Checking transaction affecting credit card budget

I could not find a topic that matched my issue so here goes.

This morning, I used my checking account debit card for two small unanticipated expenses: $1.53 and $1.75. They are recorded as transactions in my checking account; however, I am showing a -$3.28 available on one of my credit card accounts. I just yesterday made a payment on that CC which took my available to zero.

Those 2 purchases had not been put into my budget, so I was going to move some money from other categories to cover, but it should not go toward my CC since I didn't use my CC.

Any ideas?

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  • Cover the categories for the unanticipated expenses so that they're not overspent. YNAB is currently assuming that you intentionally created debt on your credit card to pay for the two debit card purchases.

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  • Once you move money to cover the overspent categories, the cc will correct itself.

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  • You must have previously used the credit card for transactions in those categories. That's why YNAB turned the overspending into a debt on the card. The red negative on the card means you paid more than was budgeted. Once you cover the overspending that will clear up too.

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  • Thanks everyone! I appreciate the help. Covering those categories then entering the transactions worked.

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      • satcook
      • satcook
      • 1 yr ago
      • 2
      • Reported - view

      Powder Blue Case covering after the fact would have had the same results, just so you know for the future. 

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      • misfitmw
      • Nonprofit
      • misfitmw
      • 1 yr ago
      • 1
      • Reported - view

      satcook Thank you. It sort of all makes sense now. I had never had that happen before. Still learning. :)

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    • misfitmw 

      I can give you a bit more detail here, just for your knowledge as you're learning!

       

      In any given category, YNAB will always budget for cash spending first, because those dollars are gone-gone, even if it occurs after credit spending.  Then the remaining Available amount covers any credit spending.

      So, even though the transaction that overspent the category was from your checking account, the overspending was considered credit overspending. That's why your Credit Card Payment category was impacted.

      This will happen when you've used a credit card and a cash account in the same category. You can confirm this is the case by clicking on the Activity amount in those categories. 

      Essentially, this is YNAB's way of prioritizing your debt to a credit card in order to protect your cash flow, because credit cards can acquire debt but your checking account can't.

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  • Cash purchases are prioritized over credit with a given category, leading to a reduction of the CC Payment category. You may not have noticed it except for the fact you recently paid your CC bill taking the category to $0. Others have covered all this.

    So this automatic conversion of cash overspending to credit overspending is a feature. Unfortunately, it only happens within a given category where both types of transactions are present. Trying to do this budget-wide would likely be confusing.

    However, one can easily convert manually by covering red overspending from a green CC Payment category. An explicit debt increase like this also comes in handy to turn off credit overspending warnings. I hate to be nagged for the entire month when it was my choice to finance a purchase.

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  • 1 yr agoLast active
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