Case Study Shows Pay Off $30K Car Loan Within 16 Months! Part 1

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[@uchihaitachi4629]

Make sure y’all are watching her ads !!!! Because she’s helping tremendously

[@VanntasticFinances]

😂 well, that was precious! Thank you for watching

[@yolandabrown9026]

Quick note: Beginning of Month 7 ...start with $300 plus the $10K new car balance...would equal $10,300, etc. Just a quick correction to calculations - but I get the concept and love it. Thank you for taking the time to explain everything - there is hope for anyone with Velocity Banking. Continued Blessings Ms. Vann!

[@vcp93]

Taking financial advice from someone who can't add or "minus" 🙄 seems like a questionable idea. 🤣

[@sidshri6080]

@@vcp93 atleast the lady is trying to help us for free minus your rhetoric. I dont have so much patience to help :(

[@rafytorres4599]

Thank you lol I thought I was going crazy understanding the 13,000 when is 10,300

[@timsatterfield9752]

@@rafytorres4599 my brain exploded at that point.

[@BrianZiegenfuss]

Easier and faster just to put the additional $1575 in cash flow to car payment. $600 + $1575 is $2175 a month going to car. $28000 divided by $2175 is 12.87 months. You can pay it off faster by just putting the it all to car payment. Not to mention, most car loans do not except credit cards so you would have to use a 3rd party servicer which would charge around 3%. You could get some benefit if card has cash back or points but I doubt it covers the 3% fee. There is also a mistake in beginning. If you pay the car with credit card at the correct time, the first billing statement on credit card would have no interest.

[@crankybastid2197]

That 1575 per month you put down on the car loan is all the cash you have. So, if you need cash to go to a movie, pick up relatives at the airport and have to pay for parking, lunch dates, money for kids school trips, and any other reasons to need cash would come out of? LOC / CC therefore the payment of that would take away from the 1575 you have to put down on the car. The interest on the LOC is different from ammortized interest.

[@jeffreyslater1656]

And by weekly payments reduce principal and time

[@redfo3009]

@@crankybastid2197that stuff should be included in the expenses calculation. But of course so many unexpected things come up

[@ABCD-si7px]

You are missing multiple points.

[@coilymo]

Thank you for taking your time to walk me through this. It makes so much sense to me

[@VanntasticFinances]

Glad it was helpful!

[@johndunston2394]

I just subscribed. Your videos are excellent 👍. Velocity banking works. Keep sharing and helping folks with the paradigm shift.

[@VanntasticFinances]

Thank you so much for your kind words and thank you for watching!

[@nancyblessing8411]

I have used a similar method to pay off debt. Am so glad to find out it has a name. I always felt guilty having to use the cedit card again. Now I learn that there is no place for that. Thank you Ma'am.

[@VanntasticFinances]

You’re welcome! And thank you for watching

[@ryanwilliams989]

It's recommended to save at least 15% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 15% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.

[@StellaMaris-lv2uq]

For me, I believe retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My wife and I both spent same number of years in the civil service, she invested through a wealth manager and myself through the 401k. We both still earning after our retirement.

[@hunter-bourke21]

It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $875k by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.

[@maggysterling33254]

@@hunter-bourke21bravo! I appreciate the implementation of ideas and strategies that result to unmeasurable progress, thus the search for a reputable advisor, mind sharing info of this person guiding you please?

[@hunter-bourke21]

The decision on when to pick an Adviser is a very personal one. I take guidance from *Gertrude Margaret Quinto* to meet my growth goals and avoid mistakes, she's well-qualified and her page can be easily found on the net.

[@BiancaSherly-qt6sb]

I am going to look her up, I have about $81k i want to start with, might be small but it's better than nothing though. Since the 08 crash is playing out again.

[@colinkakahi2324]

I only want to point out this matter. I do not mean any disrespect in any way. I respect you for dearly teaching this stuff . Bless you

[@dougbullis8462]

Don’t forget a few of the basic reasons for doing this (no particular order and I’m sure there are many other valid reasons): (1) building credit, (2) lowering interest on unpaid balances, (3) getting “Cash Back” on those types of credit cards, (4) satisfying the credit card monthly payment without actually making the “normal” payment (free up that amount in cash flow), (5) reserving cash flow within the line of increased credit (for emergencies). Otherwise, using cash leaves you with no cash flow, whereas paying down credit card balance keeps the cash flow that’s otherwise lost in a payment. Reserving cash flow while at the same time paying down debt and building credit is the key here. Smart instructor!

[@VanntasticFinances]

Exactly!

[@MichaelFrancisco973]

What are you both talking about? 1) Your build credit by paying bills on time, getting higher credit limits so debt to utilization rations are lower, multiple types of loans, age of credit, and inquires. So no this does not build credit and will actually lower your credit score as borrowing 10k on credit card will ruin your debt to utilization ratio 2) You are paying more interest with this method 150 dollars interest if you did nothing but pay normally for 6 months, $ 210.50 by her method with 2 missing months of interest as well. Better off just taking extra and paying to car loan directly which is also dumb as 3.5% interest is extremly low. 3 month CDs on fidelity are paying 5.3% so you would be making 2.8% if you invested extra in a CD. Better yet pay the home loan first as it's 6.25% so at least you save .95% 3) You don't get cash back on CC loans if she wanted cash back she would have to buy the car with the CC. 4) You decreased cash flow by tying up your available credit on CC, paying off a car loan doesn't give you access to more money as you don't build equity on a car loan. She could build equity on the home though if she paid that which does have a higher interest rate and makes sense to pay normally with extra cash not CC loan at 21%

[@jv8296]

@@MichaelFrancisco973 Preach it man. They could pay the car off in 14 months by just sending the cash flow in on the principal every month. This makes no sense.

[@Marcus-gi4jb]

@@MichaelFrancisco973 curious to see the replies to this

[@Locomaid]

It seems very complicated. And one emergency that needs cash and the castle crumbles

[@andys5203]

Awsome advise. 😊 thank you

[@Trever78]

Your video should definitely be featured in schools around America honestly

[@leeannhibbard2749]

I disagree. I don't want my child to EVER get a credit card. We have taught him that you live below your means and save. You cash flow a car. There is no need for a credit score.

[@melstrashbin]

yes in this system it would be the only way to get ahead

[@pmp2559]

The banks and institutions will not allow that

[@loft27ss]

@@leeannhibbard2749 Dave Ramsey teaches it

[@joecies]

Maybe she could build an online calculator that compares this method with just paying down debt with excess cash each month( or investing the excess cash somewhere else ).

[@cchamilton1985]

I made one for myself in Sheets, calculated actual daily averages and balances, figured interest cost and extrapolated cash flow over the life of the current debt and the VB Vehicle, the only way this saves you any money is if you have a teaser 0% Interest rate for long enough that you can get out from under the debt before they charge you, otherwise you still end up paying interest. I used my total debt (20k at the time) and by the time I made the final payment using both strategies the difference between the balances was less than five dollars. The only way I was able to get the model to output savings is by using a hypothetical balance transfer into a 0% interest account and you're basically cash flowing paying off your debt. That was the best way I could figure to test the theories and it was the most realistic I could possibly make it. It's actually pretty clear in her video if you ignore the words and just look at the white board. She says there is $1575 cash flow, she uses 6 months in the video, 1,575*6 is 9,450. Just put the $1,575 per month on the car for 6 months and you accomplish the same thing with less interest paid. Maybe I should make a KZbin video breaking it down.

[@Zombiekiller76]

I don’t know if anyone pointed this out , but there was an error in your math at month 5. It appears that you added month expenses, calculated interest then added month 5 expense without subtracting month 5 income. This becomes evident as your LOC balance increases from $962.90 to $1850.40. The balance should have been satisfied with the month 5 income.

[@kevinpaige4177]

Facts!

[@Paulk305]

I caught that as well. Simple mistake, we all make them. She would go back, watch it, and laugh at herself, I'm sure.

[@VanntasticFinances]

@@Paulk305 As I did..also proves velocity works even faster🤷🏻‍♀️

[@trinitybruns]

Yeah my OCD is KILLING ME now that we have made it to EXPMO2...

[@vonnie3922]

Thank You For Existing.

[@jpgarc967]

Love these videos, is there one showing how to pay off a car loan without a PLOC or HELOC?

[@TheBaron671]

Miss Christy, thanks for all you do. Please look at this Car amortization schedule. What is different between Velocity and this. Auto Loan Calculator Results Loan Amount: $28,000.00 Monthly Principal & Interest: $431.72 Monthly Extra Payment: $1,575.00 Total Monthly Payment: $2,006.72 Total # Of Payments: 15 Start Date: Jun, 2023 Payoff Date: Aug, 2024 Down Payment: $0.00 Trade In Value: $0.00 Sales Tax: $0.00 Other Fee: $0.00 Total Interest Paid: $627.94 Total of All Costs: $28,627.94

[@byhislove]

Thank you! Man, lucky client with only 1,000 in living expenses. wow

[@arule2share888]

Can we see an example without all of the income going to the credit card, because there are some expenses that you cannot put on a card, such as a mortgage?

[@Sugarxspicenails]

The only question I have is how you were able to put the car loan on a credit card! I thought it had to be debit or from a checking account?

[@transformwithvickie]

My credit card allows for cash advances. I assumed that was how she did it. Hopefully she is able to answer for sure.

[@EmilyAllan]

I think Vickie is right. The credit card is used as a cash advance. She doesn't include the fees associated with cash advances, which can be quite expensive.

[@abrgamer6867]

My cash advance are 3-4% , and end up being way less than the interest if I pay amortized interest payments

[@VanntasticFinances]

You could use convenience checks. If you have a PLOC .. you don’t have to worry. You can put any loan into a PLOC. Thank you for watching.

[@Sugarxspicenails]

@@transformwithvickie I do have cash advances available on my cc, but the interest is absolutely ridiculous. But in another one of her videos, unless it was this one, she talks about some checks you can get for pulling $ off your credit card I guess those are convenience checks and maybe I’ll try calling or going inside and asking about them and if they could send me some. Also thinking about doing a my chase loan on one of my 0% interest cards. Chase let’s you borrow $ against your available credit, and they don’t charge you like they do for a cash advance and it’s available immediately in your checking account so I think I’ll try those things and see about paying my car down with that $

[@frankthatank2324]

Good info, math is off a couple times but you get the point across

[@Nsmithq99]

It makes no sense to pay down the 3.5% car loan with a 21% line of credit. She should just make additional payments on the car loan, or better yet build up her emergency cash reserve so that she wouldn't need to draw on that expensive line of credit in an emergency.

[@w1975b]

She explains it, but the 21% interest doesn't get charged by the end of everything, so you're not actually paying that amount.

[@VanntasticFinances]

Good answer! Thank you

[@VanntasticFinances]

And lose all of the cash flow? No way!

[@jv8296]

@@VanntasticFinances how are you not losing the cash flow anyway? In your example, the entire $4000 gets paid to the line of credit every month so I guess the cash flow is gone right? If you just use the cash flow to pay extra on the car loan, then you have the whole line of credit to fall back on if necessary. Using your example, you have zero extra cash flow free and only a third of the LOC to rely on if something comes up. Not to mention, you actually pay the loan off a few months faster by just sending the cash flow in as an extra principal payment every month rather than transferring the debt first.

[@justbrowsing803]

I agree Norman. I think a better alternative would be to use her cash flow of $1575 as monthly principal payments to her car loan. This would allow her to pay the loan off quicker while retaining access to her $15,000 LOC for emergencies. Plus, she'd have the option to stop applying the excess payments to her car loan without penalty if she experiences an economic hardship. But if she uses her LOC to pay down her car loan, she has obligated herself to ANOTHER line of debt. Also, if she experiences a hardship, she would only default on one loan instead of two. Velocity banking does not appear to be the best option for this case study.

[@2119rocky]

Hi, thanks for sharing this information. Is there a Velocity bank sheet I can download somewhere. Thanks

[@denzelchandler557]

Remember people this is not your situation, this is only an example using real life numbers. She's only trying to help us grab the concept of velocity banking not be our financial advisor. If she error with her math dont be discouraged 🤫 we are all adults just correct it in silence and carry on. We not here to learn math but concepts to financial freedom that your own advisor will not teach you. Great Teaching!!

[@808pera6]

10,000+300 = 10300 NOT 13000 But you have a great idea and explain it fantastically

[@localone1597]

Shouldn't the car loan after the 6 months actually be lower than 18k? Wasn't that getting paid down as part of the expenses? Or did I miss something.

[@anthonyhayes3166]

The car payment only comes off the monthly expenses the times that the $4,000.00 is put in, otherwise it is part off the monthly expenses

[@anthonyhayes3166]

But yes it will be lower than the $18k because you made 6 payments during that time

[@kathsch8966]

@@anthonyhayes3166 You are correct. It goes down to 15,000.00

[@carolynwhitfield5100]

Was thinking the same thing. It should be decreasing as well, if it comes out of the monthly eexpenses

[@christinepenkala3690]

I was wondering about this as well. Thought maybe the car loan was on hold because she pain $10,000 on it, so it's like prepaid possibly?? Just a thought. I was curious so I came to the comments.

[@iman-klt]

I noticed that you used the balance on the car at month 7 of 18000... when you have been making payments on the car for 6 months prior... so that balance would be lower... but not by much ... still a positive :) Thank you for your teachings

[@wrksnfx]

Your month seven balance in the $10,000 you put on a car is wrong for the total, it should be at $10,300 not $13,000.

[@sheneathahollowell2750]

Didn’t the card have $300 not $3000? There is $300 on the board but when added the total added $3000

[@desmondhughes9143]

Thank you

[@josephmcquade4879]

This is very complex for someone just trying to pay down a car loan. Why involve high interest credit cards when you have Xtra cash coming in??

[@briancroston1684]

I can understand chunking a 30-year mortgage where the first 10 years is mostly interest, but I don't see any benefit for such a short loan. If you just apply that $1575/m cash flow directly to the auto loan, you're paying $2175/m towards it. Payoff is 14 months and you still have the full $15k LOC available for any emergencies.

[@rowland4117]

Instead, just apply the free cash flow to your auto balance and you would have already paid off $18,900 after 12 months not including your monthly principle and interest on the car loan. And, still have the line of credit for emergencies...It's like one is spinning the wheels in the mud with this example to cover the same distance as on dry land if you just used the monthly cash flow towards the auto balance. White board that!

[@interestingfacts4943]

Exactly! By directing her residual monthly income of $1575 to her car loan as a principal monthly payment, she will pay her auto loan faster and save on interest...not to mention, she would NOT obligate herself to make more than her minimum payment. Plus, she would retain $15,000 in cash flow via her LOC for emergencies. Velocity banking may work for people with little to residual monthly income, but it is not the best option for this case study.

[@bladesofarmour]

Do you have any suggestions on how to make a spreadsheet on a personal computer?

[@deena4967]

Can you please write bigger on the white board? Other than that, great job and thank you for doing this

[@simonbeaumont4132]

🤣🤣🤣

[@pkdenaissance]

Thank you for your video. I love the way you are patient and slow and clear with your instructions. Easy to follow along. I just found your video today and subscribed. I look forward to looking at some of the other videos you've made and learning more about VB. I do however have a question. When you made the first 10,000 payment on the car loan, being an amortized loan, didn't that 10,000 go to the interest of the car loan and not the principle. I know that car loan payments, the majority of the payment goes to the interest. Can you please explain this for me. Thank you. I look forward in exploring more of your channel.

[@VanntasticFinances]

When you make chunk payments you can apply directly to the principal. Thank you for watching.

[@pkdenaissance]

@@VanntasticFinances Is That true for all Loan Contracts? Or is that just true for Mortgages? Aren't car loans different?

[@VanntasticFinances]

@@pkdenaissance You can apply any payment directly to the principal on ANY amortized loan unless you're dealing with a ridiculous loan shark.

[@db3575]

I have a question, I haven't been able to find any personal lines of credit options. I have an over 800 credit score so qualifying isn't the issue. Every financial institution I've checked only offers business LOCs. Do you have recommendations? And doing this with a credit card, am I doing a cash advance to get the 10k?

[@Gropmag215]

When the next income check comes into your bank. Does it go directly to the LOC, or do you have to apply it to the LOC. If I have automatic debits coming out of my checking account for bills, it will pull from the LOC or would i need to make manual payments?

[@thehowtostudios1980]

Its crazy the ratio of home loan to car payment

[@sollymaykorn]

I love this video, but had a question. For mortgages and car payment (or certain payments) you can’t use your credit card to pay, so how would you go about paying that with your credit card?

[@BloodySoup74]

HELOC or PLOC

[@sidshri6080]

@@BloodySoup74 whats a PLOC please?

[@BloodySoup74]

@@sidshri6080 Personal line of credit.

[@Omar-Dawood]

@@sidshri6080personal line of credit ploc

[@JackofMasculinity]

@@sidshri6080look it up and quit being lazy they gave you the brick you have to build your own knowledge

[@anncamp4676]

Do you get a convenience check from your CC to pay towards your car? or do you put it in your own account first?

[@debbies6192]

In month 7, you added 3,000 but wrote 300 so it temporarily got a bit confusing. I viewed it again and now understand.

[@colinkakahi2324]

Hello, Is the monthly income before tax or after tax when you start to work out a budget?

[@hdstrong93]

After tax. You can’t put your money in before tax. So 4000 would be what this person takes home.

[@kathyking9928]

I will be teaching my 32 year old and my17 year old this!!

[@justbrowsing803]

Please do more research on velocity banking before recommending this technique. It can be beneficial for those who have little to no cash flow, but for many scenarios, including the case study presented, it is far from the best option. A better alternative would be to use her cash flow of $1575 as monthly principal payments to her car loan. This would allow her to retain access to her $15,000 LOC for emergencies...and, she'd have the option to stop applying the excess payments to her car loan without penalty if she experiences an economic hardship. But if she uses her LOC to pay down her car loan, she has obligated herself to ANOTHER line of debt. Velocity banking does not appear to be the best option for this case study. PS. you may want to research the debt snowball method.

[@jcmadstock]

This makes me want to go max my credit card at the bar

[@mrgalikanookis]

Where is part 2?!

[@DL-by8el]

Did the monthly expenses include a car payment, after the 10k. How on month 7 did the expenses go down from 2425 to 1825.?

[@pleskbruce]

If you just added the existing $1575 "cash flow" to the $600 car payment, you'd then be paying $2175 towards the balance every month. If we estimate the car loan interest on the full $10,000 over three months, that's $29.17 monthly or $57.51 in 3 months vs the $287 calculated here. All this is is just accelerating debt payment using all my excess "cash flow" and you can't "create" extra money to pay down debt by taking out another debt, especially one with a much higher interest rate. She needs to run this scenario from start to finish on a spreadsheet to see the true (entire) picture. You can't take 3.50% debt and convert that to 21% debt and claim to be able to pay the debt off sooner and save money. It's a mathematical certainty - with a given income, and principal and interest to be paid, increasing the interest will add to the overall cost.

[@christygomez7071]

Please get your own You Tube channel and post there, stop trying to hijack her method to help others

[@lisamarieutley9607]

You would still need go be paying your car payment the month after you made a $10k payment so your monthly expenses would jump back

[@carolynowens2788]

Was wondering, When you had put the 10,000 towards the car did you put it towards the principal? or just straight out 10,000

[@lisaeccles8036]

Question... how do you get a line of credit that big?

[@stanlystanly9964]

Please do someone explain to me the following question: how it really works. One takes $10k from LOC and put them into a mortgage lets say. That LOC is -$10000. One puts $4k and it becomes -6000+ the inferest and basically operates with those $4k. The balance is going to zero with the amount of the cash flow...i just dont get it how it works fast.

[@chadjordan9683]

How would you use a credit card to make a car payment? Cash Advance? If so the borrowed money is going to be at a higher interest rate.

[@VanntasticFinances]

Then don’t do it. You have to be strategic. Find a LOC without any fees.

[@seangarnham7834]

@@VanntasticFinances Can you elaborate on that comment please? What else constitutes an LOC?

[@dec1slh]

​​@@seangarnham7834 heloc or ploc

[@amyroberts7990]

Hi, I just stumbled upon your channel and saw this video and was introduced to velocity financing. I tried to "do the math" with my own finance and I was just amazed. So I went through all of my accounts to see how I can start implementing this plan. However, my car company doesn't allow any payments via Credit Card. That was disappointing. But I think I can still make this work somehow. Thank you.

[@MrFuture2084]

I’ve been watching these and thinking about doing this also. Now I don’t know much about a home equity loan or personal loans and the rules but I would assume that you could simply add up your expenses that don’t allow credit card use, transfer the money from the heloc or ploc needed for those expenses into a checking and pay them that way. I know it complicates things a bit but it’s worth the extra hassle if you’re eliminating debt this quickly.

[@amyroberts7990]

@@MrFuture2084 I agree! thank you for your reply. I'm trying to work out the numbers this month and will implement Ms. Vann's strategy as quickly as I can.

[@VanntasticFinances]

Welcome aboard!

[@ABCD-si7px]

You can pay with the HELOC.

[@mrpush2532]

This velocity stuff is nothing more than throwing your cash flow towards your loan priciple every month! No magic here folks! The only difference is you can access the LoC if you need cash. So just get a credit card for emergencies? I don't understand.this velocity hype!?! Its silly.

[@dezrvnone2483]

This won’t work for me because my loc and my car loan are both with capital 1, they won’t let you pay a car loan with one of their credit cards.😢. Do some math when you have a situation like that. How would that work?

[@6axlepwr]

My understanding is while you are paying down the $10,000 credit card loan. You are still paying the $600 per month on the car. This would reduce the $18,000 balance for the second $10,000 infusion. Very cool.

[@AndreaUrban-me]

Question about the car loan. Since you can only make partial chunk payments on the loan, is the regular car payment with the remaining balance also still included in the monthly expenses?

[@MsALCrespo]

Actually what I am confused about. The car loan bill will still be due so now you have an additional bill monthly, right?

[@AmandaGatesHome]

@@MsALCrespo that’s what I was thinking. Initial payment satisfies month 1 but in month 2 you have to make the normal car payment right? So how does this pay it off sooner?

[@lavartye7814]

I don’t understand how you’re using $4k to pay when you only can use the cash flow amount of $1575.

[@jenniferfehnel3233]

Question: How would I pay off line of credit from bank?

[@ChubbyUnicorn]

🤯 I need to get a line of credit.

[@morrisdavis9231]

My auto drafts, are you saying change them to the credit card. Will Social security that is paid to my checking account will they allow that payment to go to a credit card

[@captainsaveaho253]

Just apply the $1575 excess cash flow to the auto loan each month if you want to pay it off early. Better yet, at a 3.5% interest rate, you’re better off putting that excess cash into a high yield savings account right now that is earning over 4%. She gives terrible advice.

[@dair1972]

good strategy for those who have no cash flow but for someone with $1500 cash flow the same thing could be accomplished just using it to pay on car. i figure 1 month longer for this result and lot less complicated!!!!

[@sherrybandy322]

I believe you forgot to take the $600 car payment out of the expenses further down.

[@Tina-tz2ud]

If someone is paid bi weekly. Wouldn’t that make a difference as far as the interest on the LOC? Because you are making deposits into your LOC bi weekly instead of monthly?

[@sleepy580]

How many months were on that original car loan? How long would it have taken to pay it off the regular way vs how long did it get paid off in this example?

[@VanntasticFinances]

It was originally 72 months. Thank you for watching.

[@briancroston1684]

using a loan calculator, the original loan amount was $45,000. If you would have paid the loan payment ($600) + free cash flow ($1575) each month, you would have paid it off in 22 months.

[@blakewilson3062]

I’m soo lost, this video makes absolutely no sense to me

[@DanielCurrier]

Research this topic and then come back and rewatch

[@Ingrid_Abrams]

Because the video skips from point 18:18 - 18:34 when she is figuring the interest , then the video cuts to when she has already added that in, and starts adding and subtracting the monthly expenses again. The 4,000 says P/R and was no explanation of what that was. The $119 is the interest on the card. She took the high balance and low balance, divided by 2, then times the interest rate, and then divided that total by 365 days, and the interest was $3.97 day, then she times $3.97 x 30 days for the monthly interest onnthe card, and came up with $119 and added that. Then she put the $4,000 income as a payment back onto the debt and continued on from there. It would also help if she put parenthesis around what are the debt numbers and plus signs as what are credit numbers so it won't be confusing.

[@dominickwynn2435]

That’s because you would pay the car off in a little less that 13 1/2 months if you just added that 1575 extra cash to your car payment every month with out all the extra bs.

[@dennisp4395]

Blake, it was hard for me and This, math, is my fortier! It was b 😀cause of initial editing. Skip month 1 and 2. Pick it up on month 3. Thhe process is the sam for any given month. So even the numbers don't matter. Just focus in on the process. Example. Debt created on cc. Income source going on cc and Not into checking acct. Subtract income from cc debt. Add the ttl monthly expenses to cc again. Now here is where she simply gives a template for figuring in avg daily balance. Now if its too confusing, just add in the previous month interest. So total monthly exp's plus interest(prev statement's) plus cc debt is the total cc debt. It just keeps getting smaller because your chunking it down by depositing monthly income into your cc instead of a bank. It's genius! Reread saaaaallllloooowwwly the above. Use a pencil and pad. And start number(i recommend 10,000) to start. Use Your monthly income and total monthly debt to see how it works. Happy calcullating. 👍😄 Wait!... Uh, I spoke too soon. It occurred to me that what she is saying as far as procedure, step by step, may not be entirely complete. Why? Good question. As far as I know, many years gone by, a mortgage co will Not accept CC payment. Too many variables(loose legal ends). I don't know about the last 5 or 6 years. Much has change. Look into it. May even need a 3rd party for it. Too many ????

[@isaacrayc]

It makes no sense because you’re basically paying banks to make payments. Unless you like paying for the Chase skyscrapers, this is a bad idea

[@sliv5sliv]

So, I have two questions about this. Why wouldn't you just use the 1525 per month cash flow to pay towards the car loan every month? Why do you need to use the line of credit every month and pay interest on all of your expenses instead of just the loan itself. And also, if you were to follow the logic in here at the end of the cycle of paying off the 10K and then putting another 10k on the Credit line towards the car loan. The overall car loan amount would be less than $8000 because you've been paying for the last X amount of months toward the loan using the credit card. I also don't know many car loan companies that let their customers use credit cards to make payments. The numbers work but it just seems like an awful lot of reworking your budget and timing everything to start putting ALL of your bills on this every month. Also, your paying 3.5% interest on remaining car loan with money thats also being charged 21% interest. I might be wrong here but thats how I see it.

[@shannonsmiley6436]

Why would anyone willingly use up every dime they have in the bank for that when they have a $15k line of credit to pay it down? Line of credit is easier to pay over time than your car....if your late on the car it gets repo'd. Rather deal with a credit card. Plus if you pay it only using what you have left in your pocket it will take A LOT longer to pay off versus doing it this way.

[@edwardfrench1690]

@@shannonsmiley6436 ❤

[@tinabreon794]

Brings down the cost of the car and interest on the car. Very complicated. I bought my car through credit Union save over $1,000.

[@sliv5sliv]

@@shannonsmiley6436 but you are paying 30%interest on every bit of money you make vs what you bought the car for. Your nuts.

[@VanntasticFinances]

You lose your cash flow when you put into loan. A LINE allows you access to your cash when needed. Thanks for watching

[@Iwillbegone]

Why not add $1000 every month to the car expense, and that way we don’t pay $600 monthly for the car payment ? It seems to me we could have saved $600 more per month by tweaking something.

[@kimsvlog8765]

How do you do it w/ a 2k/mo budget?

[@_HC36]

How do you deal with the credit utilization?

[@atlasfueloilinc.2421]

Am I right that the 4000.00 deposit is done weekly from the persons pay check, not in 1 deposit, beginning of month

[@stephenfoster9009]

I missed something. If you pay your paycheck for the LOC, where does the money come to pay expenses ?

[@VanntasticFinances]

The LOC!😁

[@user-nu4py2mu6o]

Six months of strictly putting a minimum of $1,575 extra ($4k - $2,425) toward a car payment would yield zero interest expenses from a credit card loan and remove $9,450 off the vehicle’s loan principle. The first month’s interest payment alone is $172. Even if all six interest payments was $80 (average), that would come out to $12 a month extra in your pocket than you would have if you just placed ever extra penny toward the principle. The second month’s interest payment is $135. The third month’s interest payment is $109. The fourth month’s interest payment is $84. The fifth month’s interest payment is $58. You’re paying $556 in interest payments by the fifth month. You have lost $6 by the fifth month plus whatever the total ingest payment is on the sixth month.

[@lolabear3862]

But when were the monthly expenses paid?

[@tomburns890]

And, should I apply it to the largest payment loan or the longest term loan or just always start with the highest percentage rate loan (which makes more sense). Thanks again for your help

[@tonyl9821]

Start with the smallest debt...pay it off...then the next smallest...You'll roll the prior payments into the next debt and finally snowball the largest debt. and done. :)

[@Painintheknee]

Guys! The line of credit is simple. Not complicated like a home loan or car loan. You get freed up from your debts faster, 6 months to a year rather than 60months for a car loan. So in a year you can buy another car if you want.? Or anything else. Plus she is saving you way more money.

[@JS-jv6rg]

She's like my math teacher would always put me to sleep. All I understood was put all your cash flow into a credit card that you will be using for all your expenses, and it will reduce dramatically...em I missing something, not sure.

[@ericsmith2465]

Yes, you are missing something. Pay closer attn.

[@robbievalen4364]

😂😂🤣🤣😁😁😂😂🤣🤣

[@coreyczech]

If she was paying $600/m and had $1575/m cash flow like is stated in video, she would pay off $34000 in 16 months. This would more than pay off $28000 car loan even with interest @3.5% factored. Velocity banking works only in certain situations and this lady doesn't seem to understand the difference. She leaves out variables and comparisons when it comes to the math.

[@russellash8755]

And for some reason she keeps on confusing the entire youtube community with her misleading videos

[@TravisDickson-jf5vb]

All of that $600 per month isn’t principal only. You gotta look at the amortization schedule. By chunking $10,000 to the car changes the amortization schedule and makes her $600 a month payment go towards more principal and less interest. Changes the whole schedule

[@tonyt8807]

I think this way-- If the car loan was 0% interest rate, would you use your 22%LOC to satisfy it? No way. At what rate would you draw the line?

[@RaRi335]

Would the new car balance at 8000 be lower since you still paid the car note during the first 6 months ?

[@dhspam]

The banks are not going to let you stop car payments even when you reduce the balance for a LOC transfer. So, how do monthly car loan repayments factor into this?

[@davidmaruska1641]

Where did the extra 1K come from. 4k-1k-2425= 575. You have $1575. Did I miss something?

[@loft27ss]

How can you pay off your mortgage from credit card? It is not what banks allow

[@swamybale8213]

if you take 10 months to pay off two 10000 LOC using velocity banking, you are ahead of 3 months than simply paying 1575 towards principle for car loan. 1575 times 10 = 15750, vs 20000. Please let me know if this is right. Also I think the person should have 6 months of monthly expenses stored somewhere, if emergency arise.

[@ralphbowes1446]

Month 7 there was a mistake. $300 + $10,000 = $10,300 not $13,000. Also you're not putting any money on the car loan every month which means your expenses would be $600 a month less or you need to also reduce your car balance by $600 a month with exception of the first month where you put the $10,000 down.

[@shiraz1971]

You’re not calculating the crushing additional monthly payment on the credit card @21% interest lol

[@Rivas789]

Every time you deposit your paycheck, your satisfying that monthly payment.

[@Rivas789]

If you pay closer attention, she’s adding the 21% interest every month. You have to watch the videos a few times with different scenarios and you’ll have a better understanding of how this method works

[@aironwhite6533]

@@Rivas789 its not every month. the 21% interest is yearly then divided by the total days in the year getting your daily interest rate that you times by your loan balance.

[@MrTexaninNC]

How is she figuring out that you can pay a home mortgage with a credit card?

[@user-nq1tn6zr2t]

Is a savings secured line of credit better than a bank line of credit?

[@rigidbeast6447]

what about free cash 1575 + 600 loan payment = 2175 x 6 = 13,050. loan amt 28000 - 13050 = 14,950 new bal after 6 months - 13050 = 1900 new bal after 12 months done in 13 months with final payment. did I miss something here ? 3.5 % on the loan maybe adds a little more on the balance.

[@mags6468]

I have a question..if I can pay my rent with my credit card and I have already done it with a convenience fee of 25.26 each time should I still pay my rent using my credit card while paying it down using the volatility method?

[@amyroberts7990]

Anyone have any ideas on where to get a PLOC? I just checked with my bank and it only offers HELOC. I have a mobile home and HELOC's not an option for me. Thank you.

[@ASmith-jn7kf]

Hi Vann, I'm confused. If I am using the credit card to pay off exactly what I would pay off without it, what is the benefit of using a line of credit??

[@vonnie3922]

Raise Credit score?

[@nancy27c]

When you started new $10,000 in mo. 7 you added a carryover of 3 thousand instead of 3 hundred, which was written on top of the line. $2,700 too much?

[@oksanatarasiuk5637]

Is 3.25% her annual rate for 28K loan? If it’s down to 18k then indeed it’s about 600$, but again per year? Why it should be added to monthly payments?

[@interestingfacts4943]

Cash is King. Not sure why an expensive detour was taken when a straight route was available, faster and cheaper. Just take the monthly cash flow of $1575 and apply it directly to the principal. You would pay the car off faster, with less interest AND not obligate yourself to a THIRD debt! Plus, you would retain your ENTIRE $15,000 LOC to use for emergencies. Why use credit at a HIGHER interest rate to pay another creditor at a lower interest rate when you have the cash flow to pay cash??? Remember, you still have access to your LOC for emergencies... Using velocity banking in this case study is like a person living in New York and traveling to Nebraska to get to New Jersey...only makes sense if its the only route

[@justbrowsing803]

Agreed!!! Velocity banking seems to work better for people with little to no cashflow, and who have or can get a LOC. It doesn't seem to be the best option for this person.

[@scottmishoe3490]

If you don’t change your way of living, the debt is doomed to repeat itself. No matter how you demonstrate it. Just a high graduate knowing from experience. Have a nice day.

[@coreyrichards4303]

so wouldnt the initial 10k on the cc drop your credit score?

[@almmason7]

Of course, but as u make payments it goes right back up, not fast, but the goal here is to pay off your debt, not high credit score. You can still maintain a decent score tho.

[@CharlesTriesToRetire]

This is how I do everything. I use a very high interest rate loan to pay off a low interest rate loan, instead of just making extra payments. It's super smart. There is no way it can go wrong. I also advocate for using scratch off lottery tickets to fund your retirement. Heres the deal. Lets say I take the $10000 loc and put it down on the car. I still owe 18k on the car. I still have to pay the car payment and pay all my other monthly expenses. If I deposit my $4k paycheck on the 1st of the next month and the LOC decreases to 6k, what do I pay the car payment and bills with. That money goes to reducing the LOC. You don't still have it to spend. If you withdraw money from that account where is it coming from? Does the LOC go back up? Where do you show the interest payments on the LOC, did I miss that part? How does the bank make any money from this loan? I could be wrong. I'm a broke ass cave man. However, even if this technique did work (I don't think it does) you would still be better off just making extra payments, because if something goes wrong like job loss, pay cut, health issue, etc you can stop making the extra payment and use it for living expenses. If you have a second loan you are completely hosed.

[@ramonsolis3967]

Would it be less then 18k for car loan cause you still need to make 6mths of car payment right? Also question when you say use credit card do you mean getting a cash advance of CC cause I don’t think you can make car loan payments with credit car of mortgage payments I want to start doing it cause it looks awesome