Negative bank account

Greetings from Brazil!


As I'm using YNAB from outside the US, it is possible that I could use some different financial language , but let me try...

I am starting my budget and unfortunately I am on debt. To begin with, I am using a direct credit line in my bank account, i.e. - I have a direct bank account credit limit of 20k, of which I`ve spent 5k, in other words I have a negative balance of 5k.

In such situation, what should be filled in the bank account to be budgeted? 15k (remaining value of the credit line), zero, or -5k (limit used so far)?  

Unfortunately for the next few months I will need to continue using the bank account credit limit, and some payments should increase the negative balance.

Thank you,


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  • A good general principle when using YNAB is to reflect reality as much as possible.

    In this case when you add your bank account you should make the account type "Line of Credit" and set the balance to -5k.

    Reply Like 1
    • Rodrigo
    • Dreamer
    • Gold_Packet.2
    • 10 mths ago
    • Reported - view

    Got it, so the rationale for a bank account line of credit seems to be pretty close to a Credit Card account, right? 


    Reply Like
    • Hi Rodrigo !

      In YNAB a line of credit and a credit card are treated the same. You should create a Line of Credit account if a negative in that account causes you to be overspent in credit and not in cash. 

      For instance, if you have a Cash or Debit account in YNAB that's in the negative by -$10 and another account that has $40 in it, you'll only see $30 to budget. On the other hand, if you have a Line of Credit account that's in the negative by -$10 and another account that has $40 in it, you'll see the full $40 to budget because negative amounts on a credit account can be paid at a later date.

      Does that help clear things up?

      Reply Like
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