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Balance Transfers

How do I handle balance transfers?


A balance transfer is when you transfer a balance from one card to another, perhaps to take advantage of a lower interest rate. 

Step 1: Create an account for the new credit card.  Don’t enter a balance on this card yet!

Step 2: Transfer the money from old account to new account.

Start the transfer in the new account. This will be an outflow in the NEW account.

Please note: The amount of the transfer should match the amount you actually transferred to the new card.

The balances have been transferred in accounts, now you need to update the Budget.

Step 3: Move to the Budget.   Since the new credit card was set up with no balance, YNAB didn’t create a Category.  Create a Category for the new card.

Step 4: Now you just need to do a little math and you’re done.  Look at the negative Category Balance in the old card.  Add that number to the existing number in the Budget.

In this example $2800 + $100 = $2900.

This will be a positive number and it will zero out the negative balance in this Category.

Now, just enter the same number as a negative number in the new credit cards budget column.

Step 5: Turn the overspending arrow to the right by clicking on the red number in the Category Balance column. 

In the popup select Subtract it from next month’s category balance.

Now that negative balance only affects that one Category.

Now the balance has been transferred on the Budget as well.