Rolling over Credit Card Next Month's Credit Payment

I thought that however much I overspend in credit for the month of October will be the amount I need to assign in my credit card payments in November.  However, I'm showing I overspent $600 in credit in October but have to assign/budget $1400 for my credit card in November?  Trying to understand why these amounts might be different?  

I prefer doing it this way (vs adding more to my budget) to see how much I overspend each month.  

Thanks,

Matt

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  • I think what you're describing is when an overspent credit card rolls over, YNAB assumes you will now be carrying that balance on your card. You'll need to manually add the shortfall in November to your payment to bring it back to 0.

    I run into the same issue from time to time and it can be confusing. I'm curious if other people have a better way to handle it.

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  • The two numbers you're looking at generally won't match, and don't have a simple relationship.  This is partly because your credit card billing cycle doesn't close on the month boundary, and partly because of the 3 weeks or so grace period you get between the statement date and the due date, and the float.  It's also affected by whether you're assigning money just to cover the bill, or to cover the entire balance (YNAB paid-in-full).

    For instance: I get my Amex bill on the 4th, it's due on the 27th, and I'm on the float.  On 10/4, I may not have enough in the CC category to pay the bill.  Throughout October and the first 3 days of November, I use the card for budgeted spending, and YNAB moves money to the CC category.  That money is meant for the bill due on 11/27, which has October spending on it.  But I'm going to use some of it to pay the bill due on 10/27, which is September spending.  The 11/27 bill will get whatever's left over, plus some of the money that should have gone to the 12/27 bill.

    Here's the tricky part:  if I spend a lot in October, there will be a lot of money available for the CC on 10/27.  But if I spent a lot in September (so the 10/27 bill is big) and don't spend much in October (so not much moves to the category), the CC category will be short and I'll have to assign more.  How short it is depends on how different my spending was between September and October.

    If you have overspending, the short in the category will be not just that month's overspending, but also the amount of the float, which depends on relative spending over multiple months.  If you routinely allow overspending to roll into the next month, you're allowing float.

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  • Beige Moose Hey Matt! Is there an existing balance on the credit card that you're paying down (before October)?

    It sounds like the Credit Card Payment category in November is red and negative, and likely after a recent payment for October's spending + existing balance. Your budget is asking you to assign money to cover the money sent to the credit card company.

    Our support team can help dig into specific numbers, if you'd like to enable Support Access.

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