Other Debt Accounts

How do I handle a student loan or car loan?

The most important consideration related to these debts is making sure you have enough money to make the payment.  Your Budget and YNAB's Four Rules will help you do that. In fact, it isn't necessary to set up every debt account you have in YNAB.

If you do have debt accounts, you'll need to decide whether to set them up at all, and then decide whether they should be Budget Accounts or Off-Budget Accounts.

The following types of debt accounts are ones that you're likely to spend from and should be a part of YNAB. They should be Budget Accounts and are set up that way by default:

  • Overdrawn Checking
  • Credit Cards
  • Line of Credit
  • Home Equity Loan

Learn how to handle debt in an overdrawn checking account.

It is not necessary for the following types of accounts to be set up in YNAB.  Again, the most important part is that you budget for the payment. If you would like to track the balance of these accounts in YNAB and set them up, though, they should be Off-Budget Accounts and are set up that way by default:

  • Mortgage
  • Car Loan
  • Student Loan
  • Other Loan/Liabilities

Learn how to handle debt in an Off-Budget Account.

Should I track my mortgage in YNAB?

The most important thing about your mortgage is that you budget the money to make your payment each month. It isn’t necessary to include your mortgage as an account in YNAB to do this and we don't recommend it.

When you make a payment on your mortgage in YNAB, your primary concern is to make sure that you have budgeted for the entire amount of the mortgage payment. The transaction is simple. Simply enter the Payee and make sure you select a category, since this money is leaving your Budget. For example, to make a payment on a mortgage that is not tracked in YNAB, create and select a category such as “Debt Repayment: Mortgage.”