Credit card overspending category (no judgment pls!)
We intentionally put a purchase on a credit card - but we are carrying debt and will not be paying it off this month, as there is a plan in place. (Backstory - newer YNAB users - true expenses aren't funded yet - vet emergency - we put it on the lowest interest rate card, but are avalanching the higher interest rate card first.)
So, my credit cards are linked (checking isn't - I'm doing that one manually), and the payment just showed up. YNAB is asking for a category - how do I categorize it?
Create a Vet category (if it's not already there) and use that. That's why you spent money.
Down the road, you'll eventually want to make a larger CC payment (above and beyond what YNAB automatically reserves for budgeted purchases), so budget toward the CC Payment category to enable that. You will be back to paid-in-full status when the CC Payment category will cover the entire account balance.
if it is still negative at the end of the month, YNAB will convert the negative amount to credit card debt
Viewpoints on this vary. As I see it, it's debt the moment you swipe the card. YNAB will automatically reserve money for budgeted purchases, including retro-actively within the same month. After that, you'll need to budget toward debt reduction if you want to reduce the debt any further.