Paying off CC in full each month

Hi,

If I pay my full credit card balance off automatically each month, should my green amount in "available" agree to the amount I'm going to pay? I have two credit cards and it matches for one but not the other.

For the 2nd card the green "available" figure is half of what I am actually going to pay, does this mean I am under budgeted for this payment?

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  • For a paid in full credit card the available bubble should match the balance due on the card. 

    Like 2
      • dakinemaui
      • dakinemaui
      • 2 yrs ago
      • 1
      • Reported - view
      satcook said:
      the available bubble should match the balance due on the card.

      I think most people would take "balance due" to mean the amount the CC has requested that you pay by the due date -- a.k.a., the "statement balance". When there are transactions made after that statement was generated, the Payment category available needs to cover those as well (or else you'll be short when the next statement is generated).

      In summary, the Payment category Available for a card with "paid-in-full" status should match the entire debt which is the entire account balance. It's common to only send them the amount for which they billed you, which will leave money in the category to cover next month's payment. However, if you want to pay the entire account "in-full" -- resulting in a debt/account balance of $0 -- you may do so without issue because the category has that entire amount reserved.

      Like 1
  • It should match the account balance on the left side of your screen under the list of accounts (though the account will be negative and your category amount should be positive). 

    Like 5
  • Are you over budget in any categories where you use credit cards? If so, thats why the numbers don't match.  Because you don't really have that money to pay your credit card.  Once you move money to these negative categories, your payment amount should match.

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  • Thanks, I'm not over budget in any of my spending categories. I think the issue must be with when I brought the balance in to YNAB to start?

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      • Peter
      • Professional Designer, Web Developer
      • lasty
      • 2 yrs ago
      • 1
      • Reported - view

      Pale Tiger yeah, when you bring the balance into YNAB initially and you pay your card off in full each month you need to budget for the full payment amount manually.

      You can easily correct it by budgeting more to the underfunded credit card category now and you should be good to go from then on.

      Like 1
    • Pale Tiger I just wanted to add on a bit to what Peter mentioned! :)

      If you have an outstanding balance on a credit card when you set it up in YNAB, and you plan to pay that in full, you’ll need to budget for it in the Credit Card Payments category. That’s what lets the budget know you plan to take some of the money you have and use it to pay off that existing balance. Here’s a video explaining how this works.

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