Help with credit card payments & too much available to be budgeted
Hello, I need to figure out what I'm doing wrong with the way I pay my credit cards, because I keep getting confused. I pay my two credit cards off in full every month. This happens via autopayment. Now, today's payment was withdrawn from my checking and applied to my credit card account, and all of a sudden I have $350-odd more in available funds and a $350-odd red in the available column of my budget.
Why is this happening? All my expenses are accounted for, and I don't want to spend or allocate this $350 because it's not really available.
I've been using YNAB for about five months and have had to do a fresh start several times because of credit card issues (can't recall what they all were). I'm determined to figure this out!
Also (and possibly related), is there a way for me to check and make sure my cc account is set up as a cc account and not some other sort of account? It shows up as a payment from my checking account and a payment to my credit card, so that's all correct, right? It shouldn't be a transfer?
Following up, when I clicked on the red amount, I got a notice saying my payment was greater than I had budgeted for and where would I like to take the extra amount from, so I moved it from my "available" to be budgeted - but I don't understand why this happened. I'm exact with my budgeting and spending. Does it have to do with expenses made in one month and paid for in another?Reply
Lavender Trombone said:
Does it have to do with expenses made in one month and paid for in another?
Honing in on this question specifically. Is this by any chance a reimbursement that you are recording as income and that is being used to pay the credit card?Reply
HI Lavender Trombone !
When your Credit Card Payment category is red, it means you made a payment for more than you had "available" in your Payment column. Here's a video explaining the following reasons why this can happen:
- Overspending. If you had any credit card overspending in your budget (in the current or a previous month), the Payment amount would be lower than the balance due. If you still paid the full amount, you’ll have spent more on your credit card payment than you had budgeted.
- Starting Balance. If you had an outstanding balance on a credit card when you set it up in YNAB, and you paid that in full but didn't budget for it in the Credit Card Payments category, it'll show your Credit Card Payment category as overspent. Budgeting for that balance in your Credit Card Payment category 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.
- Overpayment. If your payment created a positive balance on a card, the positive balance is treated like cash and is added to To be Budgeted. Budgeting those dollars directly to the Credit Card Payment category will bring it out of the red.
- Returns/Refunds. If you had any returns/refunds on this card, and you paid off your card between your original purchase and your refund, you might see that your payment category is short and goes red.
That should help pin point what caused the overspending. If you already moved money to cover the overspending, you should be good to go! In the future, double check your credit card Available amount before making your payment. If you have $20 Available in your credit card category but you want to make a $25 payment, you'd need to budget $5 more so that you have the full $25 Available for the payment. :)Reply
Lavender Trombone said:
all of a sudden I have $350-odd more in available funds and a $350-odd red in the available column of my budget.
Offsetting amounts in TBB and the CC category will happen if the payment took the account balance positive. Why did that happen? Since it sounds like the real-world account went to $0, I wonder if your YNAB account balance is off. When was the last time you reconciled?Reply