YNAB recording credit card interest/charges

theboakster

I don't quite understand recording credit card stuff in YNAB. I've set up my credit card accounts, I've done transfers from my bank account to the credit card for my regular payment.

I have charges for 0% balance transfers that I want to record, and also interest for my next account.

I watched a video and set up transaction as if I were buying something. But now in my credit card line on the budget it's saying I have the interest available to budget... so have I done this wrong?! I don't understand

theboakster

Oh and also, I had a credit to my credit card account that came from Barclaycard - what do I categorise it as?! and now that's showing in my budget...

angelpye

I think people handle their debt in various ways on YNAB. I didn't want the debt showing me as overall in the red ( I would find it difficult to look at and demotivating) so I just put the balance within the description name(to be updated with each new statement and an idea from another forum user). I then just budget as usual for the actual payment I make. As I don't use cards to pay for things and pay off each month I don't feel the need to use YNAB to track them - I think YNAB is set up for healthy use of credit cards i.e. that you pay it off each month in full.

I also got a credit to my credit card this month so I just reduced the card balance in the description. I get charged interest but don't record this anywhere. I only record the budgeted payment as with any bill and the amount outstanding.

If that makes any sense, I hope it helps!

stinky_daddy

theboakster wrote: »

I don't quite understand recording credit card stuff in YNAB. I've set up my credit card accounts, I've done transfers from my bank account to the credit card for my regular payment.

I have charges for 0% balance transfers that I want to record, and also interest for my next account.

I watched a video and set up transaction as if I were buying something. But now in my credit card line on the budget it's saying I have the interest available to budget... so have I done this wrong?! I don't understand

Am at work atm, however, if no-one responds before tonight I will have a look and advise, as I know I had to increase a credit charge (think from memory it was just putting the figure as an outflow when selecting the card) but will indeed confirm for you.

TIA

s_d

copperclock

YNAB does a daily seminar about how to use credit cards. It's quite good. You can ask specific questions and there is a real expert there to help you. Don't be put off by the bit saying that you need a headset to take part - you only really need headphones.

stinky_daddy

stinky_daddy wrote: »

Am at work atm, however, if no-one responds before tonight I will have a look and advise, as I know I had to increase a credit charge (think from memory it was just putting the figure as an outflow when selecting the card) but will indeed confirm for you.

TIA

s_d

Hi

just looked, and assuming you have a negative (in red) figure (because you owe your cc money and haven't paid it off in full, then I selected the relevant account, added a new transaction (e.g. interest) and entered the figure (e.g. £20) as an outflow.

This should then ensure your accounts balance (it should now reflect the correct figure in the tree list on the left (in blue).

HTH

s_d

theboakster

Thanks everyone - still confused, think the seminar is a great idea!

tlc678910

Hi,
Because I have outstanding credit card balances I have chosen to have the credit card accounts "off budget" in YNAB. On your computer you can right click on the account name and select "make this account off budget". The account then does not affect the money you have to budget.

If I buy something on the credit card or interest is added I have to go into the account and enter this as an " outflow". If I make a payment towards the card I record the transaction as an "inflow".

This does mean that when I pay my credit card bill I record an outgoing in my " on budget" bank account and an inflow separately to the "off budget" credit card. The benefit is that my YNAB budget shows what money I have to allocate from my wages this month without it being distorted by outstanding credit card balances.

You can see your net worth of all accounts to help you keep track of your progress.
Tlc

copperman05

tlc678910 wrote: »

Hi,
Because I have outstanding credit card balances I have chosen to have the credit card accounts "off budget" in YNAB. On your computer you can right click on the account name and select "make this account off budget". The account then does not affect the money you have to budget.

If I buy something on the credit card or interest is added I have to go into the account and enter this as an " outflow". If I make a payment towards the card I record the transaction as an "inflow".

This does mean that when I pay my credit card bill I record an outgoing in my " on budget" bank account and an inflow separately to the "off budget" credit card. The benefit is that my YNAB budget shows what money I have to allocate from my wages this month without it being distorted by outstanding credit card balances.

You can see your net worth of all accounts to help you keep track of your progress.
Tlc

Which version are you using? I use my credit card balances as 'in budget' and the outstanding balance is not affecting the budget amounts. All it does is show overall debt on the right hand side. I doesnt effect how much money I have left to budget with.