Ho to handle paying off debt from a previous month.

Last month I purchased a vehicle on a credit card and now am in a new month. I will be paying it off by next month. But, with the new change the debt in the category does not carry over. How do I apply the payment in YNAB? Can I say, apply money earned this month to the debt category last month so that that orange colored balance reduces, or do I just apply it to the card this month? Does this make since?



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    • HappyDance
    • YNABing consistently since 2014
    • HappyDance
    • 1 yr ago
    • 3
    • Reported - view

    You can go back to last month and move funds from categories with money to the car category. This will then release funds from other jobs to pay the credit card.

    Or you can budget from this month's income to credit card payment category. It should be at the top of your budget screen.

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  • Hi Dr. J !

    Michele is spot on! You can cover the payment last month if you have the income available, if not, you'll want to budget directly towards your credit card category in the current month.

    When there's credit overspending (shown in yellow in your budget) that amount carries over on the balance of your credit card. Budgeting directly towards the credit card category sets money aside to pay towards that debt in future months.

    To learn more about how credit cards work in the new YNAB, take a look at our Quick Start Guide to Credit Cards and consider taking our Master Credit Cards with your Budget workshop! :)

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