Save $15,000+ With This Simple Trick. NOT TAUGHT IN SCHOOLS…Why?

[@davidgaris2645]

If you are reading this I will tell you, I am 70, been in debt most of my life, by my choice. Things change and i want to end my debt and payments without selling off inventories. I have been watching Christy for about 2 weeks and this is confusing at first then things start adding up and making sense. My advise is keep watching her youtube and you will understand it too !!!

[@VanntasticFinances]

Thank you, David!❤️

[@RosteeveBellier]

I appreciate your testimony, and I'm committed to improving myself as well. Thank you.

[@Lifediscussiontrends]

Line of credit makes more sense

[@GUITARTIME2024]

Downsize. You're cruising into golden years.

[@Patriciaking-j3q]

​@@GUITARTIME202460 yrs young and understand what you talking about 😂.

[@chanchopanza]

This is what high school classes should teach you, useful real life situations

[@raphymartinez]

God please no

[@VanntasticFinances]

@chanchopanza I completely agree!

[@thomas8734]

High schools should teach proper math and home economics so you don’t fall for this crap

[@Strawman333]

@@thomas8734Why in the world would government indoctrination centers do that? Public schools are for keeping kids dumb. So they can get away with the Ponzi scheme, that enslaves us.

[@saaramohamed8921]

they DO teach this to business majors which everyone makes fun of

[@michaelaschilling1828]

Two month in, auto loan paid off, down to one cc. The chains came off, I feel so liberated. Thank you!

[@VanntasticFinances]

Beautiful!!

[@SavedbytheCents]

Why though? How does this save you money if you can't pay most of your bills with credit cards? I would also look at videos that address some of the major issues with velocity banking, such as when you get paid, % of accounts you can pay with credit cards, etc.

[@pinkdiamondmindset]

Awesome! And ignore the naysayers. Some people will find a problem with every solution. Glad it worked for you. Case closed.

[@vickyrioslujan8277]

@@SavedbytheCents Even though she states that you can continue with your lifestyle, learn to ease up a bit of your spending habits and pay that towards your credit card balances, it's working for me; my credit score has gone up by 30 points!

[@luisdr01]

In this case, she will be paying $2,528 a month towards her debt, of course it will be paid off a lot faster and therefore less interest overall. If she was to apply similar payments to her original loan ($2,445 a month) the loan will be paid off in 15 months, only $2,132 total interest. Also, not everyone has $2,500 a month left after all their expenses are covered. If that's the case, she should save for her vacations and pay it cash.

[@juicy2fresh]

I just replied something similar before I saw your comment. I’m glad I’m not the only one who recognized that her examples were not “apples to apples”

[@takurorobinson5484]

Exactly. This video is very misleading.

[@Patriciaking-j3q]

​@@juicy2freshi know right 👍.

[@Patriciaking-j3q]

​@@takurorobinson5484you ain't lying.

[@bepreparedforwhatscoming4975]

​@@juicy2freshhow is this video wrong? The $2422 paid in the first month includes her living expenses. The other option is mor expense WITHOUT including her living expenses. This video shows the difference with a 1y vs 5y loan. It's really that simple.

[@rightright6582]

60% of what u pay into the LOC can be reused while lowering the balance every month. Loan 100% of what it is paid into the loan, can not be reused, it is gone into a blackhole....

[@cusebaby10]

Thank you for actually SHOWING us on a white board, breaking it down, and explaining everything for us! I really appreciate your help, thanks again! 😘

[@VanntasticFinances]

❤️

[@bettyjo4429]

⁠rl ll lll 6:21 😅😊😊

[@ofacesig]

Jeez... We're not seeing the forest for the trees here. If we have to take a loan, to go on a trip, we can't afford it. I'm 42 years old and paid off my home at 39. I have no car notes, and no personal debt. This is crazy people. Live within your means!

[@proudbirther1998]

Well Said! There are many INSTANT GRATIFICATION people in America.

[@Sarah-psalm127]

She definetly messed up doing that. But the debts already there. So now its time to fight your way out of it. I hope she learned from this mistake.

[@lauraapotter7911]

Good for you. She's here to help ppl get out of debt. This may not be for you but it's helping ppl that are in debt, she never encourages getting loans

[@ryebread447]

Man I still have 20 years left on my mortgage

[@vickyrioslujan8277]

Right? But not everyone thinks the same, and there are solutions out there for everyone. Be gentle with your words.

[@jaymorgan.]

You better really be secure because if you lose your job then all that effort has gone down the drain.

[@mrq6270]

Good point

[@TheATINurse]

At least your debt will be much lower with this method.

[@jaymorgan.]

@@TheATINurse really? What good is it to be in lower debt and be homeless? I would never pay all my debt in this manner off and be cash poor.

[@vickyrioslujan8277]

Every problem has a solution.

[@johnramsey3909]

Why would a person who saves $2500 a month need to take out the $33000 loan in the first place?

[@suporiaa6826]

THAT PART.

[@LittleChip91]

At 18.55% no less

[@ClintonGalton]

The trip to Hawaii. At the end she states she doesn't care if someone takes a 30 thousand vacation

[@msladebeatz]

Seriously

[@creamabdul-jabbar6722]

How does one save 2500 a month I don't even make that a month

[@cnrmoose]

pretty sure paying $2528 a month will pay anything off faster than paying $804, regardless of what type of loan it is

[@zdenkakoren6660]

Problem is you have to earn at least 3000$ per month .... rent and food lol

[@dilekuz9565]

Exactly. On the left she’s only paying 804 on the right she’s paying $2528!!

[@Bpantro]

@@dilekuz9565 if people have mortgage and other bills, not debt. is just makes sense to only pay $804 of your paycheck than over 2k of your paycheck. right?...

[@NotTelling51]

She's also adding expenses. Don't forget that part. ​@dilekuz9565

[@MKB717]

If the person in this scenario made extra payments on the loan on the left (equaling a total payment that is the same amount paid on the right - $804.60p&i + $1723.40 extra payment) they will pay off the loan on the left in 15 months at a total interest paid of $3,530.75 - it's just math.

[@mightbegenius]

That's what I was thinking. Can't you just pay more than the minimum? It shortens the loan quite a bit.

[@toniannbarandon-o1j]

This is for people who can't pay extra. They are on a fixed income.

[@vickyrioslujan8277]

Yes, but if it's you who's in the hole, this will make a lot more sense - to you. Be nice with your words.

[@vickyrioslujan8277]

Christy, I absolutely love your teaching style, it's so easy to follow. I thank you because it is helping me. But you know what? I just can't understand why people who don't need this kind of assistance don't just go elsewhere instead of just being negative. That is not what us that need your wonderful help need. It's so insulting.

[@Boots_in_Texas]

Income $4,438 minus $1,910 expenses= $2,528 that can also be applied to the scenario on the left. Which means that loan will be paid off faster than the one on the right, since the monthly interest is lower, and you don't risk losing your home for unsecured debt.

[@chrisper7527]

What you don’t understand is that the payments on the left side is “front loaded” with interest. But yes, over time, it will be paid off, but you will also pay a boat load of interest.

[@MelanthiosX]

I did not consider "front loaded interest" for those types of loans this method is good, however if there is no front loaded interest the load, the option with the least interest is best, then you just dump in as much spare cash as you can to repay it.@@chrisper7527

[@Peace-nm6bx]

Yes. Thank you. You could have saved a lot if you send extra payments correct?

[@Boots_in_Texas]

@@Peace-nm6bx exactly! The key to pay faster is the extra payments.

[@unyieldingabyss]

That was truly eye opening! I hope this person immediately rolls that loan over into their line of credit

[@hildalopez1252]

Can one roll over a loan to a line of credit? If yes, this can help my son greatly!

[@MyRook]

Clearly you and everyone who liked your comment doesn't know this is an incorrect way of paying off this kind of debt.

[@wmbinnj2763]

not mentioned is that if you put higher prepayment into the LOAN payment, you can accomplish the same. I believe that mortgages are no longer permitted to carry a prepayment penalty but not sure of the terms of the loan. Anyway . . . if you prepay the difference between $4438 less expenses less $804.60 it comes out to around putting $1700 monthly toward the loan. equivalent to 3 payments and the total interest paid will not be $15K. So we are comparing apples to oranges in essence (no pun intended).

[@harryleon3307]

Amen. The Lord is using you in a mighty way. Glory to God!!!!!

[@vickyrioslujan8277]

Christy, praise God for placing you in the paths of people who can and will use your advice. Thank you!

[@VanntasticFinances]

@vickyrioslujan8277 My pleasure! God bless you on your journey!

[@dc100dc100]

In your velocity model, you are contributing more to the payments of the loan, basically saying that anything she doesn’t spend will 100% go against the loan. She could do that in the first example also and come out ahead because the interest rate is lower. Also, using a heloc puts your home at risk for a vacation. Why put your home at risk and pay a higher interest rate for a vacation?! This is the stuff that gets people in trouble.

[@lennylipe6434]

Yes, she's not getting much leverage to pay down the LOC at the higher rate. She's basically throwing everything at the line that she has extra (equaling just over 3 payments on the loan, $2,528). Another approach would be to pay triple payments on the loan for just the first 12 months. If she gets in a bind (it happens) she's still ahead on her payments and can skip a month or just pay a normal payment. IF she toughs it out for the first year, there is $3,492 in interest paid and then only $571 in interest in the final 10 months, while paying only the normal $804.60 payment during the last 10 months. If you want to pay extra to save interest on a regular loan, you best bang for the buck is in the first year of the loan. A balance transfer offer works wonders on that first year, too, to pay down a chunk early in the loan.

[@nicolenunya984]

I thought the same thing about the payments into the loan versus the line of credit

[@nicolenunya984]

@@lennylipe6434I agree

[@brandtanderson777]

This is a banking scam to get you to leverage your assets for much less than the asset it worth. Smart money says save the 2.5k per month for 13 months and save 4k in interest and leverage nothing. The banking industry has convinced us we need to live in debt.

[@ADR7707]

This is not the same comparison. She could throw the extra to the loan just as she does to the line of credit. Who risks their home for a vacation?

[@melaniepierce305]

This was the best explanation of the comparison between a loan and a line of credit and will be very helpful to many people! Blessing to you and everyone that are watching your videos and taking action to get rid of debt the smart way!

[@VanntasticFinances]

Thanks Melanie!

[@timothyschutz2765]

Huh? A line of credit is a loan….only when you don’t pay it, they can take your house. Wake up.

[@melaniepierce305]

No, a personal line of credit is not tied to an asset, as in this example, this women does not own a home, she is living with her mother, in her mother's home. A personal line of credit is like a revolving credit card with a max. limit based upon your credit worthiness. The difference is a line of credit gives you access cash to pay for other debt where you can't use a credit card to pay the other debt(s). It is given to you based upon your credit score and the relationship you have with that bank, as they know your income and credit history. So, the whole point in velocity banking is the way the interested is calculated differently in a line of credit vs. a personal loan or home equity loan. They have different terms of repayment, and the way interest is calculated. There is a difference between: Line of credit vs. a Loan (home or personal); * In a personal or home line of credit, interested is calculated only on what your average daily balance is per month, which fluctuates as you pay it down with your lump sum paycheck earnings (reducing the balance in a large chuck payment), followed by smaller incremental additions to the balance, as you withdrawal cash from the line of credit to pay other debt/bills etc., throughout the month. You are only charged interest on what you borrow from the line of credit, not your max. limit allowable. * A personal loan or home equity loan is for a set amount of funds that they give you the cash all at once and you agree to the interest rates and the repayment terms, which they already calculate the interest for the terms and front-load the repayments with you paying interest first, which unless you can make much larger than the minimum payments you are not knocking down the principal amount of the loan $ amount, for the first several years of the repayment plan! So overall you pay more in interest over the course of the loan, if you can only afford to make the min. (or close to min.) payments. If people had more income to pay down way more than the minimum amount, yes they would reduce their debt faster in any form (Home loan, Personal Loand, CC, or LOC) , but the whole issue is that each person has different circumstances and their situation just may not provide them with more income to pay off debts in larger lump sum payments and still pay for all of their basic living expenses of rent, food, medical, necessities etc. Yes, if you don't keep paying back into the line of credit ( through transferring your paycheck into the LOC each month as your payment to the LOC) they will probably shut down the line of credit and your credit score will drop and your back to square one. But this Velocity Banking strategy, is trying to get people off of the credit card/ loan hamster wheel and paying down debt in a way that is manageable, and they can make progress on reducing debt and incurring less interest overall, through this method, and still be able to feed themselves and keep a roof over their heads!

[@robertweekley5926]

​@@timothyschutz2765 - You are speaking of a "HELOC" - Home Equity Line Of Credit!" And, she said, change from having your Pay deposited to your Checking Account, to having it Deposited to your Line of Credit, each and Every Pay! So, your Line Always gets a "Timely" payment, so they aren't taking your House! There are also High Limit "PLOC's" As well! (Personal Line Of Credit), that are Unsecured, so, no, with those, they don't hold your Home, as Security!

[@troytakekawa3453]

Great explanation! I appreciate that you wrote out all the math and can show how you obtained the numbers as well as difference between the Line of Credit and Personal Loan. I do something similar with my mortgage in order to save me time and money. Less I pay in interest, more I can apply towards principle~ Keep up the work!

[@CB-vg1wq]

This is great! Thank You! Here are other ways to save $$: 1. Thank hard about on going subscriptions and get rid of the ones you do not need. Many people toss $50-$100 dollars out per month. I got rid of movie subscriptions. Now I pay per view. This is cheaper for me. 2. Return items you do not use. Clothes, hardware etc you do not find are working out- bring back to the store. Keep receipts. Know the stores return policy.

[@peacefreedom4930]

But she paid a lot more each month towards the principal. She could have done that on the loan Under your example of the line of credit she appears to put $2,528 (the entire remainder of her income) towards paying off the debt. If she did that with the 16.12% loan it would be paid off in 11 months and the interest would be $2,653.20.

[@ensky5330]

Agreed, this video is horrible advice😅. the auto loan is superior and can just be paid off early like you said. and she has the audacity to say "it's just math people" lmao. People over complicate money and finance so much with videos like this. Get the lowest rate you qualify for and pay that down over time if you desire to be debt free.

[@adairishernandez-cabrera3664]

She ain't paying extra. She is using the LOC as a checking account. Her savings are seating in the LOC as a result is counted as a payment wich save her money. You can't do that with a loan cuz you can't use a loan as a checking. Cuz once you pay principal in a loan you can't have it back.

[@adairishernandez-cabrera3664]

Let's say she pay 2 k extra every month in both cases. In the loan she will find herself with the loan pay it fast but without access to capital in the case of an emergency. In the LOC she can access the principal any time. So if an emergency come she can use those extra payments instantly. Which lead to people not having fear of overpaying.

[@peacefreedom4930]

@@adairishernandez-cabrera3664 I understand that. However, she isn’t only allowing her savings to sit in the account for the purpose of decreasing the interest. She never takes it out. That means it’s payment. She could have done that on the loan. The only benefit of this method is the freedom to take the money out if you need to. In this particular case that freedom costs more in interest.

[@peacefreedom4930]

@@adairishernandez-cabrera3664 You know what the rest of us do to eliminates that fear? We have a 3-6 month emergency fund.

[@cmarie9817]

OMG!!! I have to admit, the first time I stumbled onto one of your video shorts, I had no clue as to what you were talking about. But once I actually took the time to listen - talk about a lightbulb moment! Thank you!

[@crandallvarnell5114]

New to the financial realm. How can you compare these two? On the loan, you are making the minimum payment of $804, while the second you are putting in (after expenses) $2,528. Therefore, I don’t know how you can compare the two as “equals”. To truly compare them, you would need to pay the loan minimum of $804 plus the additional $1,724. You are putting in equal payments for both loan and line of credit.

[@luisanagaribaldo1220]

God blessed your channel for what you are doing to help us 🙏❤

[@dac0181]

You should show the Loan being paid with payments of $2500 just like you are showing being paid on the Line of Credit.

[@dev.n.7377]

You only pay $3072 :) . you are in fact overpay $1000 atleast with her approach

[@PressPowerPlay]

Most regular loans are built with the interest heavy and being paid first. So if you just go in and pay $6,000 you're just paying the interest. The principal is paid mostly on the back end of your payments. Some loans have an early payoff fee and that kind of thing. The reason this works is because your interest is calculated daily or monthly on the line of credit. The interest is set in stone on the loan.

[@Mrs.SeriousAboutMeals]

I’m so glad this placed my finance no longer in question. I was taught the right thing and I’m satisfied.

[@malone7655]

📌 *Nice video, love how you take your time to educate your viewers. You gave me the mindset to invest my savings now I have made profits over $120k Right now and still making more , I am enjoying a good life with what I made investing. Indeed ‚building a Portfolio income (investing) through a licensed investment adviser is one out of many ways to earn passive income.*

[@rickybishop8388]

That's awesome. I dealt with crypto last year on Robinhood, tried some index but didn't take it out so I lost it by the end. Any consistent strategies?

[@joannathesinger770]

SCAM ALERT!!!

[@ForbiddenFish]

Just so everyone knows, this @malone7655 is a bot, they keep repeating the same message in other videos/message boards.

[@beyondthebounce23]

total scam post

[@matthewchambers5477]

But if she did the same thing on the loan side. She would payoff the loan in 11 months and pay only $2653.20 interest payment by making an additional payment per month of $2528. Which is the amount left after her expenses per month.

[@jamessnyder1994]

What she’s not telling you is that instead of an $800 payment you’re now stuck with the $2500 payment so it’ll be paid off in 13 months, but by the way, you will never have an extra dollar to your name for 13 months almost a year

[@carolgallagher1814]

Thank you so much for helping the the little man... You are original and smart, please disregard the copy cat's. And you are a woman with a mission who believes in God 😊

[@VanntasticFinances]

Thank you so much!

[@dixiebell7011]

Kristy, I had to jump thru hopes to get a HELOC on a rental because we had it in a trust. It cost $ to do that. We had an amortized window installation loan to pay off. The representative who processed the application told me a lot of folks are doing this. I think that is a result of education videos like yours. You are making a difference. I expect to save $11,000 in interest over 15 months and eliminate at least 12 years of payments. Then, we will attack the mortgage. I tell everyone about this. We are frugal, use CC rather than CC using us, we are retired and have enjoyable side hustles. But velocity banking is more powerful than all that.

[@cw6979]

To be comparable shouldn't you apply her net of $2528 ($4438-1910=$2528) against the loan at 16.12% just as you did against the 18.55% loan ?

[@johngreg12]

Bingo! These velocity banking youtubers are either scammers or they are dumb! It has t be one or the other. They ALWAYS compare apples to oranges. On one side, they will pay off the debt with the minum payment only without throwing the left-over cashflow onto the principal. However, when it comes to velocity banking, they will pay the minimum payment but will also throw all the left-over cashflow onto the debt/principal. This will not reduce interest unless the line of credit has a lower interest rate than the original debt. It can also help if the original debt does not allow principal only payment or any payment over the monthly minimum due. I can't believe the number of people who don't see through this numbers-salad that does nothing to reduce interest paid.

[@joanndamico5931]

A personal loan (vs a Loc) will not allow you to make a payment and then reuse the money available. Once that payment is made, it's gone.

[@johngreg12]

@@joanndamico5931 doesn't make any difference. this exercise is simply moving money around.

[@MyRook]

@@joanndamico5931 Yes but if she has a line of credit she has back up. In her example there's no extra spending..Only expenses. if this is the example given then the same concept applies when paying off the loan. Just keep the 33k line of credit at zero until you may need it.

[@markm0000]

You have zero cushion if you spend your entire check on debt. Doing this in the video you have thousands in available credit to use. Also the line of credit is simple interest and credit card debt is compounding interest.

[@nmsauditor1a950]

I have been using velocity banking since 2017. I don't understand why people can't figure out that you have to consider rate and time, not just rate. Would you rather have a $100,000 loan at 3% for 30 years or a $100,000 at 25% for one year? Rate and time folks, rate and time!

[@juanitagaiff5170]

Fantastic! May God continue to bless you intellectually as you honestly give each one who is wling to learn the opportunity to achieve and excel.

[@Mytagz]

This is incredible! Somehow out of nowhere one of your videos popped up in my feed. I had never heard of you before. I wasn't even looking at finance videos so I don't know why your video came up, but I clicked on it. It was one similar to this one. When I first heard you say to move the income over to the card, or line of credit, I thought "this lady has lost her mind!!" I was about to click off, when you then discussed how the payment is not only satisfied, but you then take your expenses out of that account. You showed how much money you save month over month, and how quickly that debt can be paid off. I then thought "this lady is a genius!!" I have now started binge watching your videos! Once that light bulb came on, I am excited to try this! I can see how you would have to be disciplined and not exceed your monthly expenses though. I believe I'm disciplined enough that this will work for me. Thanks so much for sharing this great information!

[@Janz32]

God bless you Chrissy and thank you for your help and sound advice. ❤

[@Scott-sm9nm]

The example is confusing because you are not paying extra each month for the personal loan above the $804.60. For example, what if you make an extra payment on the personal loan of 3633.40 (ie. 4438-804.60). This seem misleading?

[@vickyrioslujan8277]

Christy is talking about obtaining a line of credit for $33,000.

[@doug8056]

She would have paid even less if she just put the same amount on the original loan at the lower rate.

[@vickyrioslujan8277]

Maybe she didn't qualify for a lower rate.

[@chevy11786]

The first loan has 4 year terms. Of course she is paying more in interest due to it being 4 times as long.

[@eljuancho2]

This is what I love about velocity banking! Getting ready to get my first personal line of credit from a credit union! ♥️🙌 gtfo the matrix 💪👑💰✈️

[@TritonFrontier17]

1) Never Ever Ever borrow to go on a vacation. Run like hell away from debt! Pay off all your debts first. Get rid of your credit cards and lines of credits!.,............If you want to go on a vacation SAVE the money first then you get to go on vacation. Why doesn't this woman tell people to avoid debt at all cost is beyond me!

[@alexvalencia6124]

What’s the use of paying off debt if your going to get back on it by borrowing for a vacation

[@harm76]

I just started today! I will keep you updated and may God continue to bless you - thank you

[@andrewhg1323]

The difference is that you are putting all your income in to paying the debt (no cash flow), and in the first scenario you still have free 1700 dls available every month (cash flow), no need to have a second credit line you can do the same on the first scenario and will pay in the same 13th month, but remember no fun or cash flow for a year and 3 months, it worthit couse in the 14th you can spent 2500 every month if you want ; )

[@bobball3645]

You are awesome! And a Godsend! I’ve been watching your channel for about a month and a half now and I get it! I finally really understand. You’ve opened up things that were not possible before! Many thanks and God Bless You!!!❤

[@VanntasticFinances]

God bless you on your journey!

[@tdfulton1]

Goodness the comments on this vid! I have been binge watching and scrutinizing. I find the strategy sound and an answer to prayer. I hope these people that are quick to criticize will take the time and research their perceptions. They are not seeking the clear picture of the “velocity banking” concept. I know the old way of thinking and have done it and kept the debt so much longer than I needed to. Now I am attacking my debt. Payin it down so much quicker!! And now looking into future income producing retirement finances! All because I learned the “velocity banking” strategy! Yay-moving past the debt into financial freedom!!!! Thank the Lord for Vanntastic!!!

[@rodbowles3104]

How about this. Don't take loans and you won't pay any interest to the banks. Don't just give away your money. Save for that trip and when you can pay for it in full then go. And pocket all the interest you would've paid and use that money to invest to make more money and you can also be generous toward others

[@SirCrazyPretzel]

Agreed. Not to mention she mentioned the person living mortgage free/rent free per month. Anyone who is middle class or lower is going to usually be paying a rent or mortgage payment per month and that isn't cheap, especially with the inflation and poor economy right now. Most people are not going to be able to drop $1900 on a loan payment and have money left over for their other bills, kids' expenses, etc.

[@truthbtold6118]

Stopping by to tell you, I love you lady !

[@VanntasticFinances]

@truthtold6118 I LOVE YOU, TOO!!!

[@amueller6852]

This method is So awesome! Thank for the teaching Christy, you are such a blessing!! 🙏🎉

[@VanntasticFinances]

Thank the Lord...HE is SO Good!

[@gullybull5568]

Dunno if your a teacher or not but you should be. Im a 15 year LO and really enjoy your breakdown. ❤

[@MagneticUnicornVlogs]

This is so amazing 😍 i had no idea to take a loan for a vacation! Showing me different doors that can open thank you ❤

[@paulk8121]

Wow. So simple. I feel stupid. Thank you sooooo much !!!

[@cys1964]

I love VB but it's kind of comparing apples to oranges because cash flow is going towards the payments on the line of credit, but not on the loan.

[@MikeHobbs]

Ya but not very many people are comfortable putting ALL extra money into a loan when there is no way to re access it so they are too afraid to put the extra payment or put very little extra. With a line of credit people literally put every cent of money they have and feel good about it. Which in turn pays it off way faster with peace of mind knowing you can re access the money if needed. Mindset is a huge part of paying off debt.

[@cys1964]

@@MikeHobbs Yes, I understand that.

[@cys1964]

@@MikeHobbs You edited your reply. I received the original in my email.

[@cys1964]

@MikeHobbs No one would be required to put ALL their extra money into the loan, would they? I'm discussing the math and only the math. It would be good to see the difference comparing apples to apples, don't you think?

[@MikeHobbs]

@@cys1964 well I’m just saying yes you are right of someone puts all available cashflow into the loan. It might actually be paid off a little faster than the line. But no one in their right mind would ever do that since there is no access to the Money once put into the loan. But they do have full access to that money if put into a line of credit so people are more willing to put every last cent they have into paying down the debt. That’s the whole purpose of velocity banking to put ALL income and expenses into it essentially using every dime you have to get rid of the debt and still have access to the line of credit if you need the money.

[@georgenaponce2775]

I just found and starting watching your videos yesterday and I've already learned so much! Now I have a plan in my mind on how to get debt free and I owe all the thanks to you! Thank you!

[@MimaHope]

Thank you for the post. I understood what you did with each example!

[@scotthenderson4376]

This is great info for so many people. I wish I could use it myself but I'm debt free except a interest free car.

[@ld1042]

Christy, once again thank you for your time and consideration by showing just the facts of how to look at finances a different way!

[@artlover4ever974]

I would never borrow money to go on a vacation and especially not $33,000. Boom, just saved $33,000!! But, I get what she's saying!

[@vickyrioslujan8277]

Say it in a nice way.

[@gfysyoutube]

You're right it's just math. WHEN YOU TRIPLE YOUR MONTHLY PAYMENT, YOU PAY LESS INTEREST. Not many people can do this. This is very misleading

[@willm.8840]

Don't mind me but I'm loving the pause...it's one of those ( things that makes u go...hmmmm....)

[@listen-learn-speak2465]

I tried to put my income in my line of credit and my monthly payment rate stayed the same, I thought it would drop. After seeing this I get the outcome, it’s less at the end. I didn’t understand at first.

[@Romenet310]

Your “payment” will always be the based on the terms of your personal line of credit. The amount interest you are incurring should continue to go down as you keep your balance down.

[@seeyaatthebema]

Thank you so much Christy! I recently contacted my car loan bank and was told that principle only payments were not possible. I decided to test that info and made a payment slightly less than my normal one. I went and looked a few days later and sure enough, it showed the payment with no interest. The person who told me this obviously either didn't know what she was talking about, or was just dishonest and trying to discourage me from doing it. After that, I did a $2,000 chunk and can't wait to see it. So excited!

[@ke_instrayer]

Enlightening! thank you for this review.

[@Tim.Hammer]

We can identify her mistake within the first few seconds of the video - she took out a loan to go to Hawaii.

[@Ann-ke7fu]

If you're throwing your whole check into the loc, why wouldn't you just throw everything extra at the loan? Is it that much of a difference?

[@FeedmeSeymore]

Exactly. Income is $4438. Expenses $1910. 4438-1910=$2528 is how much the payment is toward the balance on the line of credit. If you sent $2528 toward the lower interest loan (instead of $804) you would end up paying less interest on the loan compared to the line of credit because the interest rate is lower. No magic here. What am I missing?

[@icancan8019]

You lost me at she took out a loan to pay for a vacation when she lives with her mother….

[@GizmoGuy620]

I do the exact same thing, except I use a CC (no floating interest rate like a HELOC) tied to my checking acct. as an overdraft protection. My whole pay always goes 100% to pay down my CC.

[@wallstreetme]

you are essentially doing 2 things: (1) you are forcing your “savings” into paying down the balance (2) you are taking advantage of the nature of the HELOC vs the Amortizing loan.

[@moniquesmith325]

Thank you SO SO MUCH for this wisdom.... very much appreciated!! Helping us be good stewards of our blessings!!!! God bless you Mrs. Vann

[@VanntasticFinances]

God bless you back!! Thank you!

[@davidmcdaniels196]

Thank you so much for your videos. So simple to understand, after I watched your video on mortgages. Love what your doing.

[@kracksmith4ejm1]

so the only difference on the left from the loan is your just making minimum payments right, so what happens if you just add any extra monthly savings to the left like your doing it on the right, wouldn't the left side be the same to be able to pay off in 13 months too?

[@peace.n.blessings5579]

Thank you for uploading this video

[@sammarithinang_pannarith]

Sons of Baby Jesus! 😲 You just blew my brains with this one 🤯 I've never been blown so good before 😅 Mental skeet everywhere 🧠 Thank you so much for taking the time to explain this 🙏🏽🙏🏽

[@SteveReaves]

You're doing a good thing! You're trying to give people hope in what seems like hopeless situations. God bless!

[@quinnadamarczuk2525]

I love you !!! ❤ thank you so much for you sharing! Have a happy day!😊

[@VanntasticFinances]

@quinnadamarczuk2525 I LOVE YOUUUU! My pleasure! Thank the Lord…He is good. Have a great week!

[@bigal8976]

I follow the example. However, she is left with $2710 after expenses. If you had applied all this the the loan each month wouldn’t it be paid off much faster also?

[@Shining_Brightly]

Sure - however if she needs the money "left after expenses" that she put in the loan, there is no way to access it. Once it goes toward the loan, it's gone. But you are correct, she could put the left over money toward the loan and pay it off faster than the schedule the bank has set up.

[@VanntasticFinances]

@@Shining_Brightly Exactly!

[@VanntasticFinances]

@Shining_Brightly answered beautifully!

[@HighPriestessK]

You're right. I've been using a line of credit. So much easier and better. I even got my into. I showed her how it works. Many people are still sold on the loan aspect and don't understand.

[@DR4296]

But she's effectively paying the line of credit back with $2500 per month payments (income minus expenses)!! I wonder how much faster her loan would be paid off if she'd be paying it that much $$ per month (effectively $1700 per month in extra principal payments)...and how much interest she'd save.. in your model ?!

[@VanntasticFinances]

That's the problem with Dave Ramsey's method. MOST smart people are not going to put their last dime of cash flow into a LOAN and lose it forever. Using a line of credit gives you access to the cash flow in the event you NEED money.

[@rodentsofunusualsize]

@@VanntasticFinances In this example it sounds like she already has a LOC established. By paying off the loan she uses $33,000 of the LOC, which gradually gets paid down and more credit becomes available again. I assume this is essentially what you mean when saying using a LOC give you access to your cash flow. Or do you mean something else? However, if she keeps the loan she still has the LOC available if needed (e.g., for an emergency). In fact, she has more credit available with this approach since she didn't use any of it paying off the loan. So it still seems like just paying extra principle toward the loan results in less total interest being paid and provides the largest amount of credit remaining available if she needs money. That said, I agree that there can be additional savings by transferring small chunks from the loan to the LOC to take advantage of the average daily balance. However, this is a small benefit compared to the benefit of using the extra cash flow to pay off the balance faster. Also, the optimal size of the chunk is a bit more complicated to figure out because you are balancing the effect of the average daily balance to essentially lower the effective interest rate on an account with a higher interest rate. So if you transfer too large a chunk the higher rate wipes out the benefit of the daily averaging and can result in more total interest being paid.

[@seetar7934]

I was thinking the same thing..is she applied the same income to the loan..then she could pay it off the same time frame.

[@3lmach0crypto77]

wow! looking forward to learning more. ty

[@Stefan_Mileski]

@@VanntasticFinances In most countries, home loans have a redraw facility and you can also have an offset account. Do these features exist in the US?

[@vvalasek]

This lady is amazing

[@Mylittleponyplushies]

The problem is everyone in debt is paycheck to paycheck

[@VanntasticFinances]

Not everyone in GOOD debt is paycheck to paycheck....this example took bad debt and turned it into good debt... taking a loan certainly won't help the paycheck to paycheck issue...it would make it much, much worse.

[@GeeT-yt2eh]

@@VanntasticFinances 4400 dollars income with 1900 in expenses. Leaving 2500 a month to save. Would be better to advise her to save for 6 months and ditch the loan altogether. Taking a loan for a vacation is straight stupid.

[@GeeT-yt2eh]

@@VanntasticFinances if she wants to increase credit score, she can still take the loan out but she’d have the choice to pay it off right away or continue with the loan. That would be the much more intelligent way of going about this.

[@aprilrain2011]

Wow so glad I stumbled on your video's.. I will take the course. I cant believe this. TY.

[@askhenry]

Hello thank you for your videos. Very interested in the topic. I do have a couple questions for clarificaton. If I understand correctly the total income of 4438 is going into the line of creditand expenses are 1910. The difference is 2528. If the person in your example were to pay the 2528 towards principal monthly (in addition to her calculated monthly expenses) wouldnt they bring down their balance to $0 in just 12 months? If we add up the total principal payments in your example for 11 months (not including cents) = 4249. Then if they paid the extra monthly income after expenses 2528 x 11 months = 27808. If we add thos 2 figure its 32057. So in mo 12 they have a balance of 943. So they would pay off their balance in 12 months as opposed to 13 in the example. Am i missing something? (I do understand that with the line of credit, they'd continue to have access to the funds but other than that, what is the benefit?

[@TexasEmperor]

Well put, Henry!

[@nicl3296]

The line is better! I am teaching my kids this now.

[@ForUsNaturals]

I wish you had an app where I could put in my info. 😅

[@VanntasticFinances]

Me too!

[@erdemir38]

Hi Christy, thanks a lot for your time. I am sure you are the BEST on KZbin. We are learning a lot from you.

[@andreyemelyanenko5230]

Thank you for education ❤

[@src4409]

Here's some easier math: income- 4438 minus expenses- 1910= 2528/mo left over. Loan balance- 33,000 divided by 2528 is 13 months. All she has to do is not take out dumb loans and SAVE up for 13 months prior to her trip.

[@papitas2843]

May Yahweh abundantly bless you for the good works you are doing! Your willingness to share this knowledge is a huge blessing to our ignorant masses! Thank you!!!👊😊

[@VanntasticFinances]

I appreciate that

[@ccubsfan94]

The line of credit looks so much more appealing, but the kicker is with the pay-in-expense out method, youre leaving large extra payment. If applied to the loan as such, itd end up similar in interest paid as well. Its all about paying more and paying early

[@reginalemoine5809]

How would these numbers compare if she paid $2428 (income - expenses) per month on the loan? I realize she would lose that cash flow, but she has the LOC with a zero balance for emergencies. I'm just wondering how beneficial velocity banking is to someone with such a large amount of cash flow per month.

[@VanntasticFinances]

Exactly. She would lose her cash flow. I would rather have the cash flow into the LINE available for reuse at the same time...not to mention...the chunk from LINE stops ALL the interest from the loan. With your option, you would have interest on the loan, plus the line due to you have to pay your expenses.

[@reginalemoine5809]

@@VanntasticFinances Thank you. I’m just starting out with Velocity banking and will be using existing credit cards as my LOC. I do have student loan debt, so I’m looking at a PLOC farther down the road after I get my credit score up a bit more and after I pay down my primary card. Your videos are so helpful. I’ve been binge watching for about 5 days now. I wish I had $2400 in CF! 😄

[@Husky_910]

I'm not the brightest but from the example it looks like the lady has a little over 2k a month extra why not just pay that every month toward the loan and save the 18% of interest on the LOC?

[@VanntasticFinances]

Loses cash flow in loan

[@l-bird]

You're the best! Thank you for continuing to give us great mind opening knowledge

[@monicadennis8206]

I feel like I need a Vann Math class and just as I typed that you mention your Velocity Banking Basics! I will absolutely take a look at that. Thank you!

[@angiemarie1367]

What happens if you have any unexpected expenses come up? How do you pay your bills with a line of credit?

[@jamiea5255]

As you pay down the line of credit you are able to reaccess those funds. It's revolving similar to a credit card. You make a payment you can take that back out, make a payment take that back out etc.

[@marizavivc]

Lady you are a rock star! Thank you for sharing your knowledge 🤩

[@bobcatbilly8425]

Hi Christy, Quick question… In the line of credit scenario the borrower is paying right around $2000 a month, but in the loan scenario, she is only paying around $800 a month. What would the numbers look like if she paid the same amount in both scenarios? Thank you for helping people understand their finances! You have a new subscriber 😊👍

[@VanntasticFinances]

I’ll get time to run those numbers, but regardless, even if she were to save the same (which she won’t)…she still has her cash flow for urgent needs (car repairs, etc) using the line. Putting extra into the loan means losing access to funds if needed. Good question though! Thanks for watching!

[@jaydotseedot]

@@VanntasticFinances I’ll save you the easy math if she would do the same as you suggested she would save money with the lower interest rate. The real advice is don’t take a $33000 loan for a vacation because if she would just save her money and not spend it then the banks wouldn’t profit from stupidity. Financial freedom is not going into debt especially right now.

[@LostSoulSearching]

That is why I went with loans, bc I could not afford the higher payments for the line of credit...so I bit the bullet.

[@VanntasticFinances]

@@LostSoulSearching There isn’t a payment on LINE if you’re doing velocity so I’m not sure how a loan is better🤔

[@adairishernandez-cabrera3664]

This is about turning behavior into math. With a loan most people won't overpay 2k every month cuz they can't access those 2k extra if an emergency comes. You can do it with a line of credit. You can access any extra payments or any outstanding principal at any time. Which remove the fear of an emergency showing up and you not having funds to cover it. This is about using the LOC as a checking so your extra savings are apply towards the payment of the LOC without even having to think about it or plan a transfer. Which save you money instantly.

[@Jgom42]

If you make an extra $2,528 principal payment each month in addition to your regular monthly payment of $804.60: The total interest paid would be approximately $2,653.20. The loan would be paid off in about 11 months.

[@vickyrioslujan8277]

IF!

[@joseluisorozco9879]

Thanks for making these videos and sharing the knowledge. All makes sense and seems great. At the same time, how can people secure lines of credit if they are probably maxed out and the banks won't extend the LOC. Can you offer some advice on that? How can one secure a LOC as they are trying to get out of debt?

[@VanntasticFinances]

My credit card videos show how to work with maxed out credit cards🙂

[@hargersadventures]

You're awesome! Glad I found your videos. I have shared them with others in need.

[@VanntasticFinances]

Awesome, thank you!

[@juicy2fresh]

This is not true. The point blank is that an interest rate is the cost of money. If you have a higher interest rate, you have a higher cost! The example on the left showed the person making a $805 payment every month while the example on the right showed the person making a $2528 payment ever month. If you applied the same $2528 payment to the personal loan on the left, you would save $11,700 vs saving $4063 with the line of credit example.

[@chaldoone9656]

Did you even watch the whole video? Or listen?

[@VanntasticFinances]

@chaldoone… I was wondering same thing 🤔😂.. thanks for watching

[@TheATINurse]

Incorrect. If paying things down very fast, the debt goes down faster.

[@thefaceoffate]

OR, your scammed 'client' could just pay $2445 per month for 15 months (as close as i could go to the 14 months in your scam scenario that did not exceed the $2530 she has available after the $1910 in expenses) directly to the 16.12% loan, leaving her around $80 a month to save or go out to a nice dinner, and the TOTAL interest would be around $3700 - hundreds LESS than the $4k plus you are touting as a significant savings. She is already going to be putting all her cash into an account, so it SHOULD be to the lower interest bearing account. It's just math.

[@maicaster8985]

I thought I was the only one who realized this. I had to dig through the comments to find yours. Financial literacy is really lacking for a country that runs on debt. She's assuming the person only pays the minimum monthly payment with the loan. If they put all that's left over from income after expenses are paid (2527.64), they would pay off the loan in 15 months and interest paid would be 3527.12.

[@vickyrioslujan8277]

@@maicaster8985 You guys are missing the point - you cannot put money into your loan account and then pay your water, electricity, groceries, gas and whatever else you need to pay for if you already have paid your loan bill. With a line of credit, you can do just that. Now does that make sense? It does to a whole big bunch of us, maybe because we got caught up in the whirlwind of it.