Credit Card to Card Transfers
I have been YNAB-ing for a number of years and, thanks to YNAB, my Credit Scores have gone from in-the-toilet to nearly excellent (in just a couple of years of "seriously" following the rules). This years' resolution was to use the software to govern the CC payments - my transaction memo fields contain "[email protected]" every time I schedule payments - and to try to only spend from the budget, more budgeted spending and less "rolling with the punches" spending, which has helped growth of the True Expenses categories immensely.
Anyway, my question, I opened a new CC account - for the 0% APR-for-14-months offer. I then transferred funds from 2 different cards (approx. 25% APRs) so I can now pay those cards' statement balances every month.
In the software, I added the new account (with starting balance $0.00) then transferred from the high interest accounts into the new account. Now, in the accounts side, my new account has an orange flag saying "Overspending (Jul) $2073.74" which is the total transferred. I also entered a separate transaction for the transfer fees and those were funded in the budget so it showed up in the payment bubble.
I think I understand the "why" of this flag - YNAB is interpreting it as un-categorized spending (maybe?). But I can't figure out how to get rid of it. Or should I just ignore it (a prospect which really doesn't sit well with me - will it follow me all the rest of my days?) I tried moving funds in the budget side (from the corresponding CC categories) but that didn't do it - not to mention there aren't enough funds to do it completely...
Does anyone have any suggestions?
Hi Maroon Leopard !
You're right! Since balance transfers are Transfers and don't require a category, the "spending" can't be budgeted for in your categories.
Here’s a quick video that walks you through the balance transfer process..
When you make a balance transfer between credit cards, you’ll add the transfer transaction between those credit card accounts in YNAB (like you mentioned). Then, your Credit Card Payments categories will also need to be adjusted — move money between them to show that the debt is now on the new card.
Give that a try and let me know if you still have questions! :)
Hi Faness, thank you for your quick reply. I tried the things in the video but it doesn't seem to address the problem. Nor did moving funds in the budget help - this only increased my available payment amount (in the account side) but it did nothing to the overspending amount.
My problem is that on the new CC account, next to the 'Reconcile Account ' and the 'Payment' button/balloon, there is an orange balloon that says that I've overspent this month the total amount that I transfered from my old CC accounts. (Apparently the video is older as it doesn't have the payment button/balloon). What I can't figure out is why it's there as I only moved money from one account to another (or in this case 2 accounts). The new account still shows my correct payment amount as it was all budgeted spending (I had an emergency plumbing repair before the transfers). And the respective CC account balances are correct, I just can't get it to recognize that I haven't, in my opinion, overspent anything! (OK... confession time... through the months (specifically last year) I didn't always pay the entire available payments, just the minimum plus some, and as the funds grew, I "borrowed" them to cover other overspent categories... did that lapse into bad habits come back to bite me in the you-know-where?) - or...
Could this be a programming glitch?
I thought that maybe if I adjusted the beginning balance... this got rid of the overspending balloon but the balance wasn't correct! Thanks for that undo button! So then I tried opening a Line of Credit account but that seemed to REALLY mess things up so I deleted it and started typing! Help! Please?
Good morning Faness!
I slept on it and figured out how to "fix" the overspending problem...
I deleted the transfer transactions and manually adjusted each accounts' balance to reflect the correct balances. This got rid of the over expenditure in the new account - in effect, telling the software that there wasn't any payments (which there weren't), only money movement.
Not sure this was kosher, but it worked. Thank you for your help and I hope my last evenings' post didn't come across as rude... I was just frustrated.