Drawing Cash on Credit Card

I am getting myself in a serious pickle. I have used my credit card to draw cash at the tillpoint (it is much cheaper than using the bank machines and more convenient). I do have the money budgeted but there are certain places (like our car licencing department) that do not accept credit cards.

However I am not sure how to correctly reflect the inflows and outflows in YNAB and it is messing my budget up completely.

The money goes out of my credit card and into cash. Then I have to allocate the equivalent cash to put into my credit card from my current account so I don't create debt?

Has anyone else had these issues? I don't think I am reflecting it properly and now I have alerts popping up in all sorts of places.

Any wisdom or guidance would be most appreciated!!!



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  • Do you keep a cash account in ynab?

  • Yes I do

  • When you take cash out from a credit card, this is a cash advance. That means you are receiving cash in exchange for taking on new debt in the same amount. YNAB actually handles this very well, by increasing your credit card balance while simultaneously adding the new money to your To Be Budgeted when you make an outgoing transfer from a credit card to a cash account

    If the purchases you are making are already budgeted for, then you just simply budget that TBB money back to the credit card payment category and you're fine.

    If you are using the cash for unbudgeted purchases, then you've got a problem, because you need that new TBB for your budget, and you can't use it to cover the credit card payment.

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  • I just make a transfer from my card account to my cash account. No category needed, and it's automatically recorded in the credit card category. 

  • Hi Spring Green Pony !


    Ah, I see! When you make those cash withdrawals from a credit card, you'll just log it as a transfer in YNAB. Transfers from a credit card account to a cash account in your budget represent a cash advance situation in real life. When you do a cash advance you've created debt on your card, and you now have more cash to use. 

    This is reflected in YNAB as well. It shows up as overspending (debt on the card) in your account register and money is added to your To be Budgeted amount (and consequently to your Funds for [Current Month] number). 

    Since you likely didn't want to incur debt when this happened, you'll want to budget the amount of the transfer to the Credit Card payment category so you have that money available for your payment.  Here is a video that shows you what this looks like in YNAB, I hope it's helpful!  😊

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