How to Manage Payoff Goal for CC Debt w/ Recurring Monthly Charges

I've been watching the YNAB videos, and I haven't found the answer to my specific scenario. Let me provide the scenario:

1. The balance on my card is $3,500. If I were to set a goal to pay down this debt at $500/month, which is what I want to do, this debt would disappear in 7 months.

2. On that credit card, I also have a few recurring transactions (Hulu, Disney+, etc.).

3. When those recurring transactions are imported into YNAB, I have them classified as Software Subscriptions, and they are added to my card balance.  So for Hulu, once it imports, the $11.99 is taken from my budget for software subscriptions and is moved to my budget for my credit card.

4. If this transaction imports into YNAB before I am able to fund that $500 goal for the month, will YNAB see that $11.99 move as me putting $11.99 towards my $500 monthly goal (In other words, will YNAB say "great! You just need to budget another $488.01.")? Or will YNAB recognize that this move is separate and apart from my desire to pay off $500 of the existing balance every month?


Some insight on this would be helpful. I would like to pay $500 towards my balance, over and above the recurring charges every month.

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  • Hi Highlander89 !

    That goal should work just as you were hoping! :)

    The recurring charges will not be subtracted from the amount you entered as your goal, it would be included in your credit card in addition to the $500. So, the $11.99 will move to the credit card category and, once you budget the $500, you'll have a total of $511.99 available to pay towards your credit card balance.

    You can read more about our Credit Card Goals here. :)

  • By budgeting for debt reduction (i.e., in the CC Payment category), you increase the Available payment amount above and beyond that which is automatically reserved for recent budgeted purchases. Obviously, credit (overspending) will set you back, so about that when possible. Just don't pay more than what is in the category. 

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