How To Eliminate Any Loan (including Mortgages) Using Credit Cards and Credit Lines

[@velocityc]

Need help? - calendly.com/g12group/velocity-channel

[@Teezyboi_88]

I will be emailing you shortly! 🙏

[@shanenolan085]

1:57 Golden Info ✨️💎

[@Fitforacting]

At seven minutes he breaks down how to pay off the mortgage. Thank you and this is something we all need

[@demetriushouse8734]

I applaud you for creating this video for us common folk. I'm here to tell you guys this really works. I was nervous but I took a chance at it. For me the concept made since instantly and long story short I paid down 10K of my mortgage principal in 6 months. I can't explain the excitement and I told everyone. Had I not made a large purchase the term would been shorter. Now I'm on my second round. It's often hard for people to do something foreign but I encourage you to try this if you want to rid yourself of your mortgage quickly.

[@deathuponusalll]

That awesome man! So how are you doing now 4 years later?

[@TJ-jg7hk]

For those wondering about the interest payment on the credit card along with the mortgage: Essentially you are making your monthly payment on your credit card automatically by putting your checks directly towards your credit line as opposed to in the bank. Then you take out the mortgage payment from there just as you would from your checking account. That's why he focused on paying down the credit card first so you have your entire line of credit to work with on a monthly basis as opposed to just paying the minimum which will keep you behind several thousand on that $15,000. By paying the $5,000 straight towards your credit card this takes care of the monthly minimum and interest payment in one. Took me a minute but I understood it after a little bit of thought.

[@Phaedrus68]

It doesn't, actually. Yes, it will cover the monthly payment, but you'll be still be charged monthly interest (which he's not accounting for in the video). The entire amount of your previous credit card payment doesn't move to cash flow. The only way it would work like he's saying is if the credit card was charging zero interest. And if you're getting charged zero interest, there's no point in sending your whole check to the credit card each month. Just send your monthly budget surplus in. So this whole concept of living off your credit line doesn't make any sense for past debt. As long as you're carrying a balance, there will be interest charged every month.

[@ciennamin]

@@Phaedrus68 Truth

[@S4_QUATTROPOWER]

I still don't get it, I'm having brain farts 🤯

[@coachpete2771]

what is the easiest way to pay the mortgage with a credit card? They usually do not allow this. In essence if I added 5K of my check per month into the cards and paid 5K into the house, I should be done essentially in 3 years. The key I think is the Amortization. By putting a 5K lump sum into your mortgage, you are essentially preventing the bank from activating he daily interest on the full amount. They only tax the X-5K amount instead of just charging you the daily interest on X amount. I still want to know what is the easiest way to pay a mortgage payment with a card. My mortgage doesn't provide an option to send the payment via credit card. The other thing is...I wouldn't send my full check. I have to have some cash for cash purposes. Some places do not accept CC.

[@darrelbell3339]

How do U pay the mortgage w/cc? Mortgage Company don’t have that option. I have heard of Plastiq.com were U can pay w/ cc for 2.5% so that’s a extra $20 - $30.

[@appetite4chic878]

I’ve watched this about 5 times in a row to grasp this concept. I’m determined to change my thinking and way I manage money. Financial stability is the goal

[@shanenolan85]

I'm grateful I came across this video months back and implemented this method 🙏🏿💁🏿‍♂️💯 just made my second principal payment and I reviewed my updated amortization schedule. I'm on pace to payoff my mortgage in 6 years, while saving tons on interest each month 💯 thank you very much for the information!

[@velocityc]

Thank you for commenting! If you would like , I would love to have me your concerns: [e-mail] I look forward to hearing from you.

[@Rclinnov]

After watching this vid, Dave Ramsey crushed his phone in his bare hand.

[@velocityc]

Thank you for commenting! If you would like , I would love to have me your concerns: [e-mail] I look forward to hearing from you.

[@dany6711]

He probably never saw the hole video 😂😂😂😂😂

[@BritBrat444]

Lol

[@erickwatson2735]

I had to watch your video 3 times but once I understood it completely, I stood up and applauded!! Thanks so much!!

[@pamelaf5913]

Erick Watson I'm still watching each time I find a new understanding lol

[@velocityc]

Thank you for commenting! If you would like , I would love to have me your concerns: [e-mail] I look forward to hearing from you.

[@velocityc]

@@pamelaf5913 Thank you for commenting! If you would like , I would love to have me your concerns: [e-mail] I look forward to hearing from you.

[@Omilloadams]

The concept is very simple if you know how credit works. Good credit can take you where money can’t .

[@velocityc]

I am using that....with your permission

[@Marcusmarcus318]

Lmao, I had to watch this video 5 times before i could get what he was saying, I think I might try this, it all make sense now

[@velocityc]

+LaMarcus Allen do it and witness the revolution

[@appetite4chic878]

LaMarcus Allen lol I literally just typed this. Had to watch it 5 times lmao

[@DraLaRoc]

I feel ya...I am on "Replay" #2 :)

[@player7000]

And I still don't get it.

[@oflyf]

Conanjay Wallace is there a way I could talk to you directly please, with my circumstance particulars so that I can adapt your method, and move ahead.

[@TJ-jg7hk]

An imediate issue I found when I attempted to implement this was most places don't accept credit cards as forms of payment on loans (Car,student loans,mortgage, personal loans,etc..) So essentially you still need a checking account in order to make those payments, but for your monthly utilities and leisure expenses you could put that money on the credit card and pay them with credit card.

[@mebernal14]

Not sure i follow this statement. You need assets, like own a home with equity, pull out a HELOC , home equity line of credit, and then use his strategy.. its awesome. Of course towards the end of the loan when the interest is lower you may revert to paying mortagage in a traditional manner.

[@velocityc]

Ryan May great question! See how much the cash advance would be first. Then if you see that it isn't worth it, pay it from your checking account. Remember, the goal is to transform the amortized interest (loan) into simple interest (line of credit)...

[@sha370z]

state of illinois 16 billion unpaid bills backlog

[@velocityc]

Quinn Drake great questions! My email is [e-mail]

[@velocityc]

sha370z looks like they need this velocity banking system!

[@xzayviyo]

Are you speaking of credit cards or lines of credit from a bank?

[@ashleygoldsby105]

I have some questions. Is there anyway to speak with you via phone?

[@ionuttopuz]

I paid my home in 2,5 years. It doesn't mater if you use your credit line or your debit, or write a cec.The only thing working is, if your montly expenses are lower that your mothlly income. The bigger is the difference, the faster you pay the mortgage. You canachieve this by multiple ways. Increase your revenue whit a second job, geting a raise, finda new job better paid and/ or decrease your expenses (less dinners out, more home cooking, buy a used car instead of new ones, make economy where it doesn't mater for you)

[@sujovian]

This almost makes sense at the start, when you’re replacing 21% credit card debt with 6% line of credit debt, but it fails to account for the fact that you have to secure the line of credit with something, typically your house. So now you just took your unsecured credit card debt and moved it to a secured debt. Default on credit cards and all they can do is send you to collections and ruin your credit. Default on a Heloc (Home Equity Line of Credit), and they can take your house. This is a crazy amour of added risk that is left entirely out of the presentation. Then it completely falls apart with the guidance to keep using the heloc to pay down the mortgage, because the mortgage interest is as good as if not better than the heloc interest. You’re better off just throwing that 2,000/mo directly at the mortgage instead of paying off a perpetually floating 6-month heloc. I have a feeling this is actually a sales presentation to sell HELOCs

[@christieyong6285]

You are so right

[@Suzy-nq2yc]

Get a PLOC. Not a HELOC. Unsecured baby!

[@movingonup.9244]

it is not that hard to grasp just open the mind and not be scared he is on point

[@ihatemyjobtv]

"While you are doing that you are inserting your monthly income into your line of credit and living on your line of credit." This is the classic "Rob Peter to Pay Paul" Approach. This is the same approach that got people in trouble in 2008. Buy property A, get a line of credit on property A and then Buy Property B. Get a line of credit on property B in order to buy property C. We all know how that ended for many people....they lost it all. Guys, always protect yourselves first. Save money for a rainy day and don't pay interest if you don't have to. There's a reason why Apple is sitting on $258 Billion Dollars in Cash. A Heloc is usually prime rate +margin. The prime rate is variable, therefore the interest rate is variable. By pulling $12k out of your line of credit you're going to end up having two payments to make and you will be paying interest on BOTH payments. What happens if an emergency comes up? what if you need a new roof, surgery or you lost your job? You're going to get caught with your hand in the cookie jar and you're going to be "house rich, and cash poor." Any financial planner will tell you that you need to have at least 6 months of monthly expenses in your bank account. By using the strategy in the video you're willing to bypass that notion by simply buying into the "black hole" approach that can leave you in debt if you don't play your cards right.

[@velocityc]

Thank you for your comment. What we are doing is working for too many people to cave in to that notion though. I do understand where you are coming from. Have a good one.

[@roshglock]

ihatemyjobtv the majority of people don't have even one months expenses in their bank account. Ijs.

[@ihatemyjobtv]

roshglock, that's exactly my point. Hedging and leveraging is for people who have extra money.

[@mebernal14]

Its a great concept as long as you have decipline, set your goal, budget and make more than your out put/ expenses are..having a buffer so as if you loose your job or break a leg you can cover the the expenses until atleast your line of credit is paid off.. In 2008 people took lines of credit to spend on vacations and update their homes or buy toys.. This is a great concept Conanjay for some individuals.

[@LGnLA]

Thank you for sharing also!!

[@hooktonfonniks]

When I analyzed this method, I made a complete amortization table so that I could insert the large periodic payments from utilizing the line of credit. I was amazed at how quickly this paid off the mortgage...for about two seconds. It's readily apparent that the secret is simply in the extra principal payments. The amortization table looks very much the same by simply throwing that same $2000 at the primary mortgage each month as a pay-down of principal. Bonus #1: you don't pay higher interest on a portion of principal; bonus #2: you don't introduce added risk through taking on more debt. If I missed something, please tell me.

[@Jantzo]

hooktonfonniks huh

[@BRONXDEVILDOG]

I laughed put loud when he said "stuck like Chuck" great concept. It's all true. Do it, stop being scared.

[@radickd2]

OMG, I just calculated my mortgage for the last 7 years. I paid nearly $80k and gained only $10k in equity. That doesn't work for me. I'm getting a HELOC and applying this technique, immediately! Thanks to you and all the velocity banking videos on KZbin! This will work! It may require more attention to detail, but I love the concept.

[@velocityc]

Thank you for commenting! If you would like , I would love to have me your concerns: [e-mail] I look forward to hearing from you.

[@kenmarriott5772]

The bank can not only lend the money in your saving account that they’re paying you 1% at 5%, but according to banking rules they can make loans for a multiple of how much is on deposit. This ratio is controlled by the Federal Reserve Bank depending how much they want to stimulate the economy. For example, if your bank has $1000 dollars on deposit, it can lend $10,000 in a mortgage.

[@velocityc]

+Ken Marriott amazing info!

[@ryandanielable]

that's even worse lol

[@JayAriasRealtor]

I have a couple of questions. 1- do have to use a line of credit? Would this work using my regular credit card? And if how can I apply it? Should I take a transfer balance at 2% for 12 months. And pay a year worth of mortgage, then use my monthly payments to make the credit card payment? Or would I have to pay down both at the same time.

[@stephenmentze1579]

I could see someone starting this.. and then living beyond their means. Yikes. Exciting unless you have zero self control

[@velocityc]

Thank you for commenting! If you would like , I would love to have me your concerns: [e-mail] I look forward to hearing from you.

[@missdesireindependance5194]

It does work but you have to watch your spending

[@obaidmasih8275]

Great Video. I think you did a great job at explaining the basic conecpt!! But please do clarify few questions. 1st. can you recommend your favorite institution for credit line. That offers best rate and the recommended features. 2nd. This chunking amount that is taken out every 6~9 months( depending on your expenditure) what is it ration according to your mortgage. Is it 10% of your mortgage or could it be less 3rd. Please give a mathematical ratio of the credit line needed. Like 2* monthly pay check or 15% of mortgage. Whatever you think it should be. But rather than a solid number a ratio or definition will be much helpful as most mortgages are between 300k-600K. At least in my hometown.

[@kiddeft]

I'm really having a hard time wrapping my head around this concept. I want to understand.

[@velocityc]

kiddeft no problem.....I am here to help. Remember, the huge thing to remember is that using your line of credit helps your credit score and leads to increased lines of credit. So much better than letting your money sit at the bank and do nothing. Let me know if you have questions

[@Ceaserdadon09]

It’s simple he just explained it well. Don’t get me wrong I was lost at 1st but after I watched this twice I had it and started to apply it. I bought my 1st house 1year ago at age 26. $215,000 and I have $6000 a month bring home with just my income and I’m using this same method.

[@renatinharsl]

Hi Ceaserdadon09, do you know how we pay the mortgage with this line of credit? And if you have advice on which line of credit is good in the market right now?

[@Ceaserdadon09]

Renata Souza Lima I use my line of credit at my credit union

[@renatinharsl]

Could you share the name of it?

[@frankrodriguez7468]

Most people are not educated in money, finance and economics... so I'm sure alot of people will have to watch this video a few times. Money is just a counting system....not a value system. This gentleman has figured out a system that can help you out but at the same time.....It takes discipline because most people have bad financial habits that will confuse them. Been using this system and similar systems and trust me...it works if you understand it.....also if your partner understands it too.

[@idiotu668]

So are you Charging all of your Monthly Bills towards the credit card AND a large Principal payment towards you credit card as well? If so, where does the extra money comes from to pay off your Principle payment? I'm definitely missing this ... PLEASE HELP ME UNDERSTAND THIS

[@consciousnation3367]

Basically what he is saying is the money you typically have left over, rather than putting it in a savings account, use it to pay your credit card first. Stop paying minimum. Pay down mortgage, the auto loans. Everytime you pay down a debt, you increase you cash flow.

[@YohanceRuddock34]

I hope it's not a dumb question but how do you put your money into the line of credit? Is it a secure credit card, where you put your money up or can you increase your regular credit card by putting excess money on it? Basically I want to know the process of putting money into lines of credit please

[@jimmyneyhart]

Conanjay, you are such a great teacher man! Wow! Seriously, thank you for explaining this in simple terms! Amortized interest is a killer, isn't it! Yikes!

[@Ditronus.]

Two questions, if you don't mind: 1. How do you write a check from a line of credit to pay down the mortgage; wouldn't that be considered a "balance transfer" costing like 3% of the chunk payment? 2. I understand how increasing your cash flow can be a powerful snowball to acquire and pay off increasingly more debts, but I don't know how to safely jump into that first rental property. Isn't it very risky to balance 3 interest streams (1st mortgage, rental mortgage, and loc), as well as the risks of rental repairs, vacancy, or delinquencies? It sounds like it would work just by the numbers, but it feel like the amount of risks to make that first step to acquire a second mortgage to boost cash flow and accelerate debt payoff can leave a person with huge risks with the possibility of great loss. What's your thoughts?

[@velocityc]

Those two questions are good questions. Let me answer both... 1. Writing a check from your line of credit to pay down the mortgage isn't a balance transfer. It's a "debt transfer". And you are replenishing the line of credit with your pay check. 2. It is extremely dangerous.... When you don't know how. Shoot me an email so I can suggest how you might go in to something like that: [e-mail]

[@rcruz401]

So, am I to do a direct deposit with my employer to my credit card because I can only do so providing a routing # and bank account # unless Im transfer my monthly income from a checking account to my credit card.

[@ciphertester1147]

A lot of good stuff in the video, the only flaw I see is using line of credit where you accrue a higher interest using a credit-card. You can just simply pay an additional monthly principle. You find amortize calculator online or with an app to help you pay off your mortgage based on the time or additional payments you want.

[@velocityc]

+Cipher Tester awesome! Paying from the credir line increases cash flow. That is what we want

[@movingonup.9244]

but when you have negative balance the interest is way better than any bank ?

[@abrahamgomez3484]

The concept is great and I believe some people would benefit from it. However you need to in include the the interest on your graph. Interest @7-19% is a lot and if you don't get at least double of the interest. It will be a total fail! Please add the interest on the graph so people can be aware and can understand better. Thank you for all your help.

[@tobinsatterwhite9516]

I'm feeling your advice but if it took you 5 years to pay off your mortgage loan by the time you were done with that the cars would have already been paid off and for a average family making $60,000 a year they're not bringing home $5,000 a month after taxes.

[@iamOAKland]

the whole point is use your cash flow to pay off credit debt and stop saving your money in the bank while they use it....

[@robertweekley5926]

Tobin - True, but Accelerating the Car Pay Off, while coming to the Mortgage last, would generally cost you MORE, and keep you in Debt Longer.

[@dec1slh]

@@robertweekley5926 cars are bad debt it makes sense to pay them off first. But at the end of the day people should do what makes sense to them.

[@MoneyMike313]

Mr Wallace. First off thank you for this information. It’s great to see people actually trying to help others. I have a quick question. None of my credit cards are allowing me to get cash advances large enough to make the payment plan you are suggesting. Is there a specific card that will allow you to take a cash advance for such a high amount or am I interpreting line of credit the wrong way and should instead look to get a personal line of credit? Thanks again for what you do.

[@troyhuggins-okonkwo7559]

Sir thank you for posting this! I could understand what you are teaching, but not completely. I subscribed to your page, so that I could review your material in entirety. Before the summer I'd like to move towards the simple loan dynamic. This really has me excited! Thank you! Is there a checklist you have in mind to have someone like myself novice level move more efficiently?

[@velocityc]

+Troy Huggins great question! I actually created one that send folks like yourself through email. My email is: [e-mail]

[@troyhuggins-okonkwo7559]

Conanjay Wallace thank you

[@tosh369]

Make a spreadsheet that shows both the payment with and without the "chunking" and decide for yourself! Never take anyone's word for it unless you can do the calculation on the spreadsheet with YOUR numbers yourself!

[@sakibbinsalam8297]

As an example, take out $10,000 line of credit, use the funds to pay $10,000 principal payment on mortgage. If you currently save $2,000 per month, instead of putting it in a savings account, you use it to pay off the line of credit gradually (which will get paid off in 5 months at that rate, $10,000/$2000 = 5 months). In five months the line of credit is paid off and you again have $10,000 to draw from, so you take out another $10,000 from the line of credit. Rinse and repeat. When you get the line of credit, make sure there's no call feature (that can make the bank force you to pay off the entire drawn amount at any time, which is undesirable and risky if you lose income) and no prepayment penalty.

[@flaviapires2405]

Literally how you explained here finally makes sense to me. Thanks!!

[@claudellmadkins3993]

Start at a first grade level, how do you get and where do you go for getting a line of credit?

[@velocityc]

Your local bank or credit union can definitely help with that. You may want to start with secured credit if you don't already have credit established.

[@michaelswami]

The line of credit to which he is referring is the credit cards you theoretically already have. It starts with a 12000 balance which you pay off and then you attack the mortgage and the car notes by paying 13000 from the existing credit cards and then paying them off.

[@B-H76]

It's called equity optimization. It maybe won't pay your house off that fast but it saves you a lot of interest

[@treyperkins5887]

Mr. Wallace, thank you for this info, sir. I am a bit dense when it comes to picking up on math, sometimes. But after reviewing this video and your other ones, I think I have finally caught it, and I am excited about it. I have also watched the other videos referenced here and I much prefer yours, frankly. I have so many questions. First, do I understand that you stay current making the regular mortgage payments, and then every however often you make an additional principal only payment? I have so many other questions also. I feel like this is potentially life changing information. I want to fully understand before I undertake trying to sway my smart, practical, no nonsense wife that it is not a scam and is in fact a method we can use to change our position for the better. Any help would be appreciated. Thank you, brother.

[@velocityc]

Ernest Perkins III great question! Yes that is correct that you will continue making the monthly mortgage payments. Then when you have filled up your credit line, you then pay a chunk off the remaining mortgage balance (15,000 or however much you like). And remember the key is operating from your credit line. Your credit line is now your new checking account. My email is [e-mail] if you want more of a one on one consultation.

[@hwilliams78]

What happens if you loans (Mortgage Student Loans) do not allow you to use Credit Card to make a payment? I assume you could try and take out a cash advance but I figured I would ask to be clear. BTW this is a great video and I plan on starting to use your method next month.

[@Marq1solo]

This is a costly secret that the 1% doesn’t want us to know

[@ricardoperalta4225]

Nah this is how we beat their system. The 1% have assets to pay their liabilities and luxuries.

[@velocityc]

Thank you for commenting! If you would like , I would love to have me your concerns: [e-mail] I look forward to hearing from you.

[@velocityc]

@@ricardoperalta4225 Thank you for commenting! If you would like , I would love to have me your concerns: [e-mail] I look forward to hearing from you.

[@Rich512512]

@@confusedzentradi yes revolving cc card interest compounds daily but guess what? It can’t compound when you are consistently sending weekly payments to the card it can’t snowball on you. Even if you didn’t velocity bank sending frequent payments to a credit cards will knock out a lot of compounding interest versus sending one payment a month to a credit card. Even if you took the minimum payment and divided it by 4 payments, it would still be better than I monthly payment. Don’t believe me, try it

[@rudy1069]

Hello Brother Wallace, I have a question. when you get your line of credit. what is the 1st thing you do? say like the example you give here, 15000.00 LOC and carry a balance of 12000.00. What do you do with the 1st 12000.00? Do you take it and pay the house loan, then start the in and out expenses graph? Also do you place your extra cash flow in a savings account then after paying off the LOC take what was saved and pay the back end of Principle on your house? Your words are a Blessing on how to get ahead for myself and my family. Thank You.... Thank You... for sharing your knowledge.

[@sactometro09]

Safer way is to make bi-weekly payments (pay half mortgage on 2nd week and remaining half on the 4th week). Your lender can setup auto withdraw from your checking account on a bi-weekly basis. Also pay one extra mortgage payment but strictly towards your PRINCIPAL. This method should bring down 30 year loan to 11 years.

[@velocityc]

Great question! Email me at [e-mail] for more information on this subject. I am happy to give you a consultation on your next steps.

[@learnsomethingneweveryday1539]

sactometro09 not sure your calculations are correct. bi-weekly is one extra payment per year which reduces 30 year to roughly 26 years. are you saying one more extra payment per year shaves off another 10-14 years

[@kraybrother8768]

sactometro09 false! banks don't let you pay bi weekly anymore ,they need that whole payment in order for it to post they caught on to it

[@RNPJohnson5055]

My mortgage company lets me pay bi-weekly

[@dhall8029]

kray brother yeah they do my friend and most make you let them auto debit the money. It shaves the mortgage down big time. Amortization of the mortgage is reconfigured

[@sabrinayang3641]

How can I pay my monthly mortgage payment directly from HELOC? Does the bank allow that? Also if this strategy work, when I pick the frequency of payment for my mortgage, should I choose just simple monthly payment or should I choose accelerated weekly payment? Which one will work better with this strategy? Thanks!

[@roverandmorerestore7266]

I LOVE THIS GUY

[@JK-Visions]

excelent vid. TY! Were debt free and now starting to get rid of that mortgage.

[@Akilahfoye]

lol Laura Pitkute made essentially the same video as you, except for the Karl's Mortgage Calculator, but has way more views...It's all in the thumbnails man

[@velocityc]

Akilahfoye what is a thumbnail? Lol

[@JLewis-el7hd]

Her video brought me to this one 😅😅😅

[@UziMovie]

ill make you one

[@fernandomontoya4441]

Well props to @conanjaywallace since he published his video 6 months before her. Both covered the same material yes but both shared different financial nuggets! I liked both and honestly I thank both for sharing this amazing secret unknown to me before today. She probably has more views cuz we’ll we know why... kzbin.info/www/bejne/anjSn4eZqZeKg80

[@mikeroberts6805]

Of course we know, she is easier on the eyes, and no I am NOT trying to do a WEINSTEIN here. LOL

[@jaysonr9698]

Amazing content Mr. Wallace. Do you use a 3rd party site like Plastiq to use your line of credit to pay your mortgage and if so what was your experience like? Any difference if i wanted to use a check from my discover line of credit to pay on the mortgage? Thank you so much for your time.

[@juanortegaaguayo9683]

Isn't better to save the $13,000 in 6 months and then just put it towards the principal, rather then paying an extra interest that will incur from the lime of credit on top of the interest payed on the morgage? Anyone, help me understand. Thanks!

[@velocityc]

Great question! Remember, that you are utilizing your credit line to pay off the mortgage. While you are doing that you are inserting your monthly income into your line of credit and living on your line of credit. What happens when you do this? You are paying down your line of credit and building it back up so that when you are no longer in debt in your line of credit then.... BOOM! Chunk the 13,000 against your mortgage. Because when you do this you are transforming the amortized debt (loan) into simple interest (line). And saving tons in interest along the way. This method is simply better all around.

[@pamelaf5913]

You should teach this to the young so we can develop a rat race - less generation. So many can flourish. I think the reason people are so stressed out is because of economic strain.

[@velocityc]

I agree! That's why we are! Thank you. Together we are the answer.

[@learnsomethingneweveryday1539]

Conanjay Wallace can all credit cards be used to pay a lump sum payment to mortgage?

[@dadagunda]

Juan, that is exactly what I am going to do.....why pay any interest to any loan?

[@lateshow42]

Brother Wallace.. May I ask, does the 30% Utilization rule apply for usage of Credit Lines as is kinda standard for Credit Cards? Just wondering if I should stay under 30% of total Credit Line available.. Thanks.

[@AN_DREBEATS]

How do you use your credit card to pay off a mortgage? I’m really interested in doing this and understand the concept. I just need help executing.

[@velocityc]

My email is [e-mail].

[@Onepiecee24]

I am 19 years old and I'm just about to start my life by going into the military and honestly I have no idea about loans, credit, and mortgages but I do understand your message to some degree I just don't understand how some one goes and start a line of credit

[@Jjjjjssmm60222]

Conanjay I had a quick question about this strategy using an example. If someone is fairly tight on being able to pay their mortgage, and they use a line of credit to pay a lump sum for example 10,000 towards the mortgage principle balance, how will they then be able to pay future mortgage payment + the payments due on the line of credit from the lump sum pay down? Thanks very much.

[@Jjjjjssmm60222]

let me know when you get a chance

[@velocityc]

Joel M great question! They'll be able to pay from the paycheck they will insert inside of the line if credit. Your LOC is your new checking account.

[@Jjjjjssmm60222]

What if there is an example where someone's current mortgage payment is the maximum amount that they are able to pay monthly, how would they also be able to pay the monthly payment on the LOC after the 10,000 lump sum payment towards to mortgage principle? I understand paying the mortgage out of the line of credit, but in this case wouldn't the balance on the LOC continue to go higher and higher until the limit is reached? Sorry for the confusion, I'm just trying to understand better Thanks very much

[@tosh369]

The short answer is that unless you can pay both the mortgage and the amount on the line of credit to pay down the line of credit within the timeframe desired, you will run out of money at the end of the month. The ONLY way this works is if you have tight control over your budget already and you can save a certain amount EVERY MONTH. That amount saved every month is the amount used to pay down the line of credit. Look, I can get money at ZERO% interest after paying a 3% loan fee upfront. And my mortgage interest rate is at 5%. And it is STILL best for me to just pay down the mortgage instead of getting another line of credit and paying lump sums. It takes me one month longer to pay my mortgage off using this method instead of just adding the amount to the mortgage. I have my spreadsheet that shows this... Maybe if you have crazy high mortgage interest this may work, but like I say, I'm using 0% money with a one-time 3% fee and it does not pay off the mortgage any faster. But, do what you want... I've proved it to myself by setting up my spreadsheet and running my numbers.

[@66wow99]

The LOC payment is made automatically once you park your paycheck into it.

[@DR-um2bv]

Hold up wait 1 minute. Always wondered about this, sort of. I paused video half way in and transferred all my money in bank to my credit cards , thanks herbelous Kareem and you too C. Wallace

[@ucitstudios2489]

Ok, I understand the logic but what does not correlate is the following. You have $5,000 take home. Your mortgage is currently 1200. credit cards 600.00 a month, utilities 600.00 a month, the incidentals are at 1200.00, and 1400 in savings. This is where the correlation does not make sense. So you have 15,000 in line of credit, 12,000 in current debt in your line of credit. You go on to say that the 600 dollar credit card payment goes away and becomes cash flow with the $1400 = $2,000. which is not true, your first statement was the $5,000 goes to the line of credit. Therefore how do you have $2,000 in cash flow if the following is true. Line of credit balance is $12,000 - $5,000 = $7,000 balance after month one. Since you said that you use the $5,000 to pay down the 12,000 in 3-4 months as you stated. Therefore, you are still in the hole because the mortgage is still due during the repayment months of the line of credit. Which sums the following $1200 mortgage * X months of not paying = $3600 or $4800 owed. $600 in utilities = $2400, and $4800 in incidentals. Therefore how would one be able to use the 15,000 line of credit if you are paying it down. Therefore this method assumes that you have $15,000 in line of credit available therefore that is the only way you could pay of the mortgage and maintain your other bills.

[@velocityc]

UCIT STUDIOS i will show you. Email me: [e-mail]

[@robertweekley5926]

UCIT STUDIOS - Exactly in your final Sentence, is exactly what I grasped from this! The $15,000 LOC, Was not "Fully Used", but was "Fully Available", and also, Greater than his CC Balance!

[@kylev9687]

Love your stuff. I have a discover and chase card but was just wondering which card would be best to use and how I would go about pulling that money from the card to put towards my mortgage principal?

[@Pibrac42]

200k / 5 = 20k so you have to live on 40 k, and ask the bank for a flexible mortgage so that you can pay back principle as often as you want, after 5 years your house is yours and you can borrow money for another house and then rent it ... I guess the banks will not let you pay off the principle and I guess the banks will not let you buy a house using a credit card (200k @ 21% = a lot of money), one dollar today is peanuts in 30 years, 6% interest v inflation. Rich people are always in debt and use other people to pay the debt

[@velocityc]

+Sam Mckee great comment! I'm down with OPM!

[@seunda]

That was talked about in the beginning, having good debt vs. bad debt. Make the debt work for you instead of you working for the debt.

[@TA-ss8qc]

THIS is GENIUS!! I had to watch it four times and look up the definition of a few terms, but I've got it!!!! Thank you sooooooo much!

[@velocityc]

Thank you for commenting! If you would like , I would love to have me your concerns: [e-mail] I look forward to hearing from you.

[@brettlinsteadt2775]

Great information and inspiring video! Can this be done by using a checking account if I don't have a credit card?

[@velocityc]

Brett Linsteadt great question! As lokg as that checking account has a line of credit attached to it. Consult your local financial institution to see if this valuable tool is available for yo.

[@learnsomethingneweveryday1539]

Conanjay Wallace how would I use my credit card to achieve this?

[@MusicluvaAlways]

Why does no one take into account that if you have money in the bank you’re using interest? Why not have it three ways. Split your money three ways. One: A Heloc account - for all your daily expenses (interest is calculated on Daily basis (360 days) based on Heloc balance, which will also go toward mortgage (watch Kwak Brothers video on how to reduce a 30 year mortgage to 5-7 years) with this method. Two: Money going into credit. Three: Money into savings account earning bank interest which helps offset interest lost on a loan.

[@loueckert4970]

Check out Financial Peace University, Dave Ramsey uses this math. Great video!

[@muletowndumpsters]

Lou Eckert lol... Dave Ramsey does not use credit. Everyone knows that silly 🐇 rabbit.

[@xiuixantarot9037]

Make more money with your mortgage or get mortgage funding like i did easily. I got $250,000 within a month of contacting CEHcafe, they also helped me out with debt clearance, credit repair and bankruptcy. you may email greyhat(at)cehcafe(dot)com and thank me later

[@1badgolferism]

1) The min payment on a $12k CC balance is around $300, not $600. 2) No family that brings home $5k per month is saving $1.4k. 3) If you just pay your CC the $600 plus the $1.4k you were saving, the CC would be paid off in 8 months anyway.

[@Kodboattours]

Was having this conversation with my wife! Excellent video brother. I'm subed!

[@coachpete2771]

I just wish it was easier to pay into the mortgage with the credit cards. The current way that I know about is to use the company Plastiq and pay them a 2.5% fee to send a check on your behalf using your card. And only Discover, and AMEX allow this. Visa does not.

[@kongtcheng2009]

Thank you, u r the best brother.

[@velocityc]

Cheng Thao thank you bro!

[@velocityc]

Cheng Thao also if you want to see what it is that I am a part of this is the place to go: 15minutewebinar.com

[@DonnTech]

Hey CJ.. I got your link from Herbalist Kareem. You're dropping Nuggets bro! You've gained a subscriber.. I look forward to watching all of your videos..

[@worldsfinestnegativemind9108]

Decent explanations but no mention of taxes ?

[@velocityc]

Great question! Email me at [e-mail] for more information on this subject. I am happy to give you a consultation on your next steps.

[@HeavyRollin]

So, to simplify the explanation. Pay the credits card/s (lines of credit) with most of the income, charge all expenses on the credit card (lines of credit). Once the lines of credit are "payed off" pay mortgage with the entire lines of credit to utilize the lower revolving credit line interests. Then repeat.... ?

[@melgaona2730]

It’s not very clear what your describing, cash flow where is your cash flow go?

[@kevinlee2206]

Man i learn alot and this information is a conformation for me. I thought about doing this 3 months ago but was sure how it work. Now you broke it down to me i have the knowledge to put my plan in motion

[@biggieshorty]

You're like the Master P of credit. Uuuuuuuh! 😂🤣

[@velocityc]

Nah nah nah nah

[@MrMister731]

Thank you for this! I do have two question...If you were to do this using a credit card...wouldn't that tank your credit score during those 6-7 months you are pay towards the balance of $13,000? Also, are there other lines of credit one could use that aren't HELOC? (Im a student gearing up for the workforce)

[@velocityc]

+A Lume great questions! As long as you are paying the line of credit on time your credit score should be fine. Hard pulls on your credit decreases your score but at least 6-10 points. This strategy will actually increase your score. And yes there are likes of credit you can use besides HELOC. My email is [e-mail] if you want more specific info.

[@MrMister731]

Thank you! Will be emailing you soon

[@joshuagarner1654]

Mortgage payments are simple interest

[@velocityc]

Thank you for commenting! If you would like , I would love to have me your concerns: [e-mail] I look forward to hearing from you.

[@jasonhalley731]

If you have ten grand in savings why not give yourself a line of credit and not have any interest?

[@channellwoods]

How do you create the line of credit? Do the line of credit has an interest rates?

[@velocityc]

+Channell Woods great question! How to receive a line of credit is either get a secured line from your bank or unsecured. Also, credit cards can be used for lines of credit. They do have interest rates however, they are calculated much differently than loans. Much better!

[@channellwoods]

Conanjay Wallace I did know this but it sounds like a great strategy

[@drjd2real]

Conanjay Wallace Are you saying that as your credit limit increases to pay the max of the credit card and pay it off? I understand how it can be be paid off quicker, but I'm not understanding how in just 5 years? What if you only have a $700 line of credit for a $1300 mortgage? Are you saying that eventually you will be paying the credit card people instead of the mortgage company, what am I missing?

[@learnsomethingneweveryday1539]

Conanjay Wallace oh man, I'm so excited to begin. my mortgage I just started is 2.24% fixed for 5 years. I want to use credit cards strategy but I want to fully understand everything first as interest rates on credit cards are much higher than my 2.24%

[@earllanghamr1244]

Hello brother, I just happen to come across your site and ima watch more of the video to gasp what you are saying before my question. The info is Very interesting.

[@ethiopia4940]

Somebody please donate camera for this man. I see some potential....

[@Nana-vx6mt]

Who cares if he has good information.

[@skyblue9991]

He should be able to afford one himself it sounds like... lol

[@Anthony-vp9rx]

LOC loans work for about 10% of people correctly. Most people will continue to spend the money available, maybe not every month, but they will spend the available funds with the belief this is their savings - Some of it is savings, some of it is principle reduction that is required to pay off any debt. A LOC does not require the debt to be reduced as a term loan does, so most people in 5 years owe the limit or more. Brokers that push a term loan and a separate LOC in addition like some suggest, are doing so just to get paid a higher commission due to a higher loan limit. Not sure about America, but in Australia LOC rates tend to have higher fees or higher rates of interest. Use a variable rate loan that has access to redraw or offset (Offset if there is no additional fee or interest rate charge). Paying the same way as mentioned in this video, you still achieve the same goal. That way you will reduce your loan down. You can access the extra repayments should you need to, but the loan will reduce every month regardless of spending.

[@Mylessworld]

How do you pay mortgage payments w/ LOC if your lender doesn’t accept CC payments? I’ve found 3rd party companies that’ll fund these type of transactions, but 3% fees each month can add up..

[@willtuck311]

I get lost at the 5000 credit line

[@velocityc]

Really where do you get lost? I would love to help.

[@toriem6143]

Am I correct in that one should have their payroll deposited into their credit card line?

[@velocityc]

@@toriem6143 actually payroll isn't allowed to do that. Which means you would have to Manually make that transfer

[@toriem6143]

Yes, I'm reading up on that now. I see that instead of direct deposit to my bank I can just snap a pic of my live check and link it to my Capital One. I'm really intrigued by this. I don't have a mortgage but can this also work for student loans?

[@berniceaaron3659]

@@toriem6143 I am asking the same qestion as Karla about a student loan

[@mrrabarraza3148]

I have 2 home loans. 1 (550k primary @ 2.25%). 2 (125k @4.25%). What would you recommend we tackle this. Available equity on 1st one 150k and on 2nd (rental) 150k.

[@velocityc]

Mr Rabarraza Thank you for watching. I would definitely recommend a first lien HELOC. If you need help with this let me know... lynxshort.com/flheloc Remember to subscribe. Also, I recently launched a class entitled Velocity Banking 2.0 that goes over in detail what you need to ensure that the Velocity Banking method works for you. Check it out here: velocityconsulting.vonza.com/courses/velocity-banking-part-2

[@semganthier2225]

“The wealthy put their money in the line of credit.”? Where’s the data to support that claim? The wealthy acquire assets...a line of credit is not an asset. Why not make extra payments and tell the bank to put it towards the principal? 🤷🏾‍♂️

[@manejose1]

Lol thats what I said. I'm like is he try to improve his credit by getting a line of credit. And also, who's paying two large payments after he sends the big check cause the mortgage payments dont stop after you make large payments.

[@D.R._Iris]

He's explaining the "Snowball Effect" very efficiently! :) You pay off a debt. Then use the monthly amount that USE to go to that old debt and put it toward paying off another debt; until that's paid off. And repeat. Until all your debt is gone. I suggest starting with your smallest debt and working up (hence the name, Snowball Effect). Example: Say you have 5 debts you need to pay off (credit cards, loans, student debt, etc, etc, etc). Debt 1- you owe $500.00 and pay $50/mo Debt 2- Owe 800.00 and pay $75/mo Debt 3- Owe 1,700.00 and pay $125/mo Debt 4- Owe 3,000.00 and pay $210/mo Debt 5- Owe 12,000.00 and pay 330/mo You pay off Debt 1, in full. and now you have $50 a month that you're keeping. So, you use that extra $50 to pay off Debt 2 little by little. Meaning that the new monthly amount that you're paying for debt 2 isn't $75, but $75 + $50 = $125. If you're paying $125 as the monthly amount for Debt 2, instead, then you'll pay off that debt in half the time if you just kept paying $75 every month. (WHICH IS GOOD! Because the longer you stay in debt the higher your interest rate goes up and eventually you've put more money into the debt then it was originally worth!) Then, after Debt 2 is paid off you have an extra $125 that you use towards paying off Debt 3. Which means you're paying $250 into debt 3 in half the time as well. Then, after Debt 3 is paid off you snowball the amount from the paid off debts (Debt 1, Debt 2, and Debt 3) of $250 and start putting it into Debt 4; paying $460 in more than half the time. Then, after Debt 4 is paid, you snowball the $460 amount into Debt 5 and pay $790 monthly and also pay it off in more than half the time! Meaning... now that ALL 5 Debts are paid... instead of SPENDING $790 every month (PLUS INTEREST!!! :( ) you get to KEEP $790 every month! :D

[@funkyroller1221]

Q : don't you still have to pay the interest balance every month on the credit line?

[@velocityc]

Ronald Ali Great question! It is all taken care of when you deposit into your credit line. Beautiful!

[@herkfsu]

This makes no sense.

[@ryandanielable]

interesting question, had the same. Here's the thing, some creditcards get calculated over night and charge interested often (they charge you quick and often, which is the typical expensive credit card our grandparents warned us of). In order to use this method, you need to have a credit card that calculates the interest like the others, but has a grace period to pay it off. Something along the lines of "if you pay the last weeks balance in this month, you don't need to pay interest!"... the "cashflow" that is mentioned in the video then doesn't go to savings but straight to the current creditcard.. each month - making it interest free :)

[@TJ-jg7hk]

Essentially you are making your monthly payment on your credit card automatically by putting your checks directly towards your credit line as opposed to in the bank. Then you take out the mortgage payment from there just as you would from your checking account. That's why he focused on paying down the credit card first so you have your entire line of credit to work with on a monthly basis as opposed to just paying the minimum which will keep you behind several thousand on that $15,000. By paying the $5,000 straight towards your credit card this takes care of the monthly minimum and interest payment in one. Took me a minute but I understood it after a little bit of thought.

[@3638mike]

Great advice only thing is that 5k a month is taxed at about 37% so they are working with around $3150 every month.

[@ThisIzKena]

Ugh...I wish this example wasn't dang near identical to that on the Valley Investment Club channel...hard to discern/lend credibility to who's "more knowledgeable" on the subject matter...anyway I digress...😣🤔🙄

[@velocityc]

Shakena Cook thank you for the comment. Forget about who is more knowledgeable....is what we are teaching working? The answer is a resounding yes. That.s good news!

[@ThisIzKena]

Conanjay Wallace...in theory all good information from both vids. However, contarily, its hard to execute/apply the "teachings" without different perspectives....long story short multiple case scenerios...(aka different examples)..would help someone whom hasnt applied the velocity banking method to their finances yet...but looking to absorb as much knowledge as possible before executing...thus, my research continues...🙃

[@reseller7]

Good info just hard to follow your small print. Try using large white flip charts with info already printed out. Saves a ton of time. Also in todays world many of us get credit card cash advance offers of zero % interest for 12 - 18 mths. Just pay 3 - 5% initially.

[@alariclofton7429]

I like your video, love the information. But it seems like you are mixing time frames: You are still obligated to make those monthly payments during that 6 - 6.5 month period, but all of your money is going into that Line of Credit.

[@velocityc]

Also, a lot of people think of line of credit as another bill, when it is not. You are actually transferring your money to your line of credit when you make the change to this more effective way of paying off those pesky amortized debts. Thank you for commenting!

[@oscaritolopez7754]

Same question here

[@chrisbecker3629]

For all those years using the line of credit, you are still paying the monthly interest on the amortized interest on the loan. Just because you make a huge $13,000 payment on your mortgage using the line of credit does not mean you are no longer making a monthly mortgage payment to the bank. So now you are paying two different types of interest at the same time. Just live frugal, and put every extra dime that you have at the end of the month into the next mortgage payment after expenses.

[@ryandanielable]

Christopher Becker the big leftover chunk of untouched amortized loan still generates expensive interest.. that needs to be added in this calculation. didn't think of that - thanks ^^ still once you completed this paydown hike a few times the principal shrinks quicker making it cheaper in the long run.

[@itspoffy]

This idea seems crazy. I'd rather snowball the debt until no debt but a house payment, and then take all the money being used for all the paid off debts and hit the house payment, and drop that principle quick.

[@isiahstrickland4191]

Thanks Mr. Wallace. This video was very encouraging. Just had a questions. If you have an extra 1 to $2000 after Paying off your bills why not put it directly into your principal instead of putting it back into a HELOC which accumulate interests?

[@lonb00]

Bruh you forgot water, energy bill, car insurance(s), credit card bill, medical, etc...there is NO $1400 savings/cashflow.

[@teascobie6557]

He didnt forget, it's there either included in the $600 or the $1200 at the 2min mark...rewatch video he cleary states "other expenses" which is where you can include your medical etc. Also, eating at home and/or bringing your lunch to work are cheaper alternatives to eating out and tiping wait staff.

[@bigshotblack7530]

Idiot pay attention

[@LAZpont49ers]

Very informative. It’s still mind boggling. I have 2 questions. I have an existing HELOC with $105,000 limit. I have used $85,000 to payoff my wife’s student loans. Will this method work on an existing HELOC already in use? Also what kind of margin of error do I have? Sometimes I’m not always saving because of life unforeseen circumstances.

[@beautifullymature3548]

Question: Is the line of credit your credit card? #2: Most loan companies to not allow you to pay by credit card so how would you pay the mortgage and/or student loans via credit card line of credit? Please Help!!!!!

[@kellydude]

You can't use your credit card to pay mortgage, car payment, or some utilities bills. So how can you do this?

[@kauabarros9638]

Nah this vid is straight 🔥 tho 🤘🏽

[@assasaindude]

Which line of credit are you referring to when you pay off your mortgage? HELOC? Also, when you say you should pay off the mortgage this way, you don't mean as a replacement, but in addition to your normal mortgage payment right?

[@kyshac81]

Okay. I was having a difficult time grasping this, but after watching it for the 5th time I finally starting to grasp this. It is smarter to pay off an amortized loan with a revolving credit, because every time you pay on it, it replenishes. It sounds like it’s better to get a HELOC, and use that to payoff the first mortgage?

[@velocityc]

Oooo yes.

[@miataman2001]

Informative video. I'd like to know how a credit card can be used for this system, though. It's easy to pay utilities, groceries, etc. with the card, but how do you make your mortgage payments with a credit card if that's the line of credit one uses for this?

[@jonathanpierce561]

How much line of credit must you get in your example. Basically are you over paying your L.C. Then just borrowing the money or must you have a line of credit that’s 5k? Thanks

[@RNPJohnson5055]

I just have a question about putting your check into your line of credit instead of your checking. I usually pay my bills through my bank's bill pay. My mortgage is auto-draft bi-weekly because we are on a 15-year mortgage and have 7.5 years left. So should I just stop the auto draft bills from coming out of my checking, I have several bills that are auto drafted each month so I don't forget? So how do you pay a credit card payment with a credit card?

[@LazyBrain32]

I'm not fully understanding. What is the benefit of putting all income into my credit line? Why wouldn't I just pay expenses through checking and use any extra, that would be going into a savings account, toward the debt? Wouldn't that circumvent having to pay interest on using the line of credit for everything?

[@vb1836]

Thanks. Are you saying I should be using my credit card to pay the monthly mortgage payments? If yes then doesn’t that incur an extra cost. For eg if I pay my apartment rent with my credit card then they charge 2 or 3% surcharge. I am a little confused - can you please clarify