Overpaid credit card and now everything is broke
Ok so I have linked my amazon credit card to YNAB. Had a balance of $173.20 coming due so i set up a bill pay through my bank to pay the full amount. Then I bought more stuff before the bill was due and forgot about the original bill pay and set up another bill pay for the new balance full amount. These payments both went through on 8/3. Making the extra payment isn't an issue for me, I can cover those funds. I originally didn't think it was a big deal, googled and saw that YNAB treats and overpayment like extra cash and indeed I had that additional money in my ready to assign. Google/Reddit said to assign it to the credit card category, which I think I did. Everything seemed fine.
Rather than wait on the bank to send me a refund check, I needed more stuff from amazon(don't we all lol) so I purchased stuff for close to what my credit was. I wasn't really trying to be precise. if i went over a little no big deal and in fact I went over and now have a balance of -$6.41 on the card.
I didn't notice(because the category I assigned the purchases to requires me to scroll to see it and I had no need to at the time) till a couple weeks later when i went to budget my next paycheck into september I noticed it shows I had a negative balance in read to be assigned for september. So i go back to August and sure enough the category i assigned the most recent amazon charges to is red and not red like I over spent with credit, red as in the category is underfunded, because it was, why fund it when the credit on the card will cover it(maybe a mistake in thinking). So then i tried moving funds to that category to cover it, but, and I'm not sure if this is because YNAB sees the credit available on the card, it will not pull funds from that category to cover the cost of the new purchases.
Long story i know, but heres where I am at. YNAB thankfully has done wonders and gotten me to a place where I can easily cover issues like this. All I need to know is the proper way to make YNAB think everything is ok and paid for and no red underfunded or negative ready to assign for september. I am happy to provide screenshots of whatever you need to see if it helps.
If I can't find a more correct solution. I am thinking if I just delete the extra payment transaction and instead assign those funds(plus the extra $6.41 I spent) to the category i spent from I feel like that will fix everything, but will probably cause some issues with reporting and I'm not sure what else. So I would prefer not to do this, but I am stuck on how to fix it. Also posted a similar post on the YNAB sub on reddit and got help but not a solution. Thanks!
You've got it and seem to understand the points at which things got off.
Since we're still in August do two things:
1. Cover any category overspending.
2. Make the CC Payment category's available equal the absolute value (positive equivalent) of your up to date working balance by assigning money directly to the category.
Sorry for the multiple replies, don't see a way to edit my original post. But when i say everything is broke now, even that extra $6.41 I spent, won't pull those funds from the category to the credit card. So it shows I have an overspend on the credit card account and the only way I see to fix that is to assign the $6.41 directly to the card category
But when i say everything is broke now, even that extra $6.41 I spent, won't pull those funds from the category to the credit card. So it shows I have an overspend on the credit card account and the only way I see to fix that is to assign the $6.41 directly to the card category
The 6.41 was treated as cash spending because the card had a positive balance, so it wasn't sent to the card category. You still have to budget to the original category for cash spending.
A separate, but simultaneous issue was the overpayment to the card that also unfunded. Move money to the card itself to fix it, as you said.
The overspending should in effect be covered by the overpayment/credit available on the card.
Incorrect. You still have to budget/assign money in a spending category to fund cash spending.
where does that leave me
Don't you have a negative credit card balance now? So, you'll just wait until the statement is due, using the card normally, and pay the statement balance on the due date?
basically paid for those things twice???
No. When the card went positive, you overspent the payment category doing so, and you needed to fund it in the budget.
my brain says I had free money on the card
It wasn't free money, though (see above explanation about fungibility and multiple accounts).
Hey KrypticPhish ! I agree with Move Light Sound Life that the best way to avoid these budgeting gymnastics is to pay your statement balance, all the while ensuring that your Credit Card Payment category is a green and positive match of the amount you owe on the card. If you instead pay in FULL, and include any pending charges without entering those in YNAB, that can cause your credit card to go into positive territory in the app. In these cases you'll always need to move money to your Credit Card Payment category from Ready to Assign. You aren't losing money or double budgeting either way, but you are losing time and brain power (which I prefer to conserve 😅)