How To Use Velocity Banking To Remove Debt

[@DenzelNapoleonRodriguez]

Check Out This Playlist here where I have many other case studies to fully evaluate the Velocity Banking Concept and determine whether it's right for you - kzbin.info/aero/PLnF-b0Fck4Lg0Je7fzPsLpyhVZV3HDmSN

[@dd2865]

Thank you for this break down. You are the only one that has broke down using multiple strategies and sources to benefit and accelerate paying off debt. I always thought of it as a one and done. Get the Loc then just use that.

[@abello4f1]

Denzel, thanks to you, I've been implementing the Velocity Banking model for about 1.5 years now and it has changed my way of thinking about finances and has helped me pay off so much debt in record time. Thanks for the value you create with your content. It's been progressively getting better in terms of the practices you share and I am grateful for the lessons you teach.

[@Obamacain9]

Not sure if you mentioned it in this clip, but when you implement the debt acceleration payoff strategy known as "debt snow ball", the initial amount that you started out with say $500, is supposed to increase in size every time you payoff a debt by the minimum payment amount of that debt hence the name debt snow ball. The "ball" is meant to get larger as it goes down the hill. Debt snow ball is way more than just a "measuring stick" for Velocity banking. I would argue that if implemented correctly, it has the chance of equalling if not beating Velocity banking !

[@DenzelNapoleonRodriguez]

You are correct which validates my purpose for using debt snowball as my measurement. Velocity Banking will not work every time which I’m ok with. I only want to use it when it makes sense. Here is something to evaluate when using debt snowball understand that whatever your interest rate is on your debts you are not able to change it when making your extra payments. The second thing is you can only make those extra payments when you receive a paycheck or typically at the end of a month. With velocity banking I am immediately removing a debt which immediately boosts cashflow, I am immediately changing the interest rate which changes my interest costs and if we just look at interest costs and say our numbers are the same whoever pays less interest will go faster. The other factor is whoever has more cashflow will also go faster and more often than not with Velocity Banking I’m increasing cashflow faster than debt snowball. I know that was a lot let me know your thoughts after review.

[@liviaarellano-producciones4896]

Wow, I never knew that velocity banking could be so effective at removing debt until I watched your video. Denzel, you have a real gift for breaking down complex financial concepts into easy-to-understand steps. This video is a breath of fresh air in the world of personal finance. Your tips and strategies are not only practical but also inspiring. Thanks to your guidance, I feel empowered to take charge of my financial situation and start making real progress towards my goals. Keep up the amazing work!"

[@kathleenmcdonald-gz5hi]

I have learn new things. I feel hopeful about getting rid and f my debt once and for all. Thank you for sharing your amazing knowledge .

[@beekaye1496]

Thank you Denzel, I appreciate your diligence explaining this. I am still a bit confused but will rewatch to gain more of an understanding to apply this to my finances

[@MindBodyHub-yx1fq]

The measuring stick of snowball, what debts are attack first? High interest or highest amount of owed debt? Thank you.

[@ThaHomieDave]

love My credit Union Credit card!! free balance transfers! thanks for showing us the way!! never knew how to leverage my tools!!

[@czar82ro]

Love Your Content Brother Keep Up The Good Work

[@timstoops5940]

Fantastic explanation.. have sent this to several of my real estste clients

[@Mark_Thompson]

When you're chunking payments am I chunking regular payments or principal payments only? And how do I chunk a mortgage say 10 to 15k out of my PLOC and still have to pay the monthly mortgage payments, at the same time trying to lower the PLOC balance. I don't understand that part.

[@DenzelNapoleonRodriguez]

Here’s an example let’s use the number you stated 15k is the chunk amount so you withdraw that from the PLOC and you are going to want to make a principle only payment to the mortgage which means you’ll still owe a payment that month that you need to pay. That is the preferred way to chunk at debt. The next part is now I owe 15k on the PLOC your very next move is depositing all your income into the PLOC which pays down the PLOC and your next move is withdrawing what you need to pay bills let’s the mortgage payment from the PLOC to pay the mortgage payment. What stays in the PLOC is your positive monthly cashflow for that month which is paying down the PLOC and you continue to pay all your bills on time when there due. Let me know if this was clear

[@Mark_Thompson]

@DenzelNapoleonRodriguez thanks Denzel that was good. I understand now. Initially I was thinking my cashflow isn't large enough to bring my PLOC balance down fast enough. But regardless how long it takes to bring the balance down it's still shortening the length of the mortgage cause I'm still paying the monthly payments and chunking when I can...is that it?

[@DenzelNapoleonRodriguez]

@@Mark_Thompson correct before chunking you want to evaluate your numbers first to make sure you are not over leveraged

[@Mark_Thompson]

@DenzelNapoleonRodriguez im sure you have one but can you share a video that discusses good leverage when chunking?

[@DenzelNapoleonRodriguez]

@@Mark_Thompson yes I do here is a playlist on PLOC case studies you will see how I operate and all of my rules to leverage - kzbin.info/aero/PLnF-b0Fck4Lgdk8VDj-8IyBlm1oVPdOo_

[@STILLPHENOM]

How am I paying the entire balance in the last month on that 0 interest credit card? Where do I get that money from? I’m lost after that ..

[@waltknowsmoney]

I have been sharing this with my members

[@Brandon-zj1gy]

How does VB compare to debt avalanche? We all know that's better than debt snowball mathematically.

[@izgil7541]

debt* snowball, not dead snowball.

[@dannigill2408]

Hi Denzel I love you're thought process I am definitely interested in applying this to finances. I would love to get your advice just needing your advice how to tackle the last bit I have all your tools in place just need to know what direction to go with. I watched about 15 of your videos im not sure what is the best way to reach out to you because most of the videos were listed 2 to 3 years ago.

[@lydiasalinas5106]

I see now, if you save money= savings account, right?

[@Malandior04]

If you have 20k saved up and want a heloc to pay off mortgage faster. Is it smart to put 20k on the principal for your mortgage to apply for a heloc ?

[@DenzelNapoleonRodriguez]

I think it would be better to get educated about HELOCs and all of your options before dumping that amount of money on to a mortgage in hopes of getting approved for a debt tool. You want to take the guessing work out of that. I have a playlist that breaks down how to acquire a debt tool and all of the things we want to do to position ourselves before applying. - kzbin.info/aero/PLnF-b0Fck4LiPKf81FbCgtRQaoYf4bzmT

[@DenzelNapoleonRodriguez]

Here is one bank that helps people obtain HELOCs - flhambassador.com/denzel-rodriguez/ The specialize in first lien HELOCs

[@AnenInc]

Thank you

[@hattieaddison2640]

yes!

[@tompeterson9131]

So I have watched a few of your videos as well as mike adams over the weekend and my only question regarding VB is this. If your chunk is just x months worth of cash flow, why don’t you just save the cash and made said payment rather than use a LOC? Just trying to grasp some final details before I pull the trigger on applying for a LOC.

[@DenzelNapoleonRodriguez]

Timing is everything when it comes to velocity banking. If I have a loan at 10% and I have a line of credit at 6%. If we are looking at two scenarios where both persons have the same amount of cashflow per month. The person that moves the debt from 10% to 6% is going to go faster. That’s called debt consolidation we are all aware of that. Now with the line of credit at 6% where velocity kicks in using all of your income to pay off the line of credit once you have moved the debt from 10% to 6% and when you add velocity banking to it we are not paying 6% we are paying sometimes 2-3% or in many cases zero because of the debt we shifted. The second most important thing after timing is your cost of borrowing. Take a look at these factors before pulling the trigger in my opinion

[@Kdsampson1973]

If you’re only leveraging 66% of your LOC, what do you do with the other 34%?

[@DenzelNapoleonRodriguez]

Safe keeping, management, emergency storage, etc. Watch more scenarios I’ve done where I go above 66% in certain situations

[@burtrobin6849]

A very informative video

[@lilahchakhan5155]

What if you do not have a HELOC, can you still use the VB strategy?

[@alexchan79]

Yes, you can get a PLOC, 0% CC's, CVLI.

[@Muddface100]

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