Paid Off ALL Debt...Including Mortgage Within 58 months!

[@followerofyahushaoctaviadm]

Got approved for our PLOC today! I found your channel less than 48 hours ago and you’ve really encouraged my husband and I ! Thank you so much!!!

[@VanntasticFinances]

So happy for you!!

[@digitalguyzzz]

How can I do this in Ireland? I don’t think we have a line of credit.. is it just a credit card or what is it..

[@Mike-ym6rl]

Well laid out and easy to understand. It makes me sick to the stomach to think I lived in my home for seven years , lost my job in 2008 and lost my home to foreclosure in 2011. Had I applied this technique I would have been mortgage free before losing my job.

[@evamaria644]

I can see why you're upset; I'm upset for you? But now you know, and if you're not dead or totally disabled, you can start this over with a new home.

[@gina77duc44]

Don’t beat yourself. We are all humans and make mistakes or don’t have the information to solve the situation.

[@ThatwomanMAGA8124]

Keep your head up .Get better. Hard lesson

[@blazrbabe]

Look at it this way, you can get a better house using this method!

[@markm0000]

Everyone screws up their finances eventually. I’m still paying dearly for my mistakes.

[@josieramos1784]

You are a blessing to us who are trying to become debt free. May God bless you.

[@VanntasticFinances]

Thank you for the kind words! Thank you for watching

[@limitlesschoices]

My financial advisor has me settling debt versus doing this. I wish I would have found this before my credit score got destroyed.

[@marcmeier8247]

Fire that guy!

[@bigechoromeo]

Does he have you settling collection accounts? Paying so they can remove the collection account from your credit report maybe? If the debt is in collections it's too late.

[@ericgardner5548]

@@bigechoromeo No it's not, pay for deletion. I did it. Some companies automatically delete when you settle.

[@blazrbabe]

I prayed that God to help me with my situation. You appeared on my tiktok. I have started on a smaller credit card and had it paid off in two weeks! I am now convinced it works! Now for the big one and mortgage on my LOc. God bless and thank you! I have showed my sons.

[@blazrbabe]

Just an update 1 1/2 months into this and going strong! One 2k credit card paid off and another that was 2k, I owe $90 on this morning. I still have a 10k credit card, but it is my LOC. It is getting there. I have 3 sources of income that come in different times of the month, so the interest is a roller coaster. Lol I found this is so less stress paying bills when everything is automatic on the big credit card. I did reach out to the credit card. They gave me a card with perks for purchaes. It averages $50 a month statement credit . Everything only helps!

[@blazrbabe]

Even bigger update today! I have paid off 4 credit cards and my credit score went up 100 points! I was going to apply for a heloc, but creditkarma had a transfer balance card suggestion. I applied and they gave me a 10k loc with free balance transfer and 0 interest for 18 months! I will be transferring all the rest of the cards and my monthly payments to this card! With the no interest alone, I will be saving over 300 a month! I now can really tackle my debt faster! I should have this paid off mid October to start my mortgage pay off! I should be able to pay off my mortgage with zero interest before the 18 months is up! Even if I have a few hiccups along the way I should be debt free in a year! Mortgage included! Thank you so much!

[@KitKat10281]

Thanks for the update! I'm in a similar position as when you were just learning now about Velocity Banking. I needed to see your comment!

[@VanntasticFinances]

@blazrbabe That makes me so happy!!! Thank you

[@blazrbabe]

@KitKat10281 Stick to it. I know every week I get excited for pay day so I can watch something else go down! I use to stress out and think now what do I have left?? You can do it!

[@DaisyDukes11]

Thank you for explaining simple interest and how to calculate our daily average. Its really important for lowering interest costs apparently!!

[@ash4abundance]

I setup everything today on my HELOC and am excited to see what happens over the next few months with freeing up cash flow to being my mortgage down faster. Thank you for what you do!

[@VanntasticFinances]

Sounds great! Godspeed!

[@earthenergyhex]

how is it going now that you're 3 months into it?

[@HaughtKarl-jx9vr]

You're playing a dangerous game opening up a debt to pay another debt, using your house as collateral.

[@Mookaton]

@@HaughtKarl-jx9vr Your house is already collateral. That's what a mortgage is. You think they won't take it if you stop paying?

[@isaaccastro4003]

Hey I want to try this how is it working out for you?

[@epsamaniego]

What an absolutely beautiful soul you are to share your expertise.

[@Observers101]

This process saved 6mo in payments on a 181k loan 6% saving 20k. Throwing 100% of of the extra cash flow at the loans.

[@kelvinbishop18]

This exact scenario is what I’ve been wanting to do. This was so good to see

[@ckl5822]

I’ve watched several of your videos and I really like the way you present this. I only wish I had seen this 30 years ago when I had all this debt. Thank you for all you do… you are a true servant.

[@Ashra.Astara]

this is a great tool for everyone who has the discipline not to incur more debt should they feel they can spend more having lowered their LOC each month. Perhaps one step further in this direction would include reducing the limit of the LOC from time to time so you forego increasing your debt should one lack the discipline until you start feel the joy of paying it down and find yourself working to find new ways to lower your debt each much because its fun! thank you for sharing with the community, well done!

[@kennycharles6041]

This is very similar to our actual situation when we began using velocity banking. We refinanced our Home Equity Loan and a couple of credit cards into a new first position HELOC of $156000 in June of 2021. In the 30 months since then we have had unexpected expenses of $20000 to remove 60+ dead Ash trees and replacing our water line from the meter to our house at $6000. Even with all of that we are currently at $31000 on the HELOC and with a cash flow of approximately $5000 we will be out of debt in right at 3 years! Please tell me that Velocity Banking doesn’t work!! Anyone? 🤔

[@VanntasticFinances]

@kennycharles6041 EXCELLENT! Thank you so much for sharing!

[@kristenwilliams9123]

Was it hard to get into a first lien va a second position lien?

[@kennycharles6041]

@@kristenwilliams9123 It was difficult to convince the loan underwriter with our credit union that the numbers would work. They could not understand that the loan payment would be made by putting our entire paycheck in every month and only taking out what was necessary to pay our bills. We had good equity (over 70%), good cash flow, and a decent credit score. We ended up having a sit down with the head of the department and he was good enough to listen to me explain how our numbers would work. Since then I have referred someone else to them to do the same thing and they got their HELOC!

[@hivolco151]

I am a little SLOW!! I have been a little afraid of financial stuff ( like the dude that buried his talents) anyways I am NEW here and found this video to be extremely helpful because watching this worked out in long form is how I am able to make sense of it all! THANK YOU SO MUCH!!!

[@davidkerins8464]

Dont do this any given time the bank can close your HELOC if it feels it is at risk. I f you have extra money at the end of the money at the end of the month pay your debt off with the smallest balance first. Make sure you have some savings as well like at 1k for unexpected life events. Try taking a look at Dave Ramsey's methods at building wealth

[@guinn2000]

This example shows both the mortgage and the HELOC at 6.5%, so this works. However, 1st loan HELOC rates are around 9.5% with excellent credit. I dont see at this rate how this would work. I have a 2.75% conventional. I just don't understand how paying this much interest would pay off.

[@notmeee7302]

No because on your regular mortgage payment it is compounded interest. There's a difference. And I just got a fixed rate HELOC at 7% Even though my primary mortgage loan is at 3.3. I can still use his principle to pay off my mortgage faster than the next 20 years by using this concept while saving a ton of interest from the regular amortized mortgage loan.

[@ZedGirl]

Just think, 9% is a few dollars over 2 or 3 months vs. hundreds of thousands over 20 years.😢

[@Heiswithher]

You need to watch her other videos where the explains that all interest isn't created equal. There is compound interest 😩 and then there's simple interest 😊 that's what makes this work you have to know the difference in how each works.

[@mikeym708]

Yea, complicated for no reason. Simple or compound, it is still interest on a total balance. Paying extra towards principle is really the only way to get anything paid off quicker. Consolidating works when you have something (HELOC, PLOC, or whatever LOC) with lower interest so more goes to principle. I ignored fancy stuff and just snowballed my debts and I’ve gone from 9 credit cards totaling $1203/mon in minimum payments in May to my last CC that I’ll finish in November. That $1203 a month that would go to basically interest is now going to go as a second monthly payment to my mortgage set for principle only (I can do this from the my lenders website). I’ll have my house ($356k) paid off in half of the time. My interest is at 2.25% and it makes no mathematical sense to get a loan of any kind that has a higher interest rate, regardless of how the interest is accrued.

[@nmsauditor1a950]

This is the one that always gets me. People always talk about their low rate but leave out the time factor. Would you rather have a $100k loan at 3% for 30 years or a $100k loan at 25% percent for one year?? Folks, it is not just interest, you have to figure in time as well.

[@michaelday6987]

Just an FYI. Using the Avalanche debt payment schedule, he would have paid off his debt in 5 years and 1 month with a total interest amount paid of $31867.44

[@meganramirez2834]

Thank you for sharing your wealth of knowledge!! I am so grateful I found your channel. 🙏🏼❤

[@JR-bx6kw]

Great, but also add increasing costs of property tax, insurance, increasing utilities, etc.. This works but it would be more than 58 months, because even though his pay is going up so are his expenses... Just build in a few more months into the model to account for inflation.

[@insidethecichlidden7122]

Just a question, why wouldn't you add the credit card balance in month 1 since you had over $8000 available and it would have added $75 to his cash flow?

[@StevenShelton-l6m]

I'm not sure I understand the cash flow in this scenario. The beginning I understand because you have income - expenses = cash flow. But in velocity banking scenario 100% of the income goes towards the HELOC therefore eliminating cash flow. If you take the mortgage payment $1218 + truck payment $485 + cash flow $1648 = $3351. Using her HELOC beginning balance $181,023 - $3351 + interest = New balance. Do this for 65 payments and you are debt free. Is this not the “Snowball” effect Dave Ramsey teaches? What am I missing here? I'm not trying to be negative just trying to understand.

[@floriebailey2118]

But your monthly living expenses come out of HELOC too, so it revolves up and down

[@robertmccully2792]

She paid off the house and truck ,to eliminate the truck higher interest rate and the amortization. Than used the Heloc simple interest , which if you pay a high payment every month, lowers you interest payment every month. Yea it makes senc.

[@robertmccully2792]

Basically she wrapped everything into simple interest . Yea that makes sense if you are disciplined enough to follow the plan.

[@cherimitchell8977]

A LOC is simple interest. Watch all of her videos. It helps to get a better understanding of VB. She has one on Amortized interest vs simple interest. You don’t want to pay amortized interest because almost half of your total payments are interest. With simple interest it is reduced according to your daily balance of the loan. I can tell you by my personal experience that VB works.

[@dibber13]

Unless I am missing something. Cash flow is no more if you put the entire income towards HELOC.

[@cfuzzkennedy]

So basically for the next 5 years he has zero cash flow? I don’t understand how you say his cash flow goes up when he takes the Helloc and pays off his mortgage and truck… now there is a heloc payment that will represent both of this payments. So why not just take the initial cash flow and put it towards the principal? Or use it to pay off the truck faster, then compound that to the car, then compound all of it to the mortgage? As in $485 truck note plus $1648 cash flow. Once paid off move the 1648 plus the 485 to the car note of 473. Pay that off then move it all to the mortgage.

[@Heiswithher]

All I'm going to say is you're confused. She probably won't answer because if you watch this or her other videos you can answer your own question....some how you're missing it. 🤦🏾‍♀️🤷🏾‍♀️ You may learn better from Dave Ramsey with all that compounding and payment movements. 😂

[@cfuzzkennedy]

@@Heiswithher yeah, that is very helpful. Here is some advice, if you don’t have a constructive answer, don’t answer at all.

[@cfuzzkennedy]

@@thomasxxxxxx2345 that’s true. Pay of the highest interest first, then compound that to the next and keep it snow balling. It has worked for me in the past and still works today.

[@jvnp834]

Isn’t it better to just use your own money and pay 2k to principal monthly? You’d get to the same end goal without the added stress of the heloc payment and without paying that interest.

[@AJSwift_]

But you will always have an immediate stash of cash for future purchases or emergencies when using the line of credit. When you spend money out of your checking and savings, that money is gone. So you would use a line of credit to pay off the bill, then use your income to replenish the line of credit. And over time, the bank will probably increase your credit limit so you will have even more cash at your disposal.

[@Heiswithher]

I don't why you think a person would go to all this trouble to explain this if it wasn't a better option and you haven't watched any of her other videos where she clearly has shown its not. She has tons of videos that constantly show different scenarios and why this works better. This isn't magic no one is trying to scam you except the banks...watch research and learn. I couldn't be a content creator I would be going off on people daily, these type of comments blow my mind.

[@bigwilito]

Am I the only one that realized she added $475 instead of $485?

[@jvnp834]

@@AJSwift_ and then you lose your job. Money is not gone if you budget.

[@AJSwift_]

The cash on the credit card can be used as an emergency fund, just like a savings. lol.@@jvnp834

[@robertruiz8704]

What has happened since the rate has been going up? My heloc was at 3% now it is at 8.75% in a matter of 1.5 years

[@shockjock35]

I have $14,000 one card. I’m currently paying $350 a month. I have a $3500 line of credit that I use that line of credit to pay down that card. If I work the 20 hours of Overtime that’s a $1000 a pay period or $2000 in a month. So in two months I would have $4000 to pay the line of credit off again to then use that $3500 again to pay the card. It helps me pay bigger chunks on that card and feels like a win cuz the line of credit is a smaller debt.

[@DavidGarcia-kq8ne]

My credit union said this will work. I have a $72000 he lock with them

[@888raindeer]

can you please tell me your take on reverse mortgages. I am retired, husband has 3-5 yrs till retirement. we live states away from our kids who wont want to mess with selling our home when we pass on nor do they want this place. but to be able to afford staying here after retirement, it would help alot if we had no or lower house pymt. we have 17 yrs left on loan and about 150k equity in the home. thankyou

[@amazingamandaful]

What I don’t Understand in all the videos IS WHERE IS THE MONEY COMING FROM FOR THE HOMES TAXES AND INSURANCE???

[@seabrin]

What benefit does this person get from adding the auto loans to the HELOC? The auto loans are simple interest and significantly lower than the HELOC rate.

[@douglasmachado4177]

Car loans are simple interest but also amortized.

[@Expiee]

My credit is below 600 so i figure I’d probably need to get that up some before I can start applying this strategy?

[@juancesena8142]

I like your videos, how can I get in contact with you for more advice on my particular situation

[@lisawilson570]

what about heloc payment is that in the monthly expenses? I am assuming it is lower than the mortgage payment and truck payment, but where is the heloc payment figured in

[@pemo2093]

You cover the monthly HELOC payment by depositing your income every month

[@jeremyfogt6798]

So what was his point, to have as few loans at one time? This way pays more interest than if he just paid the loans and put his cash flow to the highest interest item. If your goal is to just get out of debt as soon as possible then the LOC works if you take all your liquid savings and put to your debt then you can use the LOC as emergency money instead of savings. Then once debt is gone you build back up your savings.

[@earthenergyhex]

wow!! Impressive!!!

[@bear7889]

your way took 10 months longer than just using their cash flow to pay off debts. Pay of the CC in a month.. then pay off truck in 6, pay off car in 6 then pay off house in 37 and done..

[@goodkarmagem]

How does the truck balance get paid in 6 months without moving the mortgage payment to cash flow using the HELOC?

[@backslash1233]

Your way makes sense too.

[@dandandkl9048]

I read HELOC loan interest is deductible only if you use the funds to improve or build on a property; plus there’s the closing fees which is 2-5% of limit amount…or are my comments incorrect?

[@7heAteles]

This is a good way to lose your house. Just because we haven’t had a huge economic down turn in 15 years doesn’t mean people will Never get laid off again Recipe for disaster at the next economic crisis (which is coming) when you’re laid off and have no income to get a mortgage on your house and they call the HELOC loan leaving you homeless

[@markm0000]

Honestly it ain’t that much different. If you have a regular mortgage and zero safety net you’ll lose it anyways.

[@7heAteles]

@@markm0000 there are protections in place and laws to help when you cant pay your mortgage in most places. They cant CALL a fixed mortgage. But banks can and have called many other types of loans including lines of credit. Calling just means forcing immediate payment. of the entire loan. something that cant be done with a 15/30 year fixed mortgage.

[@-Jason-L]

Heloc is secured. It isnt going to be called

[@7heAteles]

files.consumerfinance.gov/f/documents/cfpb_heloc-brochure_print.pdf You are incorrect based on the CFPB. It could be forced to be paid in full or have a balloon payment. @@-Jason-L

[@ananivison4090]

Hi thank you for all you do, I can tell your heart is in it. you’re a blessing. Do we save more by paying a big lump sum of $10k or paying an extra $600?

[@mamat792]

Something is just not clicking. Both loans were at the same rate. It's likely the auto loan is very low. Are we just figuring that folks have this cash flow around and don't regularly dig into it/deplete it month in and month our? Is there no expiration for the HLOC? I wish it were clear to me.

[@-Jason-L]

Heloc is a revolving kine of credit. Like a credit card, but for cash.

[@joedaviss9448]

With a heloc do you actually have a plastic card that you can swipe when needed for your gas, groceries etc?

[@Nk-bc1qb]

How did adding that 1st lien add to that cash flow? There’s still it’s payment no?

[@triunnbjorn3610]

Of course there is, but the payment doesn't matter since your tossing in 6k in this example. It covers the required payment and more. The lein counts as credit and a mortgage in one

[@InternetDiscounts4U]

Correct me if I’m wrong, but that 1218 for the mortgage included escrow for property tax and insurance… The mortgage monthly on an amortized loan starts at $845 per month. The auto loan for that monthly at 2.5% would have started as a $27k loan which initial interest is only $56 per month. At month 19 at that balance interest is $40. So he is taking a loans with $885 interest worst case if the mortgage is brand new to pay $929 in interest. It is only going down because the cash flow is now paying down the HELOC. They can just as easily use that cash flow to pay down the other loans and achieve the same results without paying the loan origination fees for the HELOC.

[@HJ25367]

Love these videos! Just one question: do the expenses include taxes and insurance on the home? If not, how are those included in this scenario?

[@beabchill]

You can pay them off using this account and account for them in your expenses. Otherwise, if you decide to pay it from a separate account then that’s your choice (see @11:00 mark)

[@barbaracarbone4658]

How much is the original monthly HELOC payment and for how many years?

[@amyo1585]

Also, from other video where you talked about getting that $10K revolving line to pay down that $25K mortgage... Say in this video, all his numbers were the same (expenses, income, car...) Which of the two scenarios would work better/faster? The $10K revolving credit or the HELOC?

[@VanntasticFinances]

The HELOC can consume more debt due to equity, but small PLOCs can accomplish same results eventually.

[@amyo1585]

@@VanntasticFinances ?? I'm not getting any clarification from our answer :O

[@VanntasticFinances]

@@amyo1585 Please keep watching…the confusion will clear as the concept becomes clearer.😊 Thanks for watching precious lady!

[@rickkern5785]

The HELOC usually has a lower interest rate than the personal line of credit.

[@sjmom5119]

if they default on the HELOC would they run in and take the house faster than they would if they defaulted on their mortgage? the truck and car would be sold and we would buy used cars along with car insurance going to liability only.

[@yaroslavbasovskyy2912]

Why would you put car and a truck which is 3.5% and 2.5% respectively onto the HELOC which is 6.25%? Aren't you losing in this case?

[@scottmenin9501]

What I'm hearing is, throw all your money into paying off your debt and save nothing. Am I wrong?

[@VanntasticFinances]

You’re saving THOUSANDS!🙌🏼🙌🏼🙌🏼

[@AJSwift_]

Youre saving money on future interest payments. Everyone is so focused on paying the minimum amount in the short term and think they are saving, but you will be paying all that back and MORE in interest payments in the future.

[@adrienneyt2250]

I’ll admit I’m baffled about a lot of things here ( I’ll probably have to watch the video a few more times), but would we all agree that the sooner we pay off debt, the less interest we pay…. And the money you’d save in interest fees is like an unexpected inherits from a rich uncle you didn’t know about. Interest fees are the devil. They keep us down and force us into even more debt. Too many of us have been brainwashed to believe this is what we’re supposed to do to survive. This is unhealthy , financially and mentally. I pray we can all begin to embrace a real solution. All the best.

[@alexandert680]

Does this All-in-one loan works same way in Texas ? because for HELOC in Texas, the rules are slightly different.

[@michellegutierrez3847]

Yes. We just got an All in One. A few steps in moving money but definitely works the same.

[@courtneyarnold5541]

Why not just pay the cash flow towards the balance? It works out to the same thing once you deduct income and add back expenses. I’m honestly just curious as I’m trying to decide if I want to do this or not.

[@mikewolkowicz4025]

Bc when u pay it with a line of credit that frees up cash flow. If you just pay the loan with extra money that money is now gone

[@dcole302]

@@mikewolkowicz4025 But if you need to use that cashflow, you're screwed and now owe interest on the heloc balance....am I missing something?

[@AJSwift_]

@@dcole302 if you need to use that cash flow, then just lower your total contribution to the LOC and pocket some of it until you get back to normalcy. For example instead of paying 1250 to a LOC, pay 1000 and keep 250 for yourself. You’ll just have to add more time to the LOC being paid off. And If you don’t max out your HELOC like a reckless abandon, then you can use your HELOC as an emergency fund. Having 10,000 in a HELOC and 10,000 in a saving account would serve the same purpose.

[@myalicantefamily2693]

Can't we just have a line of credit open. Then use the extra cash flow go directly to the principal? Then if we need money, just use the line of credit?

[@evamaria644]

yes@@myalicantefamily2693

[@dadsgarage.alwaysopen]

How can we contact you for assistance?

[@VanntasticFinances]

Thank you for reaching out! Go to my website for my services! Here is a link. 💻Website: vanntasticfinances.com

[@bmorecrabcakes]

I love you. Thank you ❤

[@cyn8733]

My question is if you pay off the house with the heloc, can the insurance come off? Or will it have to stay?

[@tinabreon794]

Our income is 2,200. a month. Using your method. To pay down my bill. We'll never be able to buy a car. Unless we find a rare deal again.

[@Heiswithher]

What's your method?

[@mikemolinag2213]

hi Christy, how soon would you be able to apply for a HELOC after you buy the ppty?

[@VanntasticFinances]

@mike sometimes immediately if you have equity

[@gabygol70]

Do u think I should focus on paying off my mortgage rather then putting money in 401k

[@shamshadzaidi5478]

How to contact you about this?

[@VanntasticFinances]

I have links below each video. Thanks for watching!

[@nishatej3944]

How long do you have to own a house for this to make financial sense? I bought a $500k house last year at 4.75%. Should I wait for interest rates to drop or pay down my balance before applying this technique? Also, what money do you live on when applying this technique? If, for example, my children need something or I want to buy something that is not calculated as a bill, where does that money come from?

[@KantBambangana]

Where is the cash flow going, it looks like is all in the $6080?

[@chrisblake8396]

Thank you I’ve been looking for away to pay off my mortgage in 5 years but thought it would cause the monthly payment to go up as well. I do have a question once the mortgage is paid with the Heloc would I be paying the home insurance and property tax on my own or is that included in the Heloc? Thank you!

[@notmeee7302]

You would be paying those on your own as soon as you pay off your first mortgage.

[@MoorishMade]

Awesome!!! How do we work out the income on a biweekly basis with expenses coming out in between paychecks? Will this work on a biweekly pay or do we need to put the income in all at once?

[@floriebailey2118]

It cones off your LOC and yoy deposit your income to LOC every pay period

[@josemartinez7037]

What if you don’t qualify for a heloc or a credit card because of debt? Is there a credit card out there that will for sure help you?

[@deeannb3735]

You could get a secure credit card to start with then once you have made consecutive payments for about 6 months to ab year go back to your credit union/ bank and ask if they will now turn your secure card into a regular credit card that will be your new debt tool to use volatility backing with.

[@rickkern5785]

Better solution 1. Get another credit card. Put first months income less the three payments on House Mortgage. All expenses go on new credit card. You get float and 15 days of grace period on your new credit card which you pay with next months income. You did not include the cost of acquiring the HELOC--mine cost $500. There is no benefit to paying off a 2.5% truck loan with a 6.5% HELOC. If you add the truck payment paydown and the house mortgage paydown and the cash flow together it will be more than the paydown you are incorrectly figuring. You are giving your system a free month of interest because the current payments are already due when you convert to your system. Payments are always made in arrears. That is why when you go from renting to buying a house you get a month without a payment. Your rent is paid in advance, your payment is made in arrears. Trying to use Velocity with a credit card with a balance from last month is a total losing proposition.

[@jeremypeterson9300]

When you free up more cashflow,what do you do with it? Do you add it to the income payment to help pay off debt faster or do you save it somewhere else?

[@floriebailey2118]

Yes add to payment

[@edennis8578]

You MUST use the additional cash flow to pay down the heloc or this method won't work.

[@ze_german2921]

Extra $$$ Towards the principal of your loan= less Interest paid

[@nettiezdolls6742]

I own undeveloped land free and clear. Can I use my land like a HELOC?

[@allenlandis4504]

can you pay off 130,000. mortgage and two credit cards 6 thousand 3 thousand with a monthly income of 3000. ?

[@larrybryant4827]

It seems that the difference between just paying off the Mortage principal and the HELOC loan is in the way interest is applied to the balance. Can you please confirm this?

[@nmsauditor1a950]

That is definitely a large part. Another benefit to this method is your cash stays liquid in the HELOC. She mentioned they realized stuff would happen. Well, when it does, you have the cash to pull out to handle any surprises. If you do the traditional send all your cash flow to the mortgage company, you are not able to draw the money back out. Your money is working for you and not the bank. You have essentially become your own bank.

[@mevestiller]

So did I miss what he does with the car payment till he’s paid the heloc down to $133k?

[@Masculine1988]

What if Lien is less than the debt value?

[@amandabuysllc8274]

Are you available for hire for consultation?

[@halomaniac74]

On the 2nd month shouldn't his expenses include the FLOC Payment? $2729 plus whatever that monthly payment is?

[@MrsGRock82]

I just watched this one, new to the channel, but from my understanding, by putting all the income to depost into the FLOC (or any LOC) the income counts as the monthly payment on the LOC? So it satisfies each month but still allows you to pay your expenses as well. Thats how I’m hearing it.

[@tyjomeb123]

deposited income satisfies the loan payment. then you can use the cash flow to pay the bills.

[@lvhamilton2720]

For some reason audio is impossible to hear.

[@dwightwebb3100]

I notices all of these calculations are based off your income not changing!!! Maybe you should consider job loss especially in this day and age!!

[@marayafigueroa2210]

Hi how do you pay HELOC using monthly income?

[@omarschez4706]

She never figured on the three months the cash flow she added the whole 6080 income thereby giving false figure because it should had been 6080 minus the cash flow

[@morrisdavis9231]

I see the concept but how do I do all this with a 1500.00 dollar credit card, I have a 1754.00 Social security check. Mortgage 571.95 no car loans,utility bills, 350.00 insurance then groceries, gas so around 1200.00 total expenses so that leaves about 500.00 Mortgage total 90.000. 00

[@Mellowbiker]

I am about 10 years from retirement, have a 2.5% mortgage that is down to the last $120k. Is it worth paying off considering that heloc interest is not tax duductible? We also have a car loan at 3.99% 2 years left, $20K balance, and a heloc at 7%APR with a $40k balance that was used for another car. Thanks for any input.

[@karlolson1871]

No, keep your mortgage. Your HELOC is at 7% right now, so all you'd be doing is essentially refinancing your mortgage at a higher rate that you can't get any tax credit for. That is the only scenario worse than the one she outlined where her "client" refinanced their 2.5% and 3.5% car loans onto a HELOC at 6.25%. This is completely absurd. All you need to do is make HIGHER payments towards your principal. You DO NOT need a HELOC. And you especially don't need to replace low interest debt with higher interest debt. Best this you could do is put higher payments into your highest interest debt first, which is your HELOC, then move on to the next highest interest which is your other car. Don't buy more new cars, they are financial ruin. New cars lose 60% of their value in the first 5 years. Buy 5 year old cars instead. Go check out Dave Ramsay or another financial site that has good advice.

[@jvnp834]

Pay it off. All of it. Be debt free and then use your income to invest!

[@nmsauditor1a950]

Sorry, I just read your entire post. Use the strategy to first pay down your 40k HELOC. Then I would chunk at your house. I have used the strategy since 2017. Paid of a maxed out credit card, got a small 10k HELOC and attacked the rest of my debt. I now have a $65k HELOC, a $40 business line of credit and well over $100k of available credit card credit. We used the HELOC to purchase two income producing rental home. As soon as the Heloc is paid down from the rental purchases, I will begin to do chunck payments towards one rental until it is paid off. Then, will chunck towards the second rental. The strategy works if you budget and stay committed. Hope this help. Good luck!

[@bigwilito]

Am I the only one that realized she added $475 instead of $485?

[@kennycharles6041]

Why be a Karen and be nitpicking about $10!!!

[@skelthouser2730]

So, you convinced him to take his fixed rate 6.25 percent home loan and get an even bigger total heloc with a variable interest rate in an increasing rate environment and you think this is brilliant stuff??? SMH! Some of you people are so gullible. I hope you don't wind up broke listening to charlatans.

[@VanntasticFinances]

Yep! He’s a smart guy with a brain that can do Math! Thanks for watching, and for commenting! That pushes my videos farther❤️

[@EverdayAutodidact]

God bless you

[@Kitechaser101]

Can someone look into my situation I might be in trouble I took a big bite I don’t think I can chew fast enough. Just came across the idea of Heloc yesterday. My situation, 1st home $273k in debt $2450 with 7.37%. This home is is Missouri currently renting out loosing $300 a month most likely will have to sell if we are braking even. 2nd home $406k will be primary $3350 with 5.37% this home in Dallas. I am assuming with we have to add another $1400 in expenses for electric, water, Gas, groceries l, eating out & addition home expenses. We have no car note at the moment just yearly insurance of $1100. We have a $20k credit card debt paying off $500 each month. Our combined income is not the best $7k at the moment after maxing out 401k. Can someone please advise if heloc would make sense for us.

[@ncp3077]

Ty

[@photoalchemygina]

I’m watching all videos I’m wanting to not put any more interest in to banks hands

[@amyo1585]

Two things: 1) I'm missing what's happening with his cash flow. 2) To clarify, the HELOC is basically the mortgage now?

[@VanntasticFinances]

His cash flow is going into the HELOC… his equity. Yes, First Lien does consume mortgage. Thanks for watching!

[@amyo1585]

@@VanntasticFinances I think I'm thinking of Cash Flow necessary for paying things credit cards can't pay. But if you have a HELOC, you can pay anything? So all of your income/cash flow goes into HELOC? So you don't have to worry about having cash flow for anything a credit card won't pay?

[@VanntasticFinances]

@@amyo1585 Exactly! Personal Lines of Credit/HELOCS allow cash withdrawals when needed…without fees being charged, such as a credit card would do.

[@amyo1585]

@@VanntasticFinances Oh Yay! I will reach out to you via email. I likely will need an initial white board consult too!

[@bigdogg361]

The heloc is a new mortgage with apparently 6.25 % where a the truck was 2.5 originally? 🤯 so I guess I'm missing something with the freeing up cashflow when u haven't freed up anything? Basically took out a new mortgage. 🤯🤯🤯😂

[@benshorts5340]

Will this work if you have $0 cash flow?

[@swn69]

Why not just take extra cash and throw it at your principal??

[@amyo1585]

I love you! But question -- How is this accounting for paying your 20% (on avg) taxes due year end? Not much is talked about still putting in $$ for savings. So should we account for this?

[@VanntasticFinances]

If you’re referring to taxes and insurance on home..you would pay that annually out of equity. AND I LOVE YOU, 2!

[@amyo1585]

@@VanntasticFinances Sorry, I mean income taxes (personal and/or business)

[@VanntasticFinances]

@@amyo1585 I don’t think I understand the question.

[@DoctorMcFarlandStudios]

Your income tax is already taken out of your check unless you actually owe money to the IRS every year because not enough tax is taken out. You will want to look for any deductions you can to reduce your overall tax bill and possibly get a bigger refund.

[@maxcorder2211]

You either pay taxes each paycheck or quarterly estimates. Sometimes a combination of both. So, she is using after-tax cash flow numbers for income. If you pay quarterly, then that $ would come out as an additional expense in that particular month. Or, you could set it aside in another account. One important point is to make sure your withholding is equal to the tax you will owe for the year. No sense in giving the government an interest-free loan.

[@RandomLuminosity]

he could have created 75 bucks a month instantly by putting a little over one months cashflow and paying off that CC.

[@edennis8578]

The cc has a 0% interest rate. Why would he pay that off?

[@patriciajoyner9871]

Confusing...

[@mosswayne8061]

Is the HELOC for the same property as the mortgage? thats the only part of the concept im still confused on.

[@smoothsouthpaw]

yes it is

[@Sony72604]

😮 that’s a lot of math lol.

[@FloSunny]

Can this system work with a home equity loan? I can’t imagine how.??????

[@VanntasticFinances]

This system does not work with any LOANS. We need LINES of credit… loans are income stealers.

[@FloSunny]

@@VanntasticFinances that’s a bummer…. I thought I saw a video on how to pay off a mortgage faster than 30 years?

[@ericgardner5548]

Replacing one debt for another, using debt to pay another, HELOC is a variable interest rate and using this method requires extreme discipline. This not for everyone. And tempting to use the line of credit for other things. Not to mention when economics on a macro scale change. And HELOC has a limited time period where you only pay interest.

[@dennisshaw4112]

Not to mention this process is a huge waste of time for no gain. If you just make additional monthly payments to your mortgage equal to the net cashflow ($1,648), pay your other loans as normal, your mortgage is gone in month 68, you car loan gone in month 52, your truck loan gone in month 41. The HELOC method described in this video has you out of debt in month 64, or 5.5 years as she mentioned. Over time, the difference in total interest paid by using the HELOC is $130 MORE. For me, no benefit for much more work (and discipline as you mentioned).

[@gregorypett7266]

I’m lost 🤷‍♂️

[@WayneLong-u5o]

❤

[@steffersonsouza4957]

The Big question is: can the bank ends his Heloc without nktice at any moment and repo his house as collateral?

[@alisatjaden3906]

Yes, I think so...from what I learned when I had a HELOC. I'm too chicken to try it again 🐔

[@joepfeiler5911]

If I by a new truck every 4 years and a new car every 4 years and do some home improvement every year or two, how long does it take to be debt free.

[@nutzin23]

Stop buying new cars and you’ll get rich way faster!

[@willworkforfood819]

Getting a lien or second mortgage on your house doesnt mean you paid off your house! He now raised his mortgage- so its not a good way to go especially with such a low credit card debt

[@-Jason-L]

I dont think you followed this 😊

[@MrWanenglee]

You forgot the car and credit card payments to the monthly expenses

[@VanntasticFinances]

Please see reply under your last “Lesser” statement and rewatch the video for clarification. Thanks for watching!