Credit Card Starting Balance, New Debt and Payments
Hi all! Newbie and first post here! If I can get past setting up and managing my credit card debt in YNAB, I will no longer lose sleep, so please help a gal out! My head is spinning from watching videos and reading posts about CC’s, but most are too simple and don’t address my situation (which isn’t unique for credit card floaters).
Here’s my situation:
In December, I set up my CC account with a starting balance of $1828.27. Had new spending of $9.13 and a payment of $978.27. In my budget, I allocated $9.13 to the appropriate category, and in my credit card budget, I set aside the difference, which was $969.14.
Then, I had another expense in December of $123.67, for which I budgeted. However, January began. I understand that CC money doesn’t roll over, but goes into the to be budgeted amount. I hope this is correct thinking! Therefore, in my credit card budget, I set aside that $123.67 to be available for a payment. I then had additional charges for a total of $764.78 for which I budgeted in their appropriate categories. My next payment amount was $1637.00.
Now, this is where I’m tripping up! I’m not sure how much to put in my credit card budget. I understand how YNAB reassigns dollars when spent on credit cards; the $764.78 moves to my available to spend for the credit card. So, $1637 less the $764.78 already budgeted gives me $872.22 to be budgeted. Remember, I had $123.67 available from December? Do I ADD the $872.22 to the $123.67 to my credit card budget category? Doing this means my new activity is paid, and my starting balance (old debt), is reduced by $995.89.
I THINK I’m on the right track, but I sure could use some confirmation in this! Any advice would be appreciated!
Hi SingNDance !
Positive amounts in your categories (including the Credit Card Payment category) will roll over into the next month. The amount in your Available column is how much you have to send for the credit card payment.
Budgeted spending on your credit card will move money to the Credit Card Payment category for you, as part of how credit cards are handled in YNAB. Any additional dollars you'd like to send to debt will be added to your Budgeted column in the current month.
A Pay Off Balance by Date goal can help you set a monthly amount to budget for, to pay off your credit card debt by a certain date. The amount will automatically adjust if you are making slower or faster progress!
Let me know if you still have questions!Reply
nolesrule Nicole at YNAB bevocat mamster I DID IT!! It's nearly 3 am and I've been at it since 5 pm, but I DID IT! Budget is now completely in balance and all dollars have a job! And no, I didn't start over at all; I stuck with it and figured it out. Thanks for everyone's encouragement and advice! I'm going to catch up on some much needed rest now! 😴Reply