managing paying off a loan with a line of credit
New to YNAB. I have a Line of Credit with a really good rate. I used this LOC to pay-off a high interest loan. I created an account for the loan and showed the transfer going out of my Line of Credit into the Loan Account that now has a $0 balance. When I did this, it now shows that I over spent by that pay-off amount in my budget....Is there a way to clear that out so it doesn't look like I overspent? Or is this just going to show as an outlier for this month? How do I clear that category?
You would add the funds to the LOC that you need to pay off the loan. This will increase your To be Budgeted by that amount. Budget that amount for the loan payoff category. When you make the transfer, you will end up with a zero balance in that category.
Bottom line is you need to add funds to your budget via the LOC to make the loan payoff.
It sounds to me like the account you created was not a credit-based account. A payment/transfer from a credit account will not impact the destination account's Payment category.
To verify, do you have a category for the new account (the LOC) under the CC Payments group? If not, then the above is the cause, and you'll need to delete & recreate the account correctly.
Lastly, reallocate any funds from the old Payment category to the new. It should be $0 if the account balance is $0.