Unexpected house repair
FYI - not sure if it matters, but I'm using YNAB classic
So, I need a new roof. The expense goes way beyond what I budgeted so far for housing expense. So far, I transferred $5000 from a credit card to my checking account. So now, my credit card is at -5000, and my bank account has more.
However, at this point I only have 1000 budgeted for housing repairs. When I write the check to the roofing company (6000), that's going to put my repairs budget to -5000, but my credit card is already at -5000.... I;m going to have to pay down the credit card, but that isn't going to also take card of my housing budget
I don't think I'm doing this right. How do I handle a large new expense that is mostly going on a credit card?
In the card’s pre-YNAB debt category, negative budget -5000. This will add 5000 to ATB, which you can then budget to the house category.
Two help docs:
I would have worked out the timing better. You pay interest on a credit card cash advance from the moment you draw the funds. I probably would have inquired about a financing option or delayed the cash advance until payment was due. You're probably paying $2.50 to $3.00 per day in interest from the moment you made the draw.
Many years ago in a previous house, we put a new roof on it. It cost about $4500. The roofing company offered us 0% interest financing for a certain amount of time, with an interest rate lower than a credit card after that. We took the deal and paid it off before we owed a cent in interest. Much cheaper than a cash advance on a credit card.