Help! Overpaid CC... now what?

Ok, as the title says, I have accidentally overpaid my credit card.  So the credit card account is green, but the credit card category is screaming red, and it has added a bunch of extra money to my "available to budget".  I'm willing to leave the money on the credit card and use it to pay off things as I charge them, since I do most of my spending through that card.  So in essence, I have just prepaid the month.  But how do I get it to not be available in the "available to budget"?  Just assign the amount that is on the card in the account to CC category?

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  • move the money from To Be Budgeted to the CC payment category since that money's job is to pay for CC purchases.

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  • The payment category is negative/red as a warning, but you still have the same amount of cash. (A positive CC is effectively a cash account.) That means the decrease in the Payment category must be offset by an increase elsewhere, namely TBB.

    Just budget those seemingly new funds to clear the warning. The CC Payment category Available should be $0, since you don't have to pay anything back right now.

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  • I did the same thing!  I am so confused by the two answers that you have received so far.  

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    • Tomato Cartridge Can you elaborate on your confusion? The bottom line is to eliminate the red, but we're happy to explain further for your situation. Do note that the OP took their account balance positive, which may not be the case with you. This would change the explanation, but not the need to eliminate the red -- Rule 3 always applies.

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    • dakinemaui did you see my reply?  

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    • dakinemaui I explained that I am new to YNAB (started in November).  We have a checking account and a credit card through USAA Bank.  That is our one credit card that currently has any amount owed, and we plan on paying it off ASAP.  We also have a Costco Citibank Visa with less favorable terms than USAA;  we use this card infrequently, and pay it off immediately (not at the end of a month, or at the time of the credit card statement, but immediately).   When I set up our YNAB account, we linked the USAA bank account and credit card;  we didn't link the Costco Citibank Visa. We recently bought cell phones at Costco, and used the Costco Citibank Visa.   I immediately came home and made a full payment using our USAA checking account bill pay.  Either that day or the next, my husband made another full payment using our USAA checking account bill pay, resulting in a $1200 credit on our Costco Visa.  We do shop at Costco pretty often, and we had the money in the checking account to cover the second payment.  My husband and I agree that we will just use that credit balance to pay for Costco purchases over the next few months.  I would like to figure out how to track expenses on that Costco Visa credit balanace as we draw it down over a few months.   I can't figure out the YNAB credit card stuff even without this mistake.  I might just start all over in January.  

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      • dakinemaui
      • dakinemaui
      • 11 mths ago
      • Reported - view

      Tomato Cartridge 

      1. Record the 3 actual transactions that occurred.

      2. As I described for the OP, the 2nd payment did two things: decrease the Payment category (taking it negative) and increased TBB. Use those seemingly new funds to fix the now negative Payment category. If you didn't notice TBB was increased, you may have budgeted those funds elsewhere; if so, reallocate from there to fix the red.

      If you doubt that TBB increased, feel free to record another payment as a test, making the Costco account even more positive and increasing TBB. Undo or delete afterward.

      Moving forward, the Costco CC will act like a debit card while that account is positive. No funds will move to the Payment category, as it doesn't need to be paid back.

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      • RocketBran
      • rocketbran
      • 11 mths ago
      • Reported - view

      dakinemaui I have had conflicting experiences and just discovered something in my sandbox budget: any spending of the excess CC inflow on the same day the inflow occurred, WILL affect the payment category. Any spending on a date following, will do as you say.

      - CC starts with $0

      - CC $600 outflow 12/2

      - CC $1200 inflow from checking 12/3, payment category goes red, TBB is +$600, add that back to CC payment

      - CC $200 outflow,

      --- if 12/4, then behaves as you say, CC payment remains 0, spending category drops $200.

      --- if 12/3, then CC payment is now +$200, TBB is -$200, move $200 from CC payment to TBB to fix.

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      • dakinemaui
      • dakinemaui
      • 11 mths ago
      • Reported - view

      Matthew is this new?  I thought transactions were supposed to be applied from largest inflow to largest outflow on a given day. The above description indicates outflows are processed first.

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      • dakinemaui
      • dakinemaui
      • 11 mths ago
      • Reported - view

      Aquamarine Rhythm Given your test results, I suggest you fudge the dates so the inflow is before the outflows.

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    • dakinemaui I don't think this did anything to my "Payment category" in credit cards because it was never linked.  If you were here to hold my hand to do this right, I think I could probably figure it out.  However, I am not yet savvy in the ways of YNAB.  Since it was easy to do, I redid my budget.  I actually had another issue that came up with my initial budget that I couldn't get rid of, so I am happy with this solution.  Above all, I think that using YNAB -- even for only a month -- resulted in a buffer in our account that easily covered this second payment.  Woo-hoo!  Here's to 2021, and sticking with YNAB!  Thank you for trying to help me.  :) 

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