Credit Card Payment is higher than account balance
I pay off my credit card every month. I use the Credit Card category in the budget to make sure that I have enough budgeted each month to pay it off, so I'm only really paying attention to my (newly named) Payment amount in the budget and the Credit Card Account balance. When I make a payment I pay the total listed in the account balance, not the payment amount.
I've noticed over the past few months that even though I'm paying down the account balance down to $0 each month the payment amount in my budget is going up. Currently, the account balance is fully reconciled - I have no uncleared balance. I do have a working balance, we'll say $80 for the sake of discussion, and a payment amount of say $200. I have no scheduled transactions. Where is this $200 coming from? If I paid my credit card using the $200 then I'd be overpaying my account balance, right? I feel like I'm missing something about using credit cards in nYNAB.
Also, note that this is not new for me. I've always seemed to carry a higher budgeted/payment amount than what I actually seem to owe on the card so it's something I've been doing from square one.
Are you budgeting to the credit card payment category? If you are only doing budgeted spending, and you're not overspent, then each month you should be able to pay the card to zero and your card category should zero as well.
If you are a PIF user ( which you are according to what you described in your post) then at all times your credit card payment category should equal the opposite of the working balance on your account. Anything above this is excess that you have somehow budgeted to the category over time and can safely be moved.
Original post by Turf_Hacker in the old forums
For your reference, here are the reasons I've found that the credit card account & payment category balances diverge (paid in full cards):
- starting balance on a paid-in-full card - category is lower
- overspending - category is lower
- uncategorized transactions - category is lower
- outgoing transfers to other on-budget accounts (e.g., gift card account, mixed funding splits) - category is lower
- purchase/cash-back rewards (should be categorized to TBB) - category is higher
- categorizing item returns as TBB (should use the original spending category instead) - category is higher
- reconciliation adjustment - category is lower for an outflow adjustment, higher for an inflow adjustment
- taking the account balance positive - category should be $0 in this case
To correct the problem, budget whatever is needed to make them agree. Some of them can also be fixed other ways (e.g., overspending).
If you're carrying debt on your card, your card balance and category balance will not, and should not, match. You can see the amount of debt being carried at any time by clicking on the card's category and viewing the inspector: You'll see a line which reads, "If you pay [credit card payment category available] your account balance will be $X." That "X" is the amount of debt that is not presently budgeted to be paid off.
Hey Salmon Screwdiver (6492d5a43f8a) ,
The list in this thread is a great resource for pinpointing the cause of that inbalance. If paying the full Available balance would put a positive balance on the card, you can use the move money tool to put those funds where you actually need them.
If you can't pinpoint where those extra funds are coming from, you can always email support ( [email protected] ). With your permission, we can take a look at your account to find those details for you.
P.S. - PIF stands for Paid in Full in thise case. :)
I'm still confused.
My cleared balance is 0. Uncleared balance 0. Working balance 0. Actual credit card -- paid in full (every week). All payments go to credit card payment category. Everything categorized correctly (I've had this budget for less than 2 months, so it's easy to check).
But: Payment due = $17.48. Only in reality I have zero due. I've tried to create a work around but anything I do to get rid of the $17.48 also changes the cleared/uncleared/working balance categories. Any thoughts?
I have been racking my brain for the past few hours over this use case:
outgoing transfers to other on-budget accounts (e.g., gift card account, mixed funding splits) - category is lower
I have an on-budget account that's essentially a credit with my Virtual Private Server provider. I have a couple different categories for different VPS's, and I fund that account by making credit card payments on different cards, and then pay the card in full every month. Eventually the VPS provider charges that credit account the have with me. The VPN account needs to be on budget, and I transfer the funds from my credit card to the VPS when I make the payment.
Sure enough, I'm in the negative after my recent payment. I know that I have enough money in my checking account to cover this expense (since I'm basically just slowly transferring it over to my VPS), and I've used YNAB under the impression that it doesn't care where my money lives, as long as it has a job (and that $300's job is to pay my VPS).
I guess what I'm asking is, if it's on an on-budget account, is it fine if I ignore it being in the red when this happens?
Ivory Koala said:
Sure enough, I'm in the negative after my recent payment.
You should not send Chase more cash than is Available in its category. It doesn't matter if you have enough in your checking account to avoid overdraft. Some of those dollars have other jobs, and they cannot do those jobs now that Chase has them.
This is how it all worked in my head:
- $500 in checking account, my "VPS A" category has $250 in it. "VPS B" has $50.
- My VPS charges my credit card $300. My credit card is -$300 but all $300 goes into the VPS's account. The job of that $250 of that $300 is to pay VPS A and the other $50 is to pay VPS B, so both categories remain unchanged.
- Credit card payment charges my checking account $300. Checking account has $200 left.
- VPS charges me $25 that month for VPS B. This is an actual transaction, and I use the VPS category. VPS account holds $275, VPS B category now holds $25, VPS A holds $250.
I'm hoping I didn't budget myself into a corner. I tried just moving my VPS's account to an off-budget account and even tried changing the transactions from transfers to just a charge by my VPS (which is what it actually is on the card) and either case results in TBB going in the red (by -$300, if I use the example above).
I love YNAB and have been using it since 2014 (been on nYNAB since '17). I have always felt like I had a handle on the setup (I love the way credit cards are handled too, and up until this point, I have never had issues). With that being said, I'm embarrassed to admit that I'm trying to understand where that missing $300 went since it all made sense to me on paper. I'm guess I'm not completely getting it... Why do I end up out $300 when I make the charge?
Thank you for your responses and patience!