Credit Card Payments

New to NYAB, and finding out there is a huge learning curve to this type of budgeting! Loving it so far, though!

I can't figure out exactly how I should be doing credit card payments.  When I set up my budget at the beginning of the month, I budgeted for a $175 payment to Visa.    That made my "activity" $175, and my "available" $0.  I could follow that. The payment was made with two transactions; $140 towards the running balance, and $35 for monthly auto-payments for streaming services. The split payment was part of my OLD bookkeeping ways!

But then....

A transaction pulled thru directly from Visa.  $14.08 for Netflix (see above).  I do have a category for those auto-paid "Streaming Services"  ($35 budgeted).  So, now I see Streaming Services: B$35, Act. -$14.08, Av. $20.92.  That makes sense.   Visa is now: B$175, Act. -$160.92,  Av. $14.08

What I can't wrap my mind around is how I budget for the Credit Card payments when the transactions going thru make it look like I still need to pay.  Do I need to get one month ahead of those auto-transactions? Do I have a category within my Budget (not part of CCs) for the actual Credit Card payment?

And I won't even get started on trying to figure out the "Interest & Fees" that now make me look like I have a negative balance in my TBB.

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  • So, if you're a Paid In Full (PIF) CC user, you only budget for your starting balance of your old bookkeeping ways.  After that, you budget for every purchase you make in its respective category as you make it.  YNAB then moves money from your Streaming Services category to your CC category to set it aside to make your CC payment when you're ready. PIF CC users always keep their CC category available equal to the amount they owe on the CC account, which usually doesn't require budgeting directly to the CC category.

    Now, if trying to budget all of these things is making your TBB red, but you're not paying interest, you're on the CC float (there are articles about that on the YNAB blog).  The way to get off of it is to keep making budgeted purchases such that there is always more money to cover old purchases, and budget more as you can to the CC until the available is equal to the amount you owe.

    However, it seems you are paying interest, so you have some debt to pay off.  What you do in this situation is to budget for your normal spending (including interest, which should show as a spending transaction in the interest category), let YNAB move that money to your CC available, and budget as much as you can to the CC category to pay down the debt. 

    If you can't do that without making TBB go red (you should never, ever, leave TBB red, or any other categories red, for that matter), then reallocate money from other, lower priority categories.  If there are no categories to reallocate from, you can move from your CC available category.  Just keep in mind what the minimum payment is, and know that you'll need to pay back that debt later when you can.

    Did I get your situation with one of those scenarios?

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  • Oops! Was this supposed to go under Q&A; Credit Cards? I see no way to edit/delete this post. Sorry!

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  • Closing this topic because it's a duplicate. Here's the rest of the conversation! https://support.youneedabudget.com/t/83hqyc2/budgeting-credit-cards

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