Accruing New Debt in nYNAB

Hi All, 

Happy New Year! I'd like to figure out how do I account for new debt transaction expenses that were unexpected on a CC.

We pay off our balance each month for typical expenses that we've budgeted for, but when the emergency dental work comes calling you have to pay up (speaking from experience--ouch on both fronts!)

I was reading that I just budget this expense as usual to a category letting it be in the "overspend" side and next month the credit card has a positive in the "Payment" category that I could begin chipping away at with budgeted amounts.

I think I have the right of that. My question is how do I (or do I even)  single out transactions I want to pay for from an overspent category vs new debt in that same category (that I wouldn't pay off in the month).

Maybe I'm overthinking, but it's probably just as simple transferring the amount budgeted/transferring the amount designated as payment?

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    • nolesrule
    • YNAB4 Evangelist
    • nolesrule
    • 1 yr ago
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    You wouldn't single out transactions. You either can budget for some of the overspending in the category to reduce the overspending amount (and it'll shift to the CC payment), or budget for the debt paydown in the CC payment category. Either way gets you to the same place.

    Reply Like 1
  • Hi flame3912 !

    Sorry to hear about the pain (I hate the dentist)!

    When there is cash and credit spending in the same category, cash spending takes precedence. So if you have $20 budgeted towards Dining Out, and you spend $15 in cash and $10 in credit, the category will show you're overspent by $5 in credit. There isn't a way to specify which transactions you'd rather that cover. Or, if that $10 credit spending was actually two separate transactions (let's say one for $7 and one for $3), it doesn't matter which one you consider "covered" since there's still overspending.

    Following the above example, I could budget $2 towards the credit card category in the following month to cover a portion of that overspending from the previous month. I'd still have an outstanding balance of another $3 (to total the $5 overspending) and I can budget that in the next month to fully pay things off.

    When dealing with bigger numbers it's the same principal, just on a larger scale. So instead of budgeting an extra $2 towards the credit card category to cover overspending from previous months, you may budget $20 or $200, etc.

    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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  • flame3912

    I'm going to mark this as answered, but if you still have questions, just mention me in a comment and I'll get back to you! :)

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  • 1 yr agoLast active
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