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?
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.Reply