Credit card confusion

I just signed up for YNAB and we had a credit card balance when I joined.  We made payments totaling the balance -- I entered those payments in the Budgeted line on the card.  Since making those payments, our CC balance is now $272.46, but the Payment bubble says $514.65, and my "To Be Budgeted" is red for $514.65.  What on earth is going on?  I'm so confused.  The account is reconciled (which I had to do in YNAB, even though all transactions lined up...maybe that's the issue?).  I haven't spent over my budget on any line items.

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  • LilBee said:
    I entered those payments in the Budgeted line on the card. 

    I'm not clear on what that means.

    When you started, did you budget the beginning amount owed to the credit card payment category?

    If you sent a payment and there was no/not enough money in the category, you overspent the category. 

    Did you categorize the payment? That messes things up, too. The payment should be recorded as a transfer from the payment account to the credit card account.

    If I missed the mark, I know someone will jump in here shortly to help you get it straight. There is a learning curve, but once you get it, you'll love it!

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      • LilBee
      • Tomato_Harp.4
      • 2 mths ago
      • Reported - view

      Relieved - the budgeted amount in the CC line is equal to the amount of the payments sent.  The payments are recorded as payments/transfers from other accounts.

       

      Lavender Violin - I understand that.  But if this is the case, and it's just moving from one category to the CC line, then why is it also saying that I'm over-budget?  I've reviewed everything a million times and I just can't understand it.

       

      I also don't understand why the account wouldn't reconcile -- there were no omissions between the actual account and what was showing in YNAB.  So I reconciled, which I think compounded the problem.  The actual card balance is only $272.46, so why is the payment so much higher?  I assume it's because of the reconciliation, but I don't understand...

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      • adriana01
      • adriana01
      • 2 mths ago
      • Reported - view

      LilBee I notice that the balance you have on your credit card is positive (green). Does your actual card have a positive balance?

      Also, was that transaction you show an automatic adjustment or a payment?

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      • LilBee
      • Tomato_Harp.4
      • 2 mths ago
      • Reported - view

      adriana01 No, it doesn't have a positive balance.  We owe the $272.46 for the next payment.

      The transaction shown ($244.22) was an auto adjustment made when I reconciled the account.  Maybe that's where I went wrong...

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      • WordTenor
      • Your lieutenant, when there's reckoning to be reckoned.
      • WordTenor
      • 2 mths ago
      • 3
      • Reported - view

      LilBee Yes. Definitely delete that transaction. If your card is -272, you have accidentally added over $500 to the account to get it to positive $272, and that's probably the entire problem. 

      Reply Like 3
      • adriana01
      • adriana01
      • 2 mths ago
      • Reported - view

      LilBee right now YNAB shows that you have a positive balance of 272.46 on your card. If your card balance is actually negative 272.46, that would be part of the problem. (A negative balance would show up red with a - in front)

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      • LilBee
      • Tomato_Harp.4
      • 2 mths ago
      • Reported - view

      WordTenor if I delete that transaction, my payment stays the same ($514.65) and my total to be budgeted is still red and is now -$787.11.  The CC balance now correctly reflects a negative balance, though...

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      • LilBee
      • Tomato_Harp.4
      • 2 mths ago
      • Reported - view

      I don't even understand what is going on...le sigh.

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    • Hi LilBee !

      Looking at the header, it says there was $19,157.03 available To Be Budgeted in February, but $19,944.14 was budgeted - causing that negative.

      When you add a credit card and you plan to pay it off in full, you need to budget for the Starting Balance in the credit card category - not the entire payment you plan to make (unless those two numbers happen to be the same). Any transactions made after that starting balance, should be budgeted for in the category you categorize them to - then YNAB will move the funds from that spending category to the credit card category for you.

      If you pay your credit card in full, the credit card category available amount should always match the credit card account balance. Based on the screen shot above, $9363.16 should be in the Budgeted column - that will change the credit card category available amount to $282.62 and your To Be Budgeted to $555.08.

      From there, take a look at your other categories and subtract from your categories until you get the To Be Budgeted back to zero. 

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  • I think it's important to understand that YNAB automatically moves budget from the category to the credit card when you spend on the card. So if you budget $100 for groceries and spend $100 on groceries with the credit card, it moves that $100 from groceries to the credit card payment budget automatically. If you then budget $100 on the credit card line, you will now show a $200 credit card payment when you only owe $100. It might be helpful to review this webpage: https://docs.youneedabudget.com/article/180-credit-cards-the-basics

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  • Like, whyyyyyy does my payment not match the balance??

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  • That big negative red number is making me nervous, because I know we're not over budget anywhere, and I don't want to keep shuffling stuff around to compensate for it.

    Reply Like
      • adriana01
      • adriana01
      • 2 mths ago
      • 3
      • Reported - view

      LilBee Red in the TBB means you have budgeted more money than you currently have available. You may expect to get this month ey later this month, but YNAB makes you work with what you have now.

      It sounds like this your first month using YNAB, and that you intend to pay your credit card balance in full every month. In that case, in the first month you have to budget for the balance on the card, which it looks like you tried to do, and then any future spending will happen from budgeted categories and the funds moved into the payment category. 

      If your goal is to always have enough money set aside to pay your card in full, the Payment Available column should always be the positive amount of the credit card balance (which will be negative). There are a few things that can cause it to get off (I don't have the full list handy, just going off memory):

      -budgeting more or less to the category than needed to begin with (or having moved the wrong amount around)

      -paying more than the Available column says is available

      -spending from categories that don't have enough in them (money won't move into the payment category if it wasn't there to start with)

      -getting a refund & categorizing it to TBB instead of the original category (this may have been because the transaction happened before you started YNAB & the refund after)

      Reply Like 3
  • LilBee said:
    I know we're not over budget anywhere, and I don't want to keep shuffling stuff around to compensate for it.

     Being over budget in YNAB does not mean overspending what you budgeted.  The red TBB means you have "budgeted" more money than you have. YNAB treats overbudgeting and overspending as two different things. You can be overbudget without overspending, and vice versa.

    If you are new to YNAB, you really need to look at more tutorials and read through the YNAB Method before you start. YNAB is not like other budgeting tool and trying to use it any other way will lead to frustration and confusion. 

    Reply Like
  • You need to remove money from the credit card line until the number in available matches the number due on the card. That will help you some. 

    Reply Like 1
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