Credit Card Special Financing

Hey y'all,

I've searched everywhere for this topic and couldn't find it so I apologize if it's been addressed already.  I have a credit card that I pay off every month.  I was recently sent a special "same as cash" financing promotion.  I made a purchase and I have deferred interest for a number of months.  I can easily cover the payments from another category.  However YNAB wants a category for the purchase for the whole amount which affects my "to be budgeted" amount.  How do I show the increase balance on the credit card without affecting the "to be budgeted" amount?

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  • The category should show overspent in yellow if you don't have enough funds. TBB would not be affected.

    Within the budget, you have a choice:

    • Reallocate from some other category (immediately reserving funds to pay off the promo) and increase the contribution level to that category going forward if you have to hit a known amount/deadline. Ideally, you would delay that other spending or reduce scope (amount). Payoff the promo anytime before it expires.
    • Don't reallocate and just leave the overspending. You will need to budget toward the CC Payment category so that you have sufficient funds by the promo expiration. Ideally, you would have paid-in-full status (payment category covering the entire debt / working account balance). Alternatively, you can avoid interest if you get to the point where you can ride the CC float (payment category covering the statement balance by the due date); continue toward paid-in-full status after that.
  • Awesome, thank you!

    Like 1
  • I have a similar situation. I have a special financing promotion for a $600 purchase over 18 months. It's an equal-pay promotion, so I have to pay about $34 each month. I let the purchase stay overspent, and now for the next 18 months, I have a goal set to move $34 each month. The issue I have is that when I budget $34 to the category, I then need to move it to the credit card payment account. When I do so, the goal is "undone" and then wants me to still move $34 back.
    Does anyone have suggestions on a better way to manage that?

      • Bruce
      • Software Engineer
      • Bruce
      • 3 wk ago
      • 2
      • Reported - view

      Hayden Try putting the goal on the credit card payment category.  The money's already spent, and turned into debt.  You don't need to budget towards it again anymore.  Unless you expect it to be a recurring expense, in which case you can put a goal to accumulate money towards the next time.

      But since it's been turned into debt, if you put a goal on the credit card payment category then you'll be able to  budget the money into that category, and it will be there for the payment each month.

      Like 2
    • Bruce +1. At this point you are paying off debt, so budget toward that (in the CC Payment category). The specific cause of that debt is immaterial.

      Set a Payoff Goal in the CC to help get back to paid-in-full status by the target date. That means funds are reserved that cover the account balance. Make the payments as needed, since the category should cover them.

    • Hayden one caution aside from YNAB: my experience is these special financing deals eliminate the grace period for OTHER new purchases. They would start incurring interest immediately.

      So just a FWIW, you might give the CC a call to confirm either way for your particular situation.

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