How to pay off car loan faster!

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[@donaldhatcher6374]

Awesome... I paid off $13,864 in 2 months... Thank you Christy you saved my financial life

[@tamaraweed3124]

This should be taught in elementary school empowering children to own their lives! Thank you for making this so easy to understand!!!!

[@Northernprepper1]

They do it on purpose because our debt makes them money

[@michaelday6987]

No they shouldn't. This is a gimmick that ignores things like variable expenses and emergencies. "You can just pull it out of the PLOC". Sure, at 10.99%, and now you are far behind.

[@eldestson2112]

It’s the cash flow that pays off the loans quicker. Why didn’t you say so. Now I get it. Brilliant!

[@kauairootsohana]

Your a life saver and life giver!! You give life to those who feel dead in debt! It’s hard for me to understand to be honest but that’s good cause I have to watch and rewatch so I can retain.

[@hbahena24]

I do this now for my home and another hack is when you pay your car off you can just get liability insurance you don’t need full coverage, so you can save even more money

[@hbahena24]

@@chazmichael7967 what loan ??? The car is paid off , you can’t have just liability on a car you’re financing

[@Baddgallindsay]

Vann, I watched one of your recent videos. I was a little overwhelmed but I decided to come back to the beginning where it prob was more simple and now I get it!!!! Thanks so much. I’ve wasted 2 years on this car note

[@scottcarter3392]

My car loan 3.4% on $ 33,000 @48m . I pay extra $200 on Principal each month. Loan will be paid off in 30 months with no extra "Mumbo jumbo". I do put 90% of my bills on credit cards that pay up to 3% cash back balances paid off each month never pay interest. Make a budget so you know were your money is going out especially junk spending .That extra $10 to $20 here and there adds up quickly that's the extra $200 I get for the car payment.

[@benjaminmahoney7210]

I came across your channel last night and I can’t stop watching, such a brilliantly simple concept that most of us are completely unaware of! Thank you so much for your gifts of knowledge!

[@Mike-ym6rl]

The lesson here is, always sign up for a simple interest loan as opposed to an amortized loan.

[@ryancraig4811]

Ummm….all auto loans are amortizing. Balance declines with each payment regardless of how the interest is calculated. Real lesson here is that repaying a precomputed interest loan faster doesn’t save the borrower any money no matter how they do it.

[@melangreathouse2209]

The way that I paid off two car loans, was that I budgeted for the first year of making my payments on time, while adding to savings account . The second through 4th year( of a 5 year loan, I took 75-$100 from savings ( every other month), and paid down my loan. When I received my refund after filing my taxes, I used that to pay off my loans. So this way, I have both savings , and my car paid off. Works every time.

[@drbh6331]

how do we get PLOC

[@ryancraig4811]

@@drbh6331why would you want one, especially in a rising rate environment? Think they currently range between 12.5% and 22.5% variable. All this line of credit borrowing does is front you the money for an immediate payment and then lock you in to a situation you may not be able to handle. A DIY method would be to save up several months of payments and then make a large lump sum payment. Then repeat saving extra until you have the next chunk saved. No extra interest cost, you can park the accumulating payments in a money market, and you can stop anytime you need to. But to answer your question, just shop any bank/finance company for personal products.

[@BroncoYeller]

A mortgage is a simple interest amortized loan. Or in other words, an installment loan. Take a 200,000 mortgage balance at 5% interest. Multiply that starting balance of 200K x .05 and you get $10K. Divide by 12 = $833.33 which is the amount of interest you'll pay month 1 of the loan. Month 2-payoff will all work the same. Month two will be a slightly smaller balance because some principal was included in your first month's payment. But the interest on that new balance will still be calculated the same. How you save interest is by paying off early, especially at the front of the loan.

[@kaymack5304]

Brilliant! I was recommended your video by the algorithm but it was a video you put out 4 days ago, so I was a little lost. I decided to go back to your first videos and start with these simple examples and boy am I glad I did. Off to binge watch and pay off our mortgage!

[@Marjie73]

can you direct me to her first video?

[@mygoodlife204]

me too

[@susangray45]

It’s absolutely beautiful. I’m going to do my car now too. Only owe $4000. Hopefully pay it off in 3-4 months instead of 12. YOU ARE GENIUS ‼️‼️❤️

[@stephenharris2495]

Good luck cause this math is as fake as it gets. You will pay it off in 4 months if you make $1000 payments + whatever your interest is per month.

[@brooksfire9580]

Lol. Money doesn't 'magically' appear. You'll take the same amount of time paying off the loan as before.

[@zacharylove3581]

Don't fall for gimmicky garbage. You either increase income, reduce expenses, or both. That is the only way to pay off a loan faster. In her scenario, she claims with standard repayment you only pay the 286 to the car. Then when you use her 'magic heloc' method, all the sudden you are spending the same 286 plus the 1333 'cash flow'. No duh you paid it off faster, you are spending an extra 1333 dollars every month. Just follow Dave Ramsey. Its a proven method that millions of people have used to become debt free.

[@zacharylove3581]

@@brooksfire9580 Exactly! You either reduce expenses, increase income, or both. This is the only way to pay off a loan faster.

[@michaelday6987]

If you just put the extra amount directly towards the loan, it would be paid off in 8 months (max), and pay a total interest of $113. Just an FYI.

[@alyssadelgado8232]

That made SO much sense. I am worried that my debt to income ration isn't positive enough for this to work though...so time to crunch some numbers!

[@alamedvav]

I"ve started using this method on my credit cards already. After only two weeks I can see a big difference. It hadn't occurred to me to use this method on my car loan. Well thats next after the CC is paid off.

[@lynnc766]

I would think twice about doing that. Look at your loan documents to see how much interest you would pay over the life of your car loan, vs the interest on carrying a balance on the line of credit.

[@bjnorto]

This may have been mentioned already in the comments, but, in the example, I don’t see where she’s paying (or adding in) the monthly interest (10.99%) of the remaining balance every month.

[@jaywalk6628]

The paydown is because she is paying extra on the balance from her income. Not some grease board magic trick.

[@desmondhughes9143]

This was a Vanntastic video. You are changing my life!!!

[@tinaseymour5014]

I have to start doing this. Just figuring out my numbers!!! Thank you so much for sharing this

[@VanntasticFinances]

Thank you for watching!

[@typhoon320i]

Now do one where.... you just take all your positive cash flow ($1,333), every month, and pay off the principle on the original car loan. How much would you pay in total interest then? I would like to know the dollar difference between the two approaches.

[@royguidry1311]

That's it. You are putting all of your income into the loan every month and assuming it about double what you owe every month. If you had 1600 dollars extra on top of the 250 dollar AR loan that means you could pay 1850 a month towards your car loan. The loan would be paid of in 7 months anyway. This isn't magic it's putting every penny you have every month towards your bills and loans.

[@zacharylove3581]

@@royguidry1311 Makes me wonder if there is some kind of backdoor deal between those issuing HELOCs and CFPs who promote this garbage?

[@michaeltruelove8950]

And then you can't eat or buy gas or go to chucky cheese for your daughter's bday party....cause you can put all your earnings toward your bills?....come on...this frees up money and pays down debt........life happens....this is a safety net if not abused.

[@zacharylove3581]

@@michaeltruelove8950 You have like $1300 in available cash for an emergency. The point is if you are in debt for thousands of dollars, you and your daughter shouldn't be going to chucky cheese. Teach her the lesson of financial discipline. That will give her infinitely more than a fading memory of bad pizza and entertainment.

[@nazar7703]

@@michaeltruelove8950 Hey man I'm open to learning this. Would you be willing to explain it to me. It's not clicking

[@scottjohnson5132]

whether you have an amortizing loan or a PLOC, your payment first goes to any outstanding interest, and then the rest goes to principal.

[@alisonadams8863]

Not everyone can get a PLOC, so this scenario is very specific.

[@divinemiss4284]

You forgot to mentioned how you will pay the $600 CC payment in your expenses at the end. The monthly expenses go up when you have a $600 balance on your CC. Please explain? Blessings to you for all your good work.

[@vern2992]

This is how I see it. Am I missing something? If you took the the $1333 cashflow and the $286 car payment and threw it all on the car loan it would also be paid for in 7.64 months if there was no interest being accrued (how you also figured payment with the PLOC here). The differences I can see with this method is it allows the money put in to PLOC payments to be accessible if needed versus once you pay the $1333 cashflow plus $286 car payment into the car loan it's locked in. But if for some reason you need extra funds you could always pull up to $15k from the PLOC if you kept the car loan or you could only pull the available credit if you dumped the car loan into the PLOC. And the interest to be paid by the 2.5% auto loan over 7.64 months would be approximately $200 versus over $850 interest for the 10.99% PLOC. Meaning you would pay $650 more using the PLOC versus using the auto loan to pay for the car and have less available funds from the PLOC if needed.

[@dougschemmel99]

Agree

[@thislifeofmine6372]

You are correct. I agree also.

[@oakfan52]

You are correct. Every video of her’s I’ve seen are incorrect math and flawed logic. This is also a terrible example because wouldn’t be trying to pay off a 2.5% loan early when high yield savings accounts are paying 4%+.

[@MarkChandler-fb1fm]

I have a home mortgage with simple interest. Here's the difference: Just six months into my house payment I'm now paying more to the principle then the interest. Therefor I will only pay $48,000 in interest over the loan. All loans get their interest back first. If you own your home go look at your mortgage papers. Basically you pay double for your house with all the interest, if not more. Everyone wants you to use their cash flow to pay down the loan, velocity banking just changes the way you pay your bills, not adding extra payments. There is a risk to this type of system. The reason I had simple interest was because an individual carried the loan. She does offer courses to take on your personal issue to pay off a mortgage, car and credit cards, for a very min. fee. You can watch these videos over and over until it clicks. Nobody invests money into a bank to make more money. They invest in real estate, stock market and so on. Remember, who tells you you need to be able to write off your mortgage interest at tax time?? People who are broke...

[@patty109109]

@@oakfan52 She promotes what I call "magic math". It's the mathematical equivalent of those videos of the chocolate bar when you remove a piece but you still have what looks like a full chocolate bar. It's like a financial optical illusion.

[@jsmith3964]

Love your channel christy , I m in the process of listing to all of your videos other than mortgages . Keep ‘em rolling . Thanks

[@typhoon320i]

12:00 "7.64 months compared to 4 years" You are not comparing apples to apples though. In the later scenario, you have $1,333 to invest every single month....in the former, you don't. (but you did save 2.5% compounded)

[@shawnmckenzie5728]

How come you don’t consider the monthly interest on the PLOC as an expense in your PLOC calculation? You show it, but don’t consider it in the calculation. I.E. where is the $97.20 interest considered in your calculation?

[@marklines5816]

Sounds like a good way for someone that's not good with money to really get in trouble by spending to much and going bankrupt. People get in trouble with money not because they don't have enough, its based on their spending habits. You would have to be really disciplined to not get in trouble. I'm not really thrilled with this approach.

[@jttigera2]

It's all based on the difference between simple vs compound/amortized interest AND the fact that you can usually pay down an LOC quickly without incurring a penalty for early payment, unlike a fixed-term loan. With an amortized loan, some of them allow you to pay them off early but you are being charged on the principal plus interest. People still have to have lower expenses than their paycheck and be able to cover the payment but you end up paying a few hundred dollars less in the end. Still not clear about the $600 on the credit card but a) it buys you some time and b) you'll be sure to pay it off after you pay the car loan down. You're definitely getting rid of your debt faster.

[@typhoon320i]

I've never had to pay a penalty for retiring a fixed term loan early.

[@theuncommonsenseman5006]

No no no . All she's saying is if u put your extra money towards a loan it gets paid off faster....wow life changing. All the extra loans at higher interest ALL of that makes it more expensive not less. No matter how many terms u use and moving things around the numbers r the numbers. Money borrowed at 4 pct is better than money borrowed at 12 unless ur the one lending. This lady is an idiot. Certified moron.

[@torey4322]

I would just pay the car payment of $286 to the car and the cash flow $1,333 directly to the principal of the car. It would take roughly the same amount of time…

[@ArmyStrong15Bravo]

It would also be paid off in 7.64 months if she just put the $1619.00 cash flow that she says on the car each month. It's the same thing

[@elsie6828]

Isn't the perk here that she's paying it off in a single day? And then you only have the simple interest balance of the LOC to chop down?

[@donniebeck6112]

If you add her extra cash flow plus the original payment to the car loan you would still pay this off in roughly the same amount of time. Total interest if she just continues to make the monthly payments for the full term is 800+ dollars. If she pays it off early is less than that, I am having trouble seeing the benefit here.

[@ocgiggin]

The benefit is that you have a revolving line of credit with the PLOC, money you can use again. If you make extra payments on the car loan from your income and you have an emergency or want to take a vacation? You either use more income or put that on a CC thus incurring more debt. With the PLOC at least you are not incurring debt and can use the funds again, plus your interest is lower each month since you are putting in all your income into the PLOC.

[@dianacagle2545]

The way she represents the comparison is very misleading. It’s not 7.64 months vs 4 years. She has them applying every extra dollar they have to the car loan. If they did that without the line of credit by just making extra payments of $1333/mo they would still pay it off in about 7 months and the total interest at 2.5% would be extremely low. Without plugging both scenarios into a spreadsheet to calculate the difference in interest paid it’s not clear which scenario is better and by how much. But at 2.5%, they are much better off putting that extra money into a high yield savings account each month at 4%+ and paying out the loan with minimum monthly payment. Line those 3 scenarios up and then we have something to talk about!

[@m444ss]

so this pays down the loan more quickly, but any other expenditures during the month also raise your balance back up a little (e.g,. go to a ball game, movie, dinner out, round of golf, theme park, etc); HOWEVER, this methods shows that one only needs discipline to remain frugal for 7-8 months (in this example) to be debt free and pay a lot less net for that car.

[@renardmills718]

I don’t fully understand but I’m gonna keep watching until I get it thank You

[@DJPiezo]

Thank you for all your valuable information that you display on your channel

[@chrisduke5765]

All that really is going on is taking your cashflow and paying off the loan. If you kept the car loan but put the 1619 on the payment it would be done in 7.64 months as well. The only difference here is that you would have a line of credit to draw from when needed.

[@stephenharris2495]

Just apply the 1333 cash flow to the car payment and it’s paid off in 8 months. She doesn’t account the $100 or so per month in interest being added to the balance which takes this farce of an approach to longer than 8 months. Sorry for anyone that believes what this lady selling. She always leaves out the interest on her way of doing it to make it sound better.

[@purpletree8965]

That is what i was thinking the dame. Thank you for explaing this to me.

[@allthingsde4088]

I am so glad I came across your video and stopped to watch. I have been doing zero based budgeting and cash envelopes for 2 years. Yes it has been great and helps with strategy to my money. However, this is next level and you have opened my eyes to ease the burden of the dreaded credit card payment and my 4500 balance on my car at $385 a month. You just freed up $350 for cc a month and possibly my $385 car payment at 3% interest. I will still keep some of my envelopes because I love them but I can definitely add this and work my way off of most of my envelopes. BRILLIANT

[@VanntasticFinances]

Thank you all things! I still have cash envelopes too!🤣🤣🤣🤣🤣 But I stopped them until I broke the chains of debt. Thanks for sharing!

[@larrybranch6369]

I have two questions. 1) You added 600.00 of expenses to the Capital One credit card. Are you paying that off each month? If so, would not the income being applied to the LOC be 600.00 less each month? 2) How does your example work if a person cannot get a LOC and you are paying off the lender who issued the car loan?

[@VanntasticFinances]

No. Expenses are in cc. You have to have access to some sort of LOC for strategy. They’re pretty easy to get. Thanks for watching!

[@dhyatt1080]

Right but you have to pay off the $600 every month, hence you are putting in $600 less into the ploc every month.

[@stephenharris2495]

You are 100% correct and she can’t do simple math. She never adds in the interest on the loans she is using to pay off the debt. Granted 11% vs 2.5% isn’t huge considering it’s needed for 8 months but her way would take longer than just applying the $1333 cash flow to the car loan every month. Sadly, I think she believes what she is selling.

[@johnfindlay8636]

Sounds like the ploc presented charges interest on the balance at the end of each month. If the car loan allows principal only extra payments it would also charge interest based on month end balances which would be decreasing an extra 1333 monthly if the car loan case is putting all extra cash flow to the loan principal as is being done in the ploc case. The difference is that the car loan charges 2.5% vs 10.99%. Lower interest rate always wins on same principal balance. Forget using the ploc and just pay 1333 extra on the car loan. The lady is so pleased that the ploc reduces payoff from 4 years to 7 months. She doesn’t mention that the car loan case doesn’t t assume extra cash flow going to the loan

[@sandycheeks1580]

🎉😂 The interest goes down by paying it off strategically by day of the month! You pay no interest if you do it right. 😮

[@paulk.8537]

Your trains of thought & explanations Thereof are all over the place - Quite Confusing !

[@BroncoYeller]

If you put $1333 cash flow onto car loan you are paid off in 8 mos with $608 interest. If you do velocity banking you payoff PLOC in 10 mos with total interest of $620. So no, debt is not paid off faster, and for a little more money. Does it give you more liquidity? Yes.

[@joesalerno_emotion5055]

Wow!!! Please tell me more about this! I have worked my entire life and have veey little ti show for it. I would love to learn about how to "pay myself" to get out of debt...

[@edwardlongshanks827]

If you use her method with the amounts and interest rates she is using for the car loan and PLOC, you will end up paying almost $400 more in interest compared to simply taking the $1333 per month left after expenses and putting it directly to the car loan. The time to pay off the $12,381 debt would be the same.

[@liza.1888]

I believe this was a sign to pay off my car loan within the next 6 mths verses 4 tears! I mean years! 😂😊

[@bobbywilliams301]

with the smile anything can be paid for lol

[@4Urlv]

I just found your channel and I’m trying to learn! Q? I have a $69,000 Loan @ 10%, should I use my savings to pay it down? Thank you.

[@laurarobinson1699]

I think you will change a lot of lives for the better.

[@VanntasticFinances]

Well, how precious of you! I hope to serve many people, and to save them many years of stress and worry over debt. Thank you again for watching! And God bless you!

[@brrman123]

This all assumes the debt holder does not spend any of that $1619 cashflow on anything but the PLOC repayment. And putting $ on the Credit Card only helps the very first time you do it, since at the end of that month you have to pay that card from the PLOC and every month afterwards. This actually can be helpful to live off revolving credit but you have to be very disciplined. We all know most of America has no financial discipline. It would be very easy to start this with great intentions but find yourself 5 years later still trying to pay off that PLOC. Just take that Cash Flow and dedicate some of it to paying extra principal on your car loan.

[@astrogeek1230]

I rent. I'd like to see an example of this with a credit card (18%). 7890 income, 5400 expenses, 2300 cashflow.

[@Hyakman5408]

I've watched a few of your videos now, in just the last day, but I'm still having trouble getting a handle on what you are presenting. I need a dumbed-down version 😀

[@zacharylove3581]

Velocity banking doesn't work. Its simply gimmicky garbage. Just pay the extra cash flow towards your loan and you'll pay it off in roughly the same timeframe.

[@duskenr]

your not adding the interest from the PLOC back into the balance. any loan will be easy to pay off if you dont have interest.

[@Sandiegorealestatehunterhq]

Informational - so step #1 is to get a personal line of credit, or business line of credit, or home equity line of credit - correct? The reason being is that is simple interest versus compound interest - like a car loan, personal loan, student loan, home loan, etc?

[@VanntasticFinances]

Exactly! We use Lines of Credit for Simple Interest and for access to cash flow. Thanks for watching!

[@samboooka]

The only thing is she never adds in the additional balance on a cc for the monthly interest

[@Kraden26]

My wife got hosed at the auto dealer. I've been trying to figure out how to get out from under all that interest. Thank you for this.

[@VanntasticFinances]

You’re welcome!

[@PneumaCase]

Amazing info! Nice strategy.

[@missdesireindependance5194]

You have to be careful not to over spend.

[@sandycheeks1580]

🎉😊Exactly! You put your entire income into that PLOC. Pay those bills at the right days of the month. This is excellent for getting out of debt FAST & increasing your credit score 🔥 🥳

[@thenotoriousmilkman6037]

Why not just put the 1,333 cash flow into the car loan?

[@SubSailor688]

I can’t make heads or tails outta this. 🤔

[@anisahisa7873]

You’re counting the daily interest rate, that she has to pay, but not the portion of the balance she has to pay for the month. So, on 9476$ balance, the monthly payment would be the 10.99% plus part of the balance.

[@joepfeiler5911]

Could you do an illustration of how fast they get rid of debt with the PLOC if they had 1300 of unexpected expense come in several month in a row?

[@karenburroughs216]

The video is quite interesting to see how you walk it through but for several reasons I just am not getting something clear. There seems to be a detail or two I am not catching onto. How can I get a clearer picture from you in breaking this down because my interest is truly there. Love the concept ! 🙃

[@VanntasticFinances]

Thanks Karen! Keep watching videos, and the concept will clear up

[@Pyeknom]

​@@VanntasticFinances$1286 (monthly expenses)is coming from the PLOC every month?

[@VanntasticFinances]

@@Pyeknom yes

[@shanel5136]

Why wouldn't you just add the $1,333 "cash flow" to the original $286 car payment and pay $1,619 per month against the car loan? The loan would be paid off in about the same amount of time, if not sooner.

[@stevenmorris2293]

⁠Brian’s a hack . He’s clueless

[@earlsmalls]

Because once you send the extra 1333 in ....it's gone. No Access to cash flow . By using a line of credit you keep access to your cash flow just in case you need it because lines of credit and credit cards are revolving. Once you make a payment on a loan, that's it.....not revolving.

[@chadd587]

Because these methods leave you literally penniless. Put back double you're insurance deductibles, usually 1k-1.5kvand then go crazy with your money. It's terrifying to think people are bankrolling everything on credit. Turning their earnings into credits. Oh the times we live in.

[@aQueDog]

Wow, incredibly interesting and useful.

[@VanntasticFinances]

Glad you enjoyed it

[@swamybale8213]

This strategy should be followed only after amassing 6 months of emergency fund. Since it is low interest payment of 286, the savings should go toward funding the emergency fund. If possible, a second income should be pursued to pay off the car loan and to have some extra money for fun.

[@kauairootsohana]

In that 6 months the debt would be almost paid off though and then you can have an emergency fund in the form of ploc right??

[@swamybale8213]

@@kauairootsohana No. What happens if that person get sick or some other emergency comes? Emergency fund comes first.

[@renardmills718]

Thank You for this ❤

[@eze4life100]

Financial Literacy = Financial Efficiency

[@luism.fernandez2164]

How will this affect your credit score since the credit utilization will be higher than 30%? Will it have a significant decrease in credit score?

[@anthonylipitt2993]

Thanks very much very eye opening

[@carolloftis5161]

I really don't understand very confusing.

[@copperswirl4320]

Yeah!! Anyone will pay off a loan quicker if you’re pay 5.5 times the amount of the regular payment. That’s essentially what you’re doing. You’re paying $1619.00 dollars a month for a $286 dollar car payment. That’s no big revelation.

[@derrickjohnson2889]

I appreciate you! I found your channel! You are dope!

[@VanntasticFinances]

Alrighty then!

[@agentadrianne]

Is there any type of written content on this information? I’ve watched about four of your videos so far, and I’m really needing a “Getting Started with Velocity Banking” cheat sheet or step-by-step document. Is there anything like that available?

[@sarita5572]

I binged watched her for 2 days straight to get a full grasp on how to do this. Keep watching her videos. She has a ton of content, and what's really helped me is watching her break down others' debts and how to pay it off. My husband and I started velocity banking a couple days ago and already see a difference!

[@shawncolefdi]

I agree I would like to see this broke down in written form. Awesome content!!!

[@kimed7628]

She does have a CD you can purchase plus you can contact her and she has worksheets you can work with her on.

[@WadBerg447]

Your math makes no sense. You're paying off 12k in 7 month with what? The initial car payment was 286. That's not paying it off that fast. Where does the money come from? Well, you never talked about where the cash flow is when you move from car loan to heloc. This lady is paying 1619 that she used to have in her pocket at the end of each month. That's what's paying it off fast: $1619 car payment was the quick answer.

[@VanntasticFinances]

Thanks for watching

[@dmlr4522]

Looks amazing on paper yes beautiful

[@VanntasticFinances]

Thanks for watching!

[@4raven242]

I don't understand. If you don't pay the balance of the credit card at the end of each month, the balance goes up each month. Therefore, how will you get out of debt?

[@TDMZZ]

Dam. This is cool.

[@thetwooldpeeps3528]

🤔 at what point do you have money to put in a savings account? And in response to another person’s comment on here about kids, we should be teaching them how to save in order to stay away from credit card debt. They would be taught how to live within their means, unfortunately my Dad thought if you want anything then you had to have debt, it took me years to learn there was a better way to live and that was debt free. Believe it or not there are people who don’t even have a mortgage, amazing isn’t it?

[@marylambert5038]

Essentially this is applying her extra cashflow to the car expense which is now on her LOC ....why not just pay the extra cashflow directly to her original car payment and avoid this whole shebang?

[@VanntasticFinances]

Applying your cash flow to the loan means you just lost your cash flow. If you put it into a line of credit, you will have your cash flow in the event you have an emergency.

[@Guavagirl]

I read about this years ago and was too afraid to try it. After watching your video, I did the math to show myself it would indeed work. I am working on my car loan first to build my confidence. Once that is paid for how do I decide which loan to tackle next. . . . my rental property (30year/4.65%/2016) or my primary residence (20yr/2.87%/2020) I am guessing my primary bc the deductions on the rental? Or would you pay the higher interest rate - in my case this is the rental. The year represent the year the loan commenced. Thank you for your video and pushing me to take the leap!💝

[@theuncommonsenseman5006]

Please please speak to an actual financial expert. This lady is a moron. None of her numbers scheck out. She intentally trying confuse you. There are so many more variables she is leaving out and the numbers r the numbers. If u have extra money and u can put it towards debt then do so UNLESS the interest on the debt is less than what that same money can make for u safely ina n investment. That's it that's the truth of all her videos . She's a moron selling snake oils to those less intelligent. That's it

[@ozzman530]

All of this revolves around getting a personal line of credit? Also if someone can't get a line of credit that covers the full remaining balance of the car, this appears to not make sense anymore as you haven't eliminated a monthly payment.

[@jasonschwab9930]

Did I miss where the interest expense from the HELOC was added in to the expenses?

[@rodrain2]

Can you pay rent or mortgage on a PLOC because most mortgage companies and apartments don’t allow you to use a credit card

[@gisele6943]

Good point- Sheffield finance is another. It is one of very few companies that finance stuff like cargo trailers.

[@rogerfarley3300]

I am not a personal finance guru, but am I missing something? 1-What is the value in depositing all income just to pay bills from it? Why not just pay your bills and deposit the diff? Is that to lower the INT calc on the LOC just to pay your bills at the last second? 2) The $1286 Exp does no include the $100 payment of the LOC interest, assuming you are not paying anything on the principal. I think it still works the same, just maybe a little slower than depicted. 3) Is parking some of your Exp on the CC just a way to offset from the LOC interest until you can pay the CC last? (which adds a month) Then if you are making the minimum payment on the CC, then that payment would also slow down the repay of the LOC. BTW, you can tell she is someone you'd want to have a beer with and listen to her talk all night about this stuff! lol

[@ceeceecee2076]

paid off in 7.64 months...(pregnant pause, side eye implying you'd be stupid not to do it)..."that's beautiful isn't it." 😆🤣😂

[@boatdrinks1]

Simple interest loan = interest is only applied to the original amount, not recalculated every day or month. This is the answer from ChatGPT

[@VanntasticFinances]

Yes for loan…but we only use LINES. Simple interest calculated on Average Daily Balance, not on original amount used. Thanks for sharing .

[@richardreyna4167]

How can I pay off a camper loan of $20,900 in a year? The payment is 210 a month. Thanks Richard

[@nikij.6058]

Isn’t that assuming you don’t spend any of your cash flow? Most people spend every penny of it!

[@brianolson9285]

Are PLOC all the same on how interest is calculated? If so, are there specific types that should be used? Options if obtaining a PLOC is not available? Thanks.

[@salcusimano6912]

2900, that is just rent in California. Where is this sample. Mississippi?

[@VanntasticFinances]

Possibly. Thank you for watching.

[@jacobdyson5626]

"It's beautiful, isn't it?" haha yes!

[@JaeBrown01]

Where have you been all my life 🙂

[@locomoco2012]

Do if all my net income goes to this debt. What funds I use to pay my expenses?

[@jemelking25]

I'd definitely hire you to help me find & save money!

[@cindytilbert1403]

What secures a personal line of credit with the bank. You never mention the bank fees to apply for the loan. I mean once the loan is approved.

[@worldofcats9611]

She sounds stoned 🙂‍↔️ But what a smart lady 🧠

[@VanntasticFinances]

@worldofvatd9611 🤣🤣🤣🙏🏽

[@financeabcs]

But 10% is higher than 3%!?! Why prepay the 3% faster than the 10%? What you are saying doesn’t make any sense. The lower loan balance at the lower rate will always be better. Think about that

[@VanntasticFinances]

I’m still not mad at you..Go do you. Just making common sense suggestions to save you money.😊

[@financeabcs]

@@VanntasticFinances But how can I save money by paying 10% interest instead of 3%? Can you please explain that?

[@ForeverVersatile]

@@financeabcs cashflow

[@earlsmalls]

​@@financeabcsbecause simple interest and amortized interest are calculated differently. Go test a mortgage calculator at 5% over 30 years and you will see the difference!

[@theresaarcher3667]

Thank you so much for sharing your knowledge. You make this look easy and fun. My question is how can I do this when credit is so bad and I don’t have a credit card to pay down bills? I desperately need / want to get out of my situation and I don’t want to file bankruptcy….is there hope?

[@VanntasticFinances]

Sounds like you will have to do some pre-game work building up your credit again. But stay encouraged and moving forward.

[@anniesshenanigans3815]

very first thing is make a budget. reverse budget the last 6 months and see where your money is going.

[@gareyscarlett5147]

I’ve watched a lot of your videos and can not make sense of it still.

[@blackprince7510]

It isn't very good advice. You would pay off your car loan in the same length of time by putting the $1333 you have left after expenses directly towards the car loan every month and you would pay almost $400 less in interest. There would be nothing stopping you from having a personal line of credit available should you need funds in an emergency but it makes no sense to use it to pay off the car loan when the interest rate is 4 times that of the car loan.

[@MyNeonBubbles]

Why on god's green earth would anyone add more debt to a higher interest rate loan

[@VanntasticFinances]

You’ll just have to watch the videos to learn why…😂 Thank you for watching!

[@Lambchop59]

Hi what your not seeing is this , imagine 2 tables of money. There's 2 different agreements to pay each of them off. One is a loan the other a line of credit. See the loan is called an amoraztion . This type of pay off is made for the loaner...usually a bank or car loan from a bank. They set up the payments in reverse of the other table in that you MUST pay all the interset off before you even touch the principal. The bank is setting u up soTHEY GET ALL their interest First for themselves...it favors the bank not u The worst part is whether u have 10k or 2000k left u still pay the agreed %rate you THINK the rate is low at 6%..its a trick. OK the other table is 10k at 20% omg u think. But that a "line of credit"...or also think an "allowance" you are granted to borrow up too, u can borrow 2000k , 500 or the 1ok ur not locked into the whole 10k to borrow. OK say u take out the same amount as other at 10k at 20%. Both u have to pay back each month out of ur income right? OK u take ur pay and pay the bank amortized loan 2000$ what have you paid off? NOT the principal but only the interest, so ur loan amount u borrowed itself was not touched even tho u put a chunk down. The other bill is a line of credit this agreement is agreed as a "simple" interest rate loan. This means your 2000$ will only pay interest on what us still owe, if you knock down the principal by 2000k EACH month that "interest" is calculated LESS and less each month as well. On line of credits...like a credit card your money goes FIRST to the principal so next month's chunk then the next you are wacking down BOTH the principal AND interest, while back at the loan table your there for literally YEARS paying off just the interest, it a banking racket that only favors them by the 1000's. This method is only for u if u know ur full months income all ur monthly expences and all ur debts and where there are. Credit cards at 20% only get their omg rates IF u don't pay off your cards. Christy shows u how to knock down any debt fast. The income is set, the expences u put under control monthly are set and u are faithful til all the debt on that card is paid off. If disciplined and dedicated ur out of debt fast.

[@Lambchop59]

If u have say 3000 monthly income and u sit down and write out all ur bills using a bank check...all ur money is GONE Right? And ur writing checks all thru the month for each bill. OK say you p paid all those expenses with a credit card what happens? Your going to pay the same bills this month right? But along the month each took out and YOU only have to sit down and write one check to the credit card. What does this do for u. The credit card says wow a great regular payor EACH month let's raise her credit limit and allow her to borrow more. That line of credit gets so high fast,, for example I have a 20k line of credit on just one card. Now if I had just paid check to pay check spent MY money to pay those bills what has the bank done for me? Right now I could use the line of credit to buy a small car. The internet rate at12 % . If u did this velocity style as Cristy shows u . If I just had a car LOAN at 7% I'm stuck each check for first few YEARS goes to thier interest, I use my LINE of "credit" pay same amount that $ pays down the principal AND then interest is recalculated at the next lower amount. Both ways I have a debt but it's the way I'm locked in and what my monthly payments actually pay off.. the banks are demonic at stealing money. C cards are nicer because as Cristy shows they are revolving FOR u if u use them correctly trouble is folks rack up bills and go way out from where their INCOME is. Revolving means if u spend ur month income in bank checks it's gone no more left, spend same on card the n opps dog goes to vet..u can get more cash that mon🎉th for it..revolving in that cash in cash out....this is called "leverage" other folks money..the credit companies. You build a trust between u. They grant u an allowance or line of credit ur faithful to repay..they raise limit. A bank gives u what...059% on ur savings account? Meanwhile that 200$ minimal balance and all that money ur "trying" to SAVE the bank is "loaning" out to folks so the bank can lock them into loans where the bank gets its "interest money" first. So many folks abuse the credit cards, no discipline no knowing ur expences or income so they cover themselves with huge rates if u abuse thier offers of lines of "credit" to u. Hope this helped

[@mithrilsilver575]

I'm gonna learn this if it kills me.

[@banc8704]

Can you show us how to get approved for Ploc ????

[@francesschell4561]

I disagree. 10% is always higher than 3%!

[@VanntasticFinances]

I’m not mad at you. Go pay the interest. Just making suggestions to save your cash. Thanks for watching anyway 😊

[@rain9528]

It would have been a lot simpler to just put the $1333 extra cash flow toward the car payment. She'd still pay off the car in less than 8 months, her interest would be much less, and she still has the credit card and Loc in the event of an emergency. Your method seems overly complicated and completely unnecessary in the given situation with so much excess cash flow. 1333 + 286= 1619/month toward the car. 12,381divided by 1619= 7.64 months for the loan to be paid off.

[@ForeverVersatile]

When you make that extra payment the money is gone and cant be used again, until the next month. What will happen in case of an emergency when you could've used the $1333. The whole premise is about making the banks money work for you and not your money for them.

[@VanntasticFinances]

🙏🏽

[@dianacagle2545]

The PLOC will cover emergencies.

[@earlsmalls]

Here's the difference. If you put your entire cash flow toward paying extra and you use the PLOC or a credit card for an emergency, two things happen.....your cash flow is gone (one way) and you have created another debt pmt because of using the PLOC or CC for the emergency . By using your PLOC to pay your car off and then parking your income in the PLOC, your cash flow is still available for an emergency, you no longer have a car note pmt nor an extra debt pmt because your income parking satisfies the pmts to the PLOC and no need to use a CC in need of an emergency because you still have your cash flow intact on the PLOC. It's like your income sitting in a PLOC kills many birds with one stone.