Pay Off Car Loan FASTER

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[@joshuabenoit3744]

Have you seen new car prices today? They are doing loans for 8 years now because of these ridiculous high prices. I always pay extra on principal to get a loan paid off early and have never paid a loan to the end of term. Another good tip is to keep paying a car note into a savings account after you pay off your car that way you can buy the next one cash.

[@DivineSoul999]

🔥🔥🔥 Good information!!

[@diswazzi1683]

That's a great tip

[@PuddlesLovesBooks]

Always buy semi-used . The depreciation on brand new cars is fast.

[@squadabingo9113]

True. Good advice

[@TristenHernandez]

I’m blown away her expenses Are only 1572. Let’s get a video on how she did that!

[@JumpOffHisNutts]

She living in her moms basement

[@NINJA_INVESTORS]

They live in Texas

[@texasfan8892]

@@NINJA_INVESTORSso do I and I’d love to know where it’s that cheap.

[@smorgasbordtv4092]

no rent or mortgage

[@bigbaby4584]

People do not understand the gifts of credit but once you understand the Conspiracy of Credit your life will be an adventure. I understand very well on how the game is played. Some do not understand the concept of building an empire with your credit. Like they say cash is king but it’s so false but credit is a powerful tool to bring you millions

[@jonjr9]

I live like my late parents. If you cannot pay for what you like in cash then you don’t need it! I have no credit cards, no loans etc. I pay for everything in cash!

[@tanialambert8465]

That would be ideal if you didn’t nd credit to buy things in life but I do try to implement this concept as much as I can in my life

[@tobydobo4080]

Only thing with cash once you spend it it's gone. Using credit in this manner you still have access to the cash you put toward it which also serves to dwindle the debt away over a short time.

[@namaste348]

You paid for you house in cash? When?

[@richeats]

This works, BUT only if you are extremely disciplined. Most Americans I know cannot and should not do this. It will get you into trouble. Just pay extra on your monthly loan when you can.

[@kevinx9225]

Just to add on to what you are saying. The mentality should not only be to pay your debt down but to strateguis to pay it off. Say you have two cards. A $1200 balance and $5000. Pay the minimum on the $5000 but pay the $1200 off in 3-4 months. Then, take that same money and apply it all to the $5000. Decide within a year and a half, I will pay this off. Also, as your credit score goes up, hit the card company up for a better rate or higher limit. You won't use it but it will be there for emergencies.

[@rovers141]

Either way it takes discipline, I'm not really sure why you think one way takes more discipline than the other.

[@richeats]

@@rovers141 That's not what I'm saying at all. I'm saying one way is riskier and more likely to get you into more trouble if you're not disciplined. Both approaches require financial discipline.

[@wmason1961]

How will it get you in trouble?

[@DaveM-FFB]

It's not necessary to pay off your low interest car loan with higher interest debt. You can keep the car loan and make curtailment payments each month. You will still have the car payment, but your balance will shrink quickly.

[@kowal789]

I didn’t actually start doing this until the last 6k of my vehicle loan. My numbers are different, but with a little discipline, I’ve dropped my loan down from 9 months left, down to 4 just by tossing my extra cash on it, the last 2 paycheques.

[@bmurphy4444]

Everyone doesn’t know what the acronym PLOC is 🤦🏽‍♀️🤷🏽‍♀️

[@thomasthurston6656]

Yes your just moving money or debts. Always better to stick with the lower apr. Most of the time you will get a better apr with a credit union. This 1k limit on this card she is talking about they must have some shit credit.

[@mellogic]

Its easy to talk negative about something when you choose not to try shit at all

[@thomasthurston6656]

@mellogic This makes no difference its worse if anything.

[@MoneyAnswers]

In this Car Loan video the monthly expenses are $1,572. If we exclude $286 car loan payment, we get $1,286 monthly expenses. Monthly income $2,905 - monthly expenses $1,286 = $1,619 left. If we simply put $1,619 on the Car Loan (with 2.5% interest) and we do it every month, the Car Loan will also be paid in 7,5 months, but you will only pay $113 interest, which is 3 times less than with Velocity Banking from your example. Meaning - you don't need Velocity Banking in this case. You just need to pay off the initial Car Loan faster using the money that is left after monthly expenses. Or what am I missing? I also recorded the video on your Car Loan example - you can check it and tell me if you see a mistake in calculations. I made my excel file available too. Thanks!

[@aaronlandry3947]

Check your car loan papers... many do not let you make extra payments, only pay it off in full early (for a discounted interest total, you still pay interest but not as much as you would have if you paid it monthly). Other loans allow you to pay more... but the extra per month ONLY goes towards the interest amount and NOT to the principle until the expected interest amount for the life of the loan is paid in full. That why the strategy of moving the car loan amount into a PLOC exists... you can make large payments to the PLOC at your desire and are no longer beholden to the predatory nature of the car loans.

[@glennbradberry3427]

Most loans today let you pay extra on principal. I wouldn’t get a loan from someone who won’t.

[@milfinu]

Great calculation, But lets get realistic, Let's say I have 35,000 car loan left to pay, paying $725. a month for 74 months with 15,000 down. from $45000, with a 14% interest rate what are your thoughts ?

[@MoneyAnswers]

@@milfinu Hi! Could you please specify - does your car loan have 14% interest? Or are you comparing your car loan to PLOC with 14% interest? Then what is the car loan interest rate? From all calculations I made earlier I can say that, if PLOC has a higher interest rate than the original loan - then it doesn't make sense to use a PLOC. You simply need to put all extra money directly to the principal of your original loan to pay it faster - you will pay less interest in the end. If a PLOC has a lower interest than your loan - then you can consider Velocity Banking. But in this case you need to be very disciplined with your finances, because having money "available" in PLOC can be a big temptation to spend more. It's kind of obvious, but still, so many people do it and get into bigger debt with high interest. Good luck with your loan!

[@i.d.6492]

@@aaronlandry3947 not true, many actually do allow you to make principle only payments. You should also ask finance when you finishing your purchase

[@kam3410]

One thing I do love about your videos is actually stepping people through the process, too many people just say the words and you lose the critical steps.

[@LookOutside...]

But it’s an incredibly stupid process that costs stupid people money if they follow it. I think that’s a bad thing.

[@ehderguyyashootadeerorno2313]

One thing to consider too is only one vehicle payment per couple at a time. What we do is first buy my wife a new car, trade in the old one paid off title in hand, plus a check, finance it for 72 months but make double payments to pay it off quickly. After 2-4 years once it is paid off (or a few years later) then look for a new truck for me and do the same thing. This way if we lose a job we can drop the payment down to like $300 pr $400, and we always have a newer reliable vehicle at any given time.

[@KevinPurdie]

but why do you trade in the paid off vehicle? is it to lower the price of the new vehicle, or something else?

[@ehderguyyashootadeerorno2313]

@@KevinPurdie not sure about every state but in WI you only pay taxes on the difference in the new vehicle price vs the trade in. Example you trade in a $20k car for $40k car you only pay state taxes on $20k. You may be able to get slightly more on private sale but then you have to deal with all the tire kickers with no money.

[@KevinPurdie]

@@ehderguyyashootadeerorno2313 i’ve never traded in a vehicle, i find it easier to keep insurance and registration on them, my wife thinks its waisting money but i remind her what is she going to drive if something happens to her current vehicle. it also helps when the older kids fly in, theres a spare vehicle for them to drive around. I also have my very first truck sitting at my moms house that i have to remind her or my brother to crank up at least every month so that when i visit i don’t have a dead battery.

[@mikimiki195]

Here’s simple explanation for paying off any loan early No whiteboard need it Each month you make regular payment if you have any money left after inflation takes 75% of your income than apply to the principal of the loan 👍🏻

[@Karina-xv4nm]

I like simple words I don't understand what she is saying

[@cwglindn]

Personally, I paid off my loans with the extra cashflow. Getting a PLOC requires discipline and accountability, which most people struggle financially with, and could lead to greater damage. This method works, but the danger of everything becoming an emergency solved by credit it what is trapping most people. Use your cashflow to pay off and then start saving your cashflow to pay things off (with a reward card if you want to play games). Delayed gratification will save you.

[@billl2431]

@@coreyfranco7060 The method does work. but you can't go on a spending spree. the interest is a small part of it

[@SuperQueenV.]

True but you could also save that extra cash flow, if all debts are paid, towards a savings account, a CD, IRA etc. and still have a cushion so to speak. But yes discipline is key 👍

[@nmsauditor1a950]

Agreed, the problem comes when you have an emergency and need the cash. That cash flow can never be pulled out of the car loan but can be pulled from the LOC. We created a budget and started using this strategy in 2017. Six years later, we have no debt and bought two rental homes that produce another $1000 monthly income after the note, insurance,.maintenance and taxes. Let's see you do that while simply paying your cash flow to the car loan. We now have a $65k HELOC, a $40k business LOC and well over $100k in available CC if needed. If the housing market goes south, I will be able to quickly snatch up another couple of rentals with an easy 20% down payment from one of my LOC's. I used the strategy to get out of debt and now am using it to produce new streams of income. Get serious, create a budget and be disciplined to that budget.

[@nmsauditor1a950]

As a caveat to my statement above, before starting the strategy, we had cash flow but we went through it each month like water and lived paycheck to paycheck. After getting serious with our budget and using this strategy to accelerate our debt pay off, we never looked back. Set a budget and live by it!

[@stonefox9124]

Typical woman. "I have the answer! Just put it all on credit!" (Interest 25-30%) "why am I in debt!" So dumb...

[@dc100dc100]

There is no magic here, what she’s doing is throwing any extra money at the end of the month against the loan. You can do this without all these complications.

[@michaelfrock2473]

Car loan at 2.5%, man those were the days 😄

[@Mike_OP]

Yea try 8.6% with a 820 FICO score…. These lenders are off their rockers with these interest rates today

[@morrismonet3554]

@@Mike_OP Thank a Biden voter.

[@operator7585]

Still attainable

[@MartinX192]

I just got offered 25% with a 720 and 3k down. My personal credit union was much better but imagine having to take that or have no car@@Mike_OP

[@TheDestineyAngel]

@@morrismonet3554so if Biden gets reelected, do interest rates go higher because that would be amazing? I would be extremely disappointed if interest rates went down.

[@michaelwatkins8406]

Good video, and its nice to be presented with options that perhaps I haven't considered before.

[@janaenelson7786]

Love it I almost understand it I’m a watch it again and I’ll be 100%. Thank you for the information.

[@qwertypower100]

I love you -- thank you for this channel!

[@HK-Guy]

Take the 1333 “cash flow” and add to the back end of the car loan every month. This drops the total interest on the loan. Then use the credit card for the unforeseen expense. And don’t go on “vacation” until car is paid. 1333 X 9 = 13,330 , done in 8.5 months.

[@chessyoshi8626]

So what you’re saying is that you can speed up your debt repayment if you have a $1300 budget surplus every month. This is amazing new financial wisdom!

[@michelesimone6752]

Yes, but you're only having a surplus because you're utilizing a personal line of credit..

[@benitaeason1106]

Excellent job again.

[@ke_instrayer]

Excellent! this is working for my situation, thank you Christy!

[@sharongraves5965]

I just discovered you and the knowledge you are sharing is AMAZING 👏🏾, I just paid off my car loan today, using your method. Were have you been all my life. The information you are sharing is such a blessing 🙌🏾. Thank you 😊

[@VanntasticFinances]

@sharingraves5965 It is beautiful. Isn’t it?? Thank you for watching!

[@AverageHuman7026]

@@coreyfranco7060 how do you figure? Did you watch the whole thing and pay attention? Maybe try watching it a couple times and it’ll click.

[@AM0ERIC0AN]

How did you pay off your debt today, using her method, when you just discovered her today? Makes no sense.

[@tamashucsko5827]

I truly loves your videos. Can you make an informational one on student loan. I need help and I believe you have the knowledge the help many people like me! Thank you in advance moss Vanntastic!

[@adorsey3149]

Beautiful advice.

[@darryltognarelli6769]

I paid off a truck in 9 months!! You have to realize it’s all $ management, as to what you have coming in as to all expenses going out on what can be affordable

[@Mondo888]

Brilliant absolutely brilliant thank you for share your knowledge

[@stevesworld620]

I remember when I saw David Copperfield in Vegas. He cut a woman in half... That was about as real as your arithmetic. Just pay off the loan... paying the 286/ month and the additional 1,333/ month he'll have it paid off in 7 months and no stress or temptation from an additional loan or credit cards.

[@bearman933]

Great video!👍🏿

[@eze3572]

Best explanation yet!!

[@Fitforacting]

Great video! I subscribed 😮

[@wmason1961]

I have done my budget exactly this way for many years. It works.

[@BrianK-zz4fk]

omg I consider myself very educated in finance from home not school but will need too look into this for my best friend as I this he got shafted and pass it along. btw i always pay cash after the car isnt worth the repair cost. thanks for the education

[@JCreole]

286$ a month car payment…..Average car payment today is 1,000$ dollars 😬

[@ygbodybuilder3023]

Yeah I dont know where she getting these numbers . My car payment in 2017 was 345. Now In 2023 it's 596 with way better credit

[@jacobcaeli]

Do you mean because people have two cars?

[@michaelsorensen7567]

Average people are stupid

[@PuddlesLovesBooks]

Are you buying a land rover?

[@michaelsorensen7567]

Mine's $200. Not my fault people are max financing a rolled over loan on top of the loan for their new luxury vehicle. And if you tell me you need $1000 loan then Imma point out all the used car lots with cars for under $10k and ask you to do the math showing how you get to $1k payments

[@edwizard62]

Love your videos. I'm official a Vanntastic groupie haha.

[@xagero77]

Why are we trading the low interest car loan for a high interest PLOC and not simply just paying off the car loan directly? Just because the minimum payment is 286 a month, doesn't mean we have to only pay 286 a month. I'm not understanding the benefit of the PLOC and for a lot of people it could just turn into a nasty trap.

[@ygbodybuilder3023]

Answer this man

[@LucrativeApe]

Compounding vs simple interest. Car loan is low interest but it compounds and the interest is prepaid at the front half of the loan, you’re not actually paying off the interest until you’re about half way through the loan, by then you’ve paid off you whole loan and then some in interest payments. Same as a mortgage

[@kevinx9225]

I'm just a guy who worked himself out of debt. I don't see how getting more debt gets you out of debt. God bless if it works. I say suck it up for a year and plan for a year out. See how much you can do. It's harder when you have a family or other mouths to feed. I went from a low credit score to 850 by doing it the old fashion way. Success builds on success.

[@needhamization]

My mind is blown. I have so much to do. I’m SO glad I found you!

[@VanntasticFinances]

I’m so excited for you!

[@mattpleasant8658]

You need to find someone else. This advice is bad and mathematically incorrect.

[@vinny5727]

@@mattpleasant8658 how so?

[@Mark-8587]

It's the same if she took the 286 loan payment and added in the 1333 cash flow to the loan payment, the car loan would be paid off in 7.46 months at a much lower interest rate.

[@jonsmith7504]

Because she still needs money to live and you can't take money out of your car loan

[@lrod8692]

Essentially that’s what she is saying. You throw your paycheck into this loan but that paycheck is still there to take out, unlike a car loan where you pay and you can’t take that payment out. But then what’s the point if you are going to be taking monies out

[@mattpleasant8658]

@@jonsmith7504 1333 cash flow plus the 286 car payment = get car paid off at the same rate AND you didn't borrow money at 10.99%. You did it at 2.5%. Also, the theoretical person still had the full 15K on the PLOC "if they needed it" like you say, so paying off the car that way allowed more cushion than putting the car into the PLOC.

[@michaelsorensen7567]

​@@jonsmith7504all the other expenses are still in the expense column. OP was recommending throwing the cash flow at the car loan instead of shifting to credit, throwing all the money in, taking a bunch back out, doing the hokey pokey and turning yourself around.... Just to get the same result.

[@belladionne]

I love this woman!

[@deniseriley1949]

same!

[@davanansalick6126]

M e 3

[@maluisa3329]

This is my 20 year old client’s finances. No other debt or children.

[@RedzBizy]

I've been banking like this for years, it works like magic!

[@AS-ng5pi]

Don't do this. Just put your cash flow on the car loan. This is no faster. If you take 286 payment and add 1333 cash flow you get $1619 as a monthly payment on that car. Take the balance of $12381 she starts with divide by 1619 and you get the same 7.6 months but without all the confusing robbing Peter to pay Paul. Just pay off the loan with your extra cash. Getting into more credit card debt is never the smart way to financial freedom. Avoid debt, live frugally and within your means, don't compete with anyone else, save and invest with a consistent mutual fund deposit. You will be glad you did. Dont let 25 year-old you rob 65-year old you of a good and peaceful retirement.

[@blkted2945]

I hear ya but don't forget the interest, you just calculated the principal, most make that mistake. Just add the 2.5% divided into 365 to get a daily rate, since the 2.5% is yearly. Yeah, I watch a few of these videos and were stumped everytime, I just don't get it. I guess the same question everyone is asking but not really saying, who the heck has $1619 (the $286 plus the $1331) to pluck down on a car payment every month? No one lives like that and if so, it is only for a few months. I'm like most people, prioritize high interest credit, pay those off and I have never paid a car until the end.

[@blackprince7510]

She wasn't advocating getting into credit card debt. If you pay off the balance owed by the due date of your credit card statement, you pay no interest. The purchases she is suggesting being made using the credit card are part of the $1572 monthly expenses and you are supposed to pay them off each month. But if you have a cash-back credit card, you will get money back each month on your purchases. There are cash-back credit cards with no annual fee that will get you, for example, 1.5% back on purchases of groceries, gas, and pre-authorized payments, and other cash-back rates for other types of purchases. So $300 dollars a month in groceries would get you $54 back annually. Not much but it is more than you started with. If you are not disciplined enough to pay of a credit card balance every month, you are not disciplined enough to use her PLOC method for paying off the car loan.

[@1badEK]

If you can afford it, just make an additional bi-weekly payment that’ll help drop the principal amount of the car loan.

[@michelesimone6752]

Or dont, make an additional payment. Just make your payments every 2 weeks.

[@timpickard3946]

It still seems that the strategy is to pay $1,619 per month on the car payment rather than $286.

[@mattpleasant8658]

Exactly. You pay it off in the same amount of time AND you never touched the "15K PLOC cushion". If you roll the whole car amount into the "Personal Line of Cushion", you eat all of your cushion space, have less to work with, and pay a higher interest rate. What she didn't say was the car loan is simple interest as well. I would rather not borrow money at all, but if I did, I would rather borrow at 2.5% than 10.99%. Her advice is silly.

[@michelesimone6752]

Where is the xtra 1619 coming from though?

[@JonMoralesLA]

So crazy to worry about paying off a car loan rapidly at that really low interest rate. Most people should probably focus on tackling anything else or investing. This Dave Ramsey level of being against borrowing never made sense to me.

[@chrisrudy1969]

Very nicely explained! Thank you. I was wondering if you might want to discuss using margin in a brokerage account vs. using a line of credit. Thoughts?

[@robertmccully2792]

a margin means you buy at a margin of the cost, but promise to pay the rest. She is saying get rid of high interest rates buy borrowing more at lower rate,, than pay it down fast with the savings of the lower interest rate. You still have to pay.

[@rn6542]

Another great video. Do all personal line of credits have a Variable rate (APR may vary)? Also - is this better than having a car loan fixed rate?

[@bowtiessnation481]

Great info, how can you be contacted in reference to first lien mortgages?

[@David-yy7lb]

I paid off my truck the day i bought it with a check for the full amount off my truck👍🏿

[@uzomarose]

You really do put my heart at ease..........

[@berryae74]

I like the idea of this method but after you switched her food expenses etc.. to the credit card that created another expense that didn't get added to your monthly expenses of 1286. So that should be 1286+credit card payment to equal a new monthly expenses total which would increase your balance and take extra time ro pay off and then that credit card has a high interest rate too. You would also have to be extremely diligent to pay off this debt.

[@nameless5r]

Think about it one more time, see if you realize why you're wrong.

[@blackprince7510]

If you pay off the balance owing on your credit card each month, you pay no interest. The cost of the groceries and other expenses put on the credit card is part of the $1572 in monthly expenses shown. So there would be no debt incurring interest on the credit card. So you are not creating an additional expense unless there is a fee for the cash-back credit card. The cash back earned would, I hope, more than cover the fee for the card.

[@brhardi48326]

When real inflation is 5% or more and likely to stay that way for awhile, you are better off taking as long as possible on a 2.5% loan.

[@timlarson7228]

Can you explain this further? Thank you.

[@michelesimone6752]

You're only paying 2.5% on a loan where today. If you bought the same product, you would be paying about 8%. And now everything is inflated and costs more. So you're paying higher interest rates on something that cost more.

[@noahheinrich6382]

#VANNtastic would you recommend chunking dow on the mortgage first or paying off the car loans first to free up cash flow?

[@jamesnm21]

Get the cars paid off so you can start chunking regularly on the big one. Btw, what's more important, time or money? Time. You only have so much time to get your finances to the place you want them to be and reach your goals before you're dead! Always put time ahead of money and the money will take care of itself!

[@mistyyoung1558]

Just applied for a heloc. Can't wait for Christy to work her magic for us 🙏🤞😜

[@Nathan-uo9yf]

please dont...do the simple math, if she puts her extra money("Cashflow") on top of her regular car payment, her car would pay off in the same exact amount of time. shes doing a bunch of charades and saving 12$ in interest over 8 months...but pretending its a magic solution to get out of debt. there are no magic tricks, look into dave ramsey if you want the best way out of debt, it takes hard work and lifestyle change, but its worth it.

[@jamesd7154]

@Nathan-uo9yf her method does work, but I advise people to truly understand cashflow and have discpline before starting VB. Its imperative to account for all major expenses as well. VB allows someone to maintain cashflow and if done right. Not only can you pay off debt in record time, but also generate wealth to buy assets much quicker than saving. Some of the riches people on earth leveraged "good debt" to build wealth.

[@teacherreads1076]

I just got into an argument with my husband over your video. He thinks the savings is nominal the way you describe it. He doesn't have a growth mindset.

[@theRodofwar]

WOW !!!!!!!!!!!!!!!!!!!!!!!!!!!! Great video. THINGS THEY DON"T SHOW YOU IN SCHOOL !!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[@treebarcca]

Shell game. Add cashflow to car payment. Keep PLOC open for emergencies.

[@tobydobo4080]

Didn't watch the video did you? Lol

[@jaymastertee]

What happens if the line of credit is lower then your car loan? How would that look with this system? You’d still have to pay the monthly car payments from your main account taking away from what you could put on the line of credit each month to get that down.

[@xillcy5980]

Then you'd put all of the line of credit money into the principal of the car... Pay the credit off & the car loan... You still save a TON this way

[@diversity2739]

Thanks

[@Kawboy65]

In actuality, you are comparing a car loan with no additional principle payment to putting it in a LOC and essentially making a very large additional principle payment towards that car. If you make that same additional principle payment in the car loan, then it is payed off in 8 months also.

[@cleartexas]

You can’t put all your income into a car loan like you can a PLOC or a credit card, you’d pay the car down, sure, but then your kids wouldn’t eat that month, and it would be dark too

[@Kawboy65]

@@cleartexas Are you saying you can't put living expenses on the LOC and then put the remaining income on the car loan as well? Her example IS doing that exact same thing. LOCs are not some magical device that makes debt disappear, like she portrays it to be. Her example is smoke and mirrors.

[@josephsgrandadventures]

@@Kawboy65you see what you want to see. Model it for yourself and then determine how it would work.

[@ridub]

Great lesson. Where do you recommend opening up a personal line of credit?

[@beh4846]

I think credit unions are the way to go.

[@jhjaj5321]

Love your videos wish I was in your area What whould you recommend for someone who whould like to learn more about the advantages of using a system like this? Most financial advisors in my area are only interested in large income customers whould a local bank be a good reliable source for info ? Do you offer personal services via zoom or anything like that ? Either way your videos are great

[@VanntasticFinances]

Yes! Services listed under videos

[@cornholenoob]

This is fine, until the banks call those lines of credit in tough times, folks will be left in a very very difficult spot

[@michelesimone6752]

They don't call the lines of credit if you're paying diligently.

[@MzPerr215]

Is there a way to use velocity banking and payoff collections accounts

[@todddooley793]

Interesting, my scenario is almost the exact same. Only difference is, my income is about 500 more a month but my car payment is 550 and it's for 25000. My line of credit is 15,000. I guess I could knock off half of it.

[@jdwright645]

If you just take the delta between the income and expenses each month and apply that to the car loan, you pay it off in the same time and pay 2% vs 11%. plus you don't have to do all the mental gymnastics of constantly transferring cash back and forth.

[@karlolson1871]

Here's another AMAZING (and better) way to pay off your car loan faster. Pay that "CASH FLOW" into your car loan also , and it would also be paid off in 7.64 months. If you're worried about "emergencies" just save the cash flow until your savings balance is greater than your car loan, and then pay it off. Christy's method is erroneous. She is quoting interest payments that you'll be making towards your PLOC, but she never adds those into the equation. And regardless of how it's calculated it will still be more than the interest you would pay on your original loan, which would be less than 300 dollars in that amount of time. She has you instead paying $232 in interest on your PLOC in just the first 2 months. You want to know how to achieve financial freedom? Stop spending money you don't have on things you don't need.

[@6Sanchize6]

I love these simple, laid out videos. You break it down beautifully

[@VanntasticFinances]

Thank you so much!

[@dakmycat3688]

Easier said then done. If you really wanna save cut cable, internet, and fast food. Grow a small garden.😚

[@TheYamayah]

​@@dakmycat3688I agree, but I need the internet!!

[@thefantasyicon]

I can make the video even simpler. Income-Expenses= money left. Apply money left to the car loan. Simple math

[@GrandChessboard]

@@dakmycat3688 LOL, you need land to grow food. So, add buying land at the top of a real estate bubble.

[@mattvillasenor3042]

Praise Jesus!! Thank you

[@grapeape00]

Correct me if I’m wrong but If she just pays her car payment of $286 and adds her $1333 of extra cash flow as an additional principal payment, the car will be paid off in the same 7.64 months she’s pay less in interest. Don’t have to mess around with the PLOC and credit card.

[@blackprince7510]

The credit card part is ok if there is no annual fee for the cash back feature and you pay off your balance owed every month. But it does not amount to all that much money back. If you spent $300 per month on groceries and put that on your cash back credit card, at the end of the year you would get around $54 back.

[@ntxexpress]

If you can't pay your car with a credit card how would you suggest using this concept?

[@paulthompson8649]

Am I missing something? Where do you get an amortized car loan? When I got my truck I was told everyone only does SI loans for cars.

[@jessnevares7861]

So I still don’t understand how this works. I just bought a new truck. Interest rate is 7.5% I have a credit card at 20.24% on purchases. $40k limit. No balance on card. If I pay off truck with the credit card and then pay my monthly income to the credit card and use the credit card for my expenses, id pay off the truck sooner ? I currently send $200 extra to my truck payment.

[@dominicksheppard4900]

The only question that I have would be how do you apply your monthly expenses to the PLOC,Is there a visa/master card attached to that line of credit?

[@garywdowd]

That's what I was wondering, too. How does that work?

[@blackprince7510]

You take money from your PLOC to cover your expenses. So your PLOC balance drops by, in this example, $2905 when you get your paycheck and then increases by $1572 over the month as you pay your expenses. The purpose of using the credit card twofold: 1. delaying the payment of those expenses you put on the card until the due date on your credit card statement. Which would save you a little bit of interest on your PLOC and cost no interest on your credit card. 2. having a cash-back credit card with no annual fee gets you some money back on your purchases. For example, some cards offer 1.5 % cash back on grocery purchases, among other things. So if you spend $300 per month ($3600 a year) on groceries, you would get back $54. But if you are the sort that has trouble paying off your credit card balance every month, it would not be a good idea to put your expenses on your credit card since most cards charge around 20% APR on outstanding balances. Far more than any cash back would get you.

[@themagoofiles5985]

Why not just pay the extra $1333 on the car loan each month? Still increase your ploc for your emergency fund if you want. Keep the car loan on the lower 2.5% interest rate and you'll pay $400 LESS on interest than the PLOC. Also I checked your numbers on your original car loan and it would be paid off in 44 months not 48 months.

[@bambamgold7319]

Pls can you tell me if this system work in uk or just in America alone. If it can I might need your help!

[@jeffwhite543]

I'm new here to this LOC deal.... Can this be done with a home / mortgage? You are very fast in explaining for me so I'm catching here and there but dang, that was wild...

[@divinemiss4284]

I would like to see the total interest comparison between the amortized 4 yr loan (what is remaining on it when you get your PLOC) and the total you pay for the PLOC at the time it is completely paid off?

[@SlayerDork]

If she just kept making the minimum $286 payment she would pay $533 in interest. If she just paid $1619 toward the car loan she would pay $113 in interest and the car loan would be paid off in 8 months.

[@Kawboy65]

@@SlayerDork Exactly, this is kind of "smoke and mirrors".

[@royguidry1311]

@@Kawboy65yeah, if she put every last dime she has into the car loan she would have that thing wiped out at the same speed. In fact it may even be faster if she was paying on that loan with all her extra cash weekly. For that matter you could tell her, just save every penny you make for 7 months and just pay cash for the car. Beautiful isn’t it.

[@MrPetej00]

@@Kawboy65 Its not smoke and mirrors, what the line of credit gives you is access to cash in case of emergency. If you take the whole $1619 and pay it towards the loan balance you have $0 in case of an emergency.

[@SlayerDork]

@@MrPetej00 Ok, so keep the line of credit open but don't "chunk" debt on to it that is at a lower interest rate than the LOC. If you throw your entire income into a line of credit you also have $0 in cash and only the line of credit available in emergency. What is the difference? $25K line of credit, you "chunk" $10k on the LOC you have $15K available for emergencies OR you don't "chunk" anything and you still have $25K available on your LOC. The later option you pay no interest on the LOC unless you need it.

[@ambitious1148]

ok when are you gonna do a vidi about someone w/several credit cards up to the limit(5 of them) with a mortgage and car notes who has no positive cash flow and poor credit so theres no possibility of a HELOC PLOC NO KINDA LOC..... do a vidi like that and get that person out of debt.... i love to see it because thats my reality

[@gbell9119]

open more credit cards if you can. max out your credit cards buying the latest hard to get high-ticket electronic. game systems, laptops or phones. Sell them online for cash. Buy a plane ticket to south east asia and never return to the USA

[@peaceofmind6141]

@@gbell9119lmmfao😂

[@JayBlazingProphecy]

Her new video for you

[@joepawling4735]

So the PLOC has a credit card attache to it, after putting all your earnings in you use the credit card for all purchases?

[@johnwiechel]

Currently have a 11k car loan, but also have a 15k personal loan at my credit union, wish I would of known about something like this sooner lol.

[@72armydad]

Also you need to have a above agv credit score to get a ploc loan most people can't do that.

[@JamesJay2]

What would be the pros and cons of doing this with a HELOC instead of a PLOC?

[@user-ic4pk2ru9u]

I have 4 credit cards at a total of around $7,000.00 debt. I watched a video that you put out about a line of credit vs credit cards. I would like to try what you suggested but I'm a little confused on the difference between the two. I don't think I could have my check directly deposited into one of my credit cards. Can you explain a little more on how to do this? Bypassing the bank and using a line of credit instead.

[@imhooks]

The PLOC is generally through your credit union where you likely already have a checking account with. Or another local CU. Then you can just transfer your payroll amount into that account every pay period and use that account to pay expenses.

[@msmoenergydet]

We put down $3k & I paid off $2k in 9 months by doubling the principle or paying as much as I could! Original plan was 6 months & a day! Was a lil longer due to life/unforseen circumstances! Credit took a slight hit for not taking the 2 years! Then, jumped due to lower utilization/debt to income ratio! #DebtFreeLife #Discipline #PayOffDebt

[@jrcook927]

So if you used all your spare cash on the regular car loan instead of the LOC, how would that compare to total pay off amount and time?

[@Mandy138Cool]

You'd have to factor in interest rate (break it down to per day) and then check contract for any penalties for paying off early. Additionally, your credit won't get a boost until x-months *after* the car loan is paid, whereas with the LOC, you are continually 'stacking' it with every net positive gain on the principle.

[@toyajones2434]

I would love to see an example of where a person does not have any extra flow...or where your income and expenses are aither equal or they don't have any extra money and still pay off debt

[@beh4846]

she has several videos on how to turn a negative cash flow into a positive one.

[@justhere4721]

Extra hours at work. Temporary Side jobs. Cut back on non essentials such as eating out, daily Starbucks, bar tabs, vacation trips. You'll be surprised at how much it all adds up to.

[@10annsilversnake]

What if I use a credit card to do this? Or is a loc the only way this works ? What’s better ?

[@ViewerAbuser]

Great. Now do the math for putting the cashflow towards the original loan instead of using the PLOC with the assumption of no pre-payment penalties.

[@investmentanalyst779]

Original Car Loan (over 4 years): Monthly Payment: $271.32 Total Interest Paid: $642.25 PLOC Strategy (paid off in 7.64 months): Monthly Payment: $1685.31 Total Interest Paid: $494.78 Applying Extra Payment to Original Loan (paid off in 8 months): Monthly Payment: $1685.31 (combination of original payment and extra amount) Total Interest Paid: $109.14 Don't use LOC...

[@billhood6109]

Am I missing something? It would seem logical to just add the $1333 to the $286 monthly payment and wouldn’t that get the car paid off in a little over 7 months? And she has the credit card in case of emergencies. Or does that interest really make a big difference in how long it takes to pay off? Sincere questions. Love to know what you think.

[@CharBuilds]

The difference is what she said at the end one you pay that note the regular way that money is gone for good the ploc way the money is always there to play with

[@CraigSmith568]

@@CharBuilds If you are playing around with that money you aren't paying off the car loan. You can't borrow your way out of debt.

[@colbyturner7182]

Your absolutely right. This video insinuates the individual would use every dollar of extra income towards paying off the car. What doesn't make sense is why you would ditch a lower interest rate loan for one almost 5x as high all for the sake of having the money if you needed it. Why would you not just make the extra payment on the lower interest loan to pay it off in 7 months while keeping the 15k ploc for emergencies?

[@TheMattyB]

@@colbyturner7182 She's paying off the car loan immediately, while only paying interest on what the direct deposit/cash flow doesn't cover each month. She needs a video on why this is cheaper than the extra payment (which is still a great way to do things). Maybe she has one I haven't searched.

[@cavscout62]

@@colbyturner7182- The higher rate is simple fixed rate interest, the “lower” rate is Compound interest.

[@seeyaatthebema]

Hi Christy, thanks so much...I learned about this concept from you. I am paying off my car loan, but the bank continues to charge me interest though it's less for a large payment. I have a BLOC, but it's not big enough for the whole car loan. Should I transfer the entire BLOC limit to the loan? Thanks so much, you are a blessing to many!

[@Jesus-kt5dc]

You could, but I wouldn't recommend it. The advantage of a BLOC is that they don't focus on debt to credit limit, in the same way they do on the personal side of credit. They mainly focus on, on time payment. I would say go with the 2/3 method, just in case of emergency.

[@anthonyjohnsonjr8865]

Divide it into 3 chunks when you pay a chunk off repeat then you won’t have all your credit tied up this is just another way of doing it

[@samscouponingadventures5106]

😅 this maybe a silly question but where would you go to get a Ploc? Do I get it from the back or is it a credit card?

[@velocity_banking_soldier]

You can obtain a PLOC from a bank or credit union.

[@lv1543]

I just saved up the value in cash and bought it outright

[@stevefrankart773]

No need to go through all this extra work to have PLOC. Just use the 'cashflow' to make additional principle payments. The total debt disappears at the same rate without the risk of having an emergency expense (like a overnight vacation?) end up on a high interest PLOC or credit card.

[@oscarballesteros1065]

I sure need your help

[@darthmike5497]

Makes sense. Most people can’t take every dollar that they have and put it towards 1 bill. Would the car be paid off faster is the diff between the 2905 and the 1286 was just paid as principle on the car loan?

[@carrabloyd]

Since interest is front loaded on car loans, if you pay it off before the loan term, are you refunded the interest?

[@raysmith447]

How can I set up an appointment?

[@eluzaigalvez2865]

What happened to your bank account if you are not depositing money they will be charging you for not making deposits.

[@letsgorangers5264]

I look at that whiteboard and it might as well conclude with “E = MC squared” because I have no idea what’s going on here.