on the card right this minute?

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

      (the account balance)

      Like 1
  • Pink Koala said:
    So I treated the credit card category the same as any other one

    That's actually correct. Funds need to be reserved for that CC payment before you make it, just like the Electric category reserves payment for the Electric bill. If you want to have paid-in-full status -- or at least be able to pay the account in full -- the Available has to cover the entire debt (account balance). There are a number of reasons for sending them only what they've requested (the statement balance).

    Like 2
  • Hey there Pink Koala 😊It sounds like you have more available in the payment column of your Credit Card Payment category, is that right? There are a few reasons this can happen, such as overbudgeting, cash back rewards, and returns/refunds. Definitely feel free to give us some more detail and we can keep helping you work this out! 

    Ultimately, if you pay your card in full, you'll want to be sure that the positive available amount in your Credit Card Payment category matches the negative balance on the credit card, as has already been mentioned. I would also highly recommend checking out our "Master Credit Cards With Your Budget" workshop if you're able!

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  • The title of your post makes it sound like you put an amount in the Budgeted column of the CC to budget for your payment. Correct? If your card is paid in full you don't (usually) need to put anything in the Budgeted column (except for when you're first setting it up).

    Whenever you use a CC for a budgeted purchase YNAB will remove that amount from the category (for example, groceries) and move it up to the CC Payment category, where it sits until you make your payment. No need to budget for it in the CC, it was already budgeted for in Groceries...

    Like 1
  • Is the CC account balance wrong, or just the Available amount in the category?

    Did you enter the payment as a transfer from checking to the CC, or just as an outflow from checking?  The outflow would mess up the account balance as well as the Available.

    Did you budget directly to the card category when there was already money Available? That would double the Available without affecting the account balance.

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  • My balance as of today is $2330.90 but I have scheduled a payment of 339.43 and it will post i assume monday.  I also have 35.59 in rewards that i could also use.  In my availble column i have 604.66 which is the 339.43 and last months payment of 265.23.  Ynab shows my capital one balance as 2033.42

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      • WordTenor
      • Can we agree that goals are dumb and immature? Sure.
      • WordTenor
      • 4 mths ago
      • 1
      • Reported - view

      Pink Koala 

      (note that I am assuming your account balances are negative because this is a credit card) 

      1. You're out of balance between YNAB and your real account by $297.56. You either need to go digging for this discrepancy, which may be in the starting balance, or you can use the reconciliation adjustment tool. Click "reconcile," enter today's balance ($2330.90), and YNAB will enter a negative transaction of $297.56.

      2. It strikes me that if you have $604 and are paying $339 that you are not currently paying this card in full each month. In this case, yes you do need to budget to the card each month. What you are budgeting for, however, is not your transactions this month; it's the debt you came into YNAB with.  Each month, your credit card category will consist of two types of budgeting. 

      -You'll budget for your old debt. Say, each month, you decide to set aside $200 of your current money to pay back your old debt. You'll add this to the category by budgeting and the category available will go up by $200.

      -You'll add via budgeted spending. Each time you swipe your card and categorize the resulting transaction to a budgeted category, that money will move to the credit card available. Spend $50 on groceries, groceries will go down by $50 and the credit card available will go up by $50. 

      If those two things were the only things you did, your category available would be $250. ALL of that money needs to be sent to the card to reduce your debt. All of it is safe to send to your card without disrupting the rest of your budget. 

      So. Right now, you need to go increase your payment that is scheduled for tomorrow to be $604.66. Then you should try to find as much money as possible in your budget to budget for the card balance which will remain. That might be $0, that might be the entire $1726.24. Only when you have the entire card balance set aside in the card category are you paid in full; if you aren't in that status, you should pay as much as you possibly can each month, not just what you are billed. 

      Like 1
      • WordTenor
      • Can we agree that goals are dumb and immature? Sure.
      • WordTenor
      • 4 mths ago
      • Reported - view

      And a shorter follow-on question--just to be certain, you did record last month's $265 payment as a transfer from checking to credit, correct? That is the only way that the transaction affects the credit card category. Make sure you check that first. 

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      • WordTenor
      • Can we agree that goals are dumb and immature? Sure.
      • WordTenor
      • 4 mths ago
      • Reported - view

      And finally, if you are carrying a balance on your card, it's not worth it to keep using it for other spending. The interest is too high and it becomes accumulating immediately. So even though it is true that YNAB will help you keep track of spending you do on a card that is already in debt, this is not financially smart to do and it's a bad idea to do it. This greatly simplifies the above process because each month, you'll budget for the old debt and then pay down the old debt until the card balance is $0. 

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      • dakinemaui
      • dakinemaui
      • 4 mths ago
      • Reported - view

      Pink Koala You are $1726.24 short of paid-in-full status within YNAB. (This is after you make the YNAB account match the real world. Currently they don't, which is a problem.) Are you working your way out of debt? Do that by budgeting toward the CC Payment category, which narrows the gap between the account balance and the Available payment.

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  • I actually hate using credit cards.  Had a workvan issue and didn't want to use my emergency fund.  Will probalby just pay it off.

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      • WordTenor
      • Can we agree that goals are dumb and immature? Sure.
      • WordTenor
      • 4 mths ago
      • 1
      • Reported - view

      Pink Koala Add  $1726.24 to your card category budget then, and pay it off. If you can't afford to do that without shorting other categories to the point you don't have money you need, then you can't pay off the card right now. 

      Like 1
  • Thank you.  I have scheduled the course for monday.  I want to master Ynab

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  • Can I delete the Credit Card category and the credit card account in ynab and just start over when everything clears

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      • WordTenor
      • Can we agree that goals are dumb and immature? Sure.
      • WordTenor
      • 4 mths ago
      • Reported - view

      Pink Koala Yes, if you aren't planning to use the card. In fact, you don't have to wait for everything to clear, even. You'll create a category for "credit card" under the "debt" category group and each month you'll budget the amount you are paying off and pay that amount just like it is any other bill. Track the account balance by looking at the credit card's website. 

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      • satcook
      • satcook
      • 4 mths ago
      • Reported - view

      Pink Koala you still have to find $1700+ in your budget to pay off the card 

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  • Pink Koala said:
    I want to master Ynab

     Good idea. If you can master YNAB, you will master your finances. Guaranteed.

    Like 3
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