How to tell if Velocity Banking will work for YOU!

[@FinancialCoachJess]

MOST of the case studies I received fell into one of these 5 examples. I still have a few outliers that will get their own video so stay tuned! Also a video coming up: "Why taking out a HELOC to pay off credit card debt is one of the riskiest things you can do!!!"❌❌❌❌

[@sarita5572]

We're using both velocity banking and debt snowball....but we will only use a PLOC doing that, never our home (HELOC)...our home is paid off, so there IS no way we would use that for leverage. So far, we've seen some amazing progress using velocity banking. I found out about it last year and within a month saw a difference. But you have to be disciplined. It can get out of control if you aren't.

[@FinancialCoachJess]

Absolutely!!

[@DebtfreeMike]

Excellent explanation. An honest comparison and you’re very right about the danger of a Heloc. One thing that always amazes me is the assumption that people who have lived above their means on debt are suddenly going to change their behavior. The idea of increasing income and reducing expenses is seldom mentioned by those who push only VB. A good coach always considers what’s the best option for each client. Thank you for helping others.

[@FinancialCoachJess]

I don't like the heloc, not because I don't trust them to change, most people that find me or work with me DO make lasting changes, but because there is so much that is outside our control. Job loss, health emergency, car accident, the list goes on and on and I think people believe "it won't happen to me" but people get cars repod and lose houses everyday. It's amazing how 12 months of increasing income can change a persons financial position! I'm always in favor of increasing income over cutting expenses 😁 but I've also had times in my life where I had to do both. Thanks for your thoughts, always appreciated, Mike!

[@deval3596]

that is the beauty of velocity banking that you don't have to change your lifestyle or spending behavior to pay down debt. if a person decides to do velocity banking and keep their current behavior, they will pay down their debt, but they will take longer to pay it off. if that same person decides to cut back on their spending they will decrease the time period of how long it takes them to pay off their debt. now the worst scenario is the person that start velocity banking sees that they are paying down their debt, but decides that they are going to go get into more debt because they believe that suddenly they can afford to be spending more.

[@FinancialCoachJess]

@@deval3596they can't keep the same lifestyle that got them into the debt. There has to be a behavior change first in order for any strategy to work

[@deval3596]

it took me about a month at the most to learn the velocity banking process, to run my estimated numbers and to start implementing it. two months into the process and my debt is down approximately $5K.

[@FinancialCoachJess]

Awesome! I'm glad it's working for you!!👏🏻👏🏻

[@thomasxxxxxx2345]

Really ? Do share these numbers with us I suspect you simply paid 5K$ (or more) to reduce your debt by 5K$.. No velocity banking or other fancy moves required for that

[@TheBudgetLady133]

Thank you for saying what I’ve known for years as a retired banker and lender. Velocity Banking is not advantageous in every single situation.

[@FinancialCoachJess]

Exactly 😊

[@PamDalton-so9by]

Thank you so much for your honesty and support. I have so much high interest rate cc and loans and have been studying VB and I have no line of credit and cannot get a PLOC. My cash flow is low but not negative and Im nervous about the cc companies lowering my credit limit if I start parking my paycheck ( chunking) and after watching your videos I decided to Snowball and buckle down on our budget. Thank you for your time in helping all of us with our debt. Your time and videos are appreciated😊

[@Joce123]

The fear of having my credit limit dropped Is not a concern because I actually have available credit of about $30000? However there's not a chance on earth that I could ever make all those minimum payments if I wrecked up all those credit cards so that being said....velocity banking is working on my existing $13,000.That is daunting because the interest rates keep going up. Insurance goes up on the car because of other people. I have never had a claim..I'm 70 yrs old. I put all of my money in one credit card. I use a different credit card for noncash expenses. I have reduced my overall debt by $1,900 this month!

[@Joce123]

My goal is to get my credit score high enough for the balance transfer offer that is sitting on my desk. After that is paid I will.live off of my credit cards..all extra $ will pay off my $11,00 car loan. Velocity banking strategically thought out will cut 2 years of monthly payments to zero. That $500 a month savings will allow me to weather the at least 2% or more inflation forecasted by the Federal Reserve .With a paid off car loan I can put the car in "storage"...use the bus or Lyft if I cant afford $125 car insurance..

[@Joce123]

I am actually paying 0% interest on a nearly $5,000 balance in velocity banking. Making sure that I have that paid off before the zero percent financing.ends is important.

[@PamDalton-so9by]

Thats great Joce! Happy VB is working for you. Unfortunately my mistakes of 42,000in debt has lowered 4 cards now. Not proud of my spending but Im on my way with Snow Ball and my first card will be paid off this Month and my second card first week of March. I will be debt free by August 2025 it may seem long compared to some VB cases but it is a good feeling to know I made a good choice for my family. And we are not living on Rice and Beans lol its nice to know I can make it work.

[@Joce123]

Getting a job even at McDonald's right now is almost impossible so raising income is not a viable alternative for most people.

[@GGVanilla]

Ok I love you. Immediately subscribing. #1 your tone of voice is lovely. #2 you explain things very eloquently and simple #3 you honestly just seem like a good person ❤

[@FinancialCoachJess]

Aw wow! You are so sweet, thank you! ☺️

[@robfraser33]

Really helped me understand the route I need to go to work through my situation. Thank you so much!

[@FinancialCoachJess]

I'm glad it was helpful!

[@scottatjoy]

Thanks Jess!

[@FinancialCoachJess]

Thank you for waiting extra long!😅

[@Joce123]

In Minnesota add bank of Montreal you can get 5.6% in some other places in Minnesota. You can get 6% interest on your savings.

[@FinancialCoachJess]

WOW!!! So insane!!!😱😱

[@reedshards9241]

Hi again. I really love your videos and I have a feeling of excitement for paying off our debts. One question. If I use VB to pay off one credit card, do I just switch to the next credit card to park my paycheque in? Thank you! Liked and subscribed :)

[@FinancialCoachJess]

Great question and I'm glad the videos are helping. That is one method of doing it but here's some things to think about: if you have multiple credit cards, you can't pay a credit card with a credit card so it can be difficult to do vb without getting a separate line of credit to absorb the cc debt. Also think about changing all of your subscriptions each time you pay one off and have to move all your expenses to a new card... the time spent adds up!

[@reedshards9241]

Okay I'm going to send you my numbers and see what you think. Is there a such thing as using a combination of debt snowball and VB? @@FinancialCoachJess

[@FinancialCoachJess]

Yes! I haven't done a case study like that yet, but I plan to!

[@123Cookies-v7m]

When you do velocity banking and build up credit are you allowed to put that towards whatever you want to, or does the bank have to first approve of it depending on if they think it's going to be put towards something that's a good idea or not?

[@FinancialCoachJess]

I'm not sure I understand. When you pay down the debt, sometimes the bank will lower your credit limit as a precaution to protect themselves. Not that big of a deal since you are paying off the debt and don't want to put anything else on credit anyway

[@123Cookies-v7m]

@@FinancialCoachJess No, I mean the amount of credit you have built up when you do the velocity banking strategy. Is that amount of money able to be used for anything or does it first have to be approved by the bank?

[@FinancialCoachJess]

Do you mean your credit score?

[@leeposton1664]

I just don’t understand why you’re comparing the debt snowball to velocity banking. It can all be done together. Velocity banking is just dumping your paycheck into which ever vehicle you’re using to decrease monthly interest. Whether you decide to do the debt snowball or start with the highest debt or the lowest debt or the highest interest rate versus the lowest interest interest rate. You would still use velocity banking either way.

[@FinancialCoachJess]

Numbers wise, this doesn't really make sense because of the added effort and time invested. If it works for you though, more power to you!

[@leeposton1664]

@@FinancialCoachJess ok, guess i don't understand what you are saying then. No worries.

[@user-fp8xc8lf3f]

Debt snowball is the right choice for like 95% of people. If you’re a super nerd and hard headed then MAYBE velocity is the better choice.

[@FinancialCoachJess]

Idk I think you'd be surprised at how many people have a lot of credit card debt that can be consolidated and simplified with vb. I would say it's probably 70/30 debt snowball and vb. The real problem is if they can get a line of credit big enough, fast enough. I think that's actually the deciding factor

[@user-fp8xc8lf3f]

@@FinancialCoachJess Nah the decision one has to make is if they have enough motivation to do VB. The Debt Snowball is the better choice for anybody who needs motivation and hope and inspiration to get out of debt. Which I think is nearly 100% of people in consumer debt.

[@FinancialCoachJess]

Do you think it takes more motivation to do the debt snowball or vb? I think vb offers more accountability because if you mess up, you see the consequence the very next month. Where if you mess up with the debt snowball you don't see the consequence until the end of the loan. I agree with you that it can depend on the person!

[@Tryp-j9d]

It’s EXTREMELY STUPID!!!! You SHOULD ALWAYS pay toward the DEBT with the HIGHEST INTEREST RATE, DUMBBELL!!!!