Gosh I wish I could have stumbled on your video a year ago… shoot months ago. Would have saved me some pain. But when the student is ready the teacher shows up. So I’m excited about the journey!
Hello young lady. Glad to see you are still letting people know about velocity banking. It does work. Some people just don't like change. They have never used it but they will say it's a scam. Using your own money to do business is a scam. Why not use the bank's money to help your own money grow? Simple as that.
It is a relief for sure. Im glad she enlightened us. When we started we would leave $200 in the bank now we have $25 in the bank. We are just trying to figure out how to pay personal loans off when cash advance (cash into checking) was disabled. But we are living comfortably
I agree. It helps to let others know to get out paper and pencil and do the math a few times until It sinks in. Watch many videos. Eventually it works, and if they want to try something else do the math and se what works best. This shard to beat. Of course every situation is different.
This woman is leading people to higher interest rates with no calculation for inflation. She also increases the risk if people lose their job that they will be in a much deeper debt situation with high interest rates. People are far better off putting extra money in a high interest savings account and building up cash than being slaves to the bank. Everything this woman does is wrong.
OMG finding your videos has changed my life! I'm still learning but started velocity banking TODAY! I did my research, ran the numbers and recalculated my budget. I'm so excited! Thank you for all this information you are putting out there for everyone 🙏
@Madkilljoy I have an Upgrade Card with a 22k line of credit. I paid off all my revolving debt, which brought my balance owed up to 21k. I went from $37 cash flow to $400 cash flow and my Upgrade balance is at $18,200 😊 It's working! I can breathe again! I'm still learning how to make adjustments as needed because I have a couple of bills I can't pay with my card. Christmas this year has been a breeze compared to before and even took my kids on a family vacation to the mountains 😊
I’ve taken your advice for about a month now-you encouraged me to give it a go after I sent you an email with my concerns. Already I have paid off 1 card and the other is more than half paid off. That means I have lots of cash flow, and my credit score went up 50 points, which will bring more offers!! Thank you so much for all you do!
I was surprised how many places let me pay with credit cards. One thing, with utilities some would allow me if I was not on the budget plan so I discontinued it and paid with credit card. Try and see if that helps you? The lady I spoke with said no you can't, but when I tried it went perfectly well now for 2 months. @@smahleville
You right, we do have to change our mindset. STOP using credit cards. If you don’t have the money for it don’t buy it. STOP thinking that you house is your best investment. Like you said in 1 of your videos, take out your mortgage for 500,000 over the life of the loan you’d pay 1.5 million. That’s without any maintenance done over the years. STOP leasing cars. Buy used and pay cash. Invest in yourself people. Learn how money works, follow the money. Sit down look at your finances and see where it’s going. Look at your family cell phone bill and cable internet bill. Those bills are big these days. Then add car and insurance for it. Then say to yourself I have this car to go to work to pay for this car. Stop keeping up with the Jones’s. Rant done.
I’ve actually only used velocity banking for just under a month and my FICO Score has gone up 54 points! Never have I ever seen such improvement in my score. Thank you so much Christy! You are a God sent ❤
This method only works if your are disciplined enough to stick to a budget monthly and not go beyond your normal budgeted expenses. For those that are already in debt due to poor spending choices this method can lead you further into the hole
You are right. but that doesn't mean we can't change and start making better choices. Possibly find another person you trust to help you go over your income, expenses, debt & cash flow each week or month. Work towards positive solutions and grow...
We landed our month with a balance of $500 so we realized that cash flow is what people typically put into savings and leave alone but really cash flow is the allowance per month for debts. That's why cash flow is king
Thank you for all your videos, I truly believe the Lord brought your videos to my channel. They popped up so randomly. I’ve told many people about your method so far and we are almost 2 months in to doing your method. Thank you so much!!
It's sad that people are so brainwashed to stay in debt that when someone presents a solution to get out of the debt they think it's a scheme. Fear is the real issue. Especially for people in such a bad position that it can't hurt to try but they would rather not make a move. God bless their minds and bring them peace so they can make the right moves.
How to expose yourself to bad luck 101!! She has to be paid by Banks. That's a scary way of expose yourself to human nature and flaws. She doing the Casino house thing. Keep the client betting........the house)banks) will finish by winning.
I make extra payments in order to pay down my car and student loans faster but I make sure I have cash flow FIRST and pay everything I can on my charge or credit card.
I should be down to zero CC debt in about 5 mths just by using this method but you have to stay discipline, patience and live with in your means is the key. Once I'm at zero will ask for a line of credit to attack my home loan. Remember you still have to pay some interest.
I made the big mistake of refinancing my first home loan. It felt like a “win” and now know that is one HUGE scam by the banks out there. When I sold my house I basically lost out on over 10k because of that refinance. More videos are needed on the dangers of refinancing
@@TooFly357 I don't think that's what he means, but then he would have known the fees were there and been able to make an educated decision, still not the bank's fault.
Hello Van! I’ve watched a lot of your videos and I’m a bit confused. If I use my income to pay towards one credit card and add my expenses as well; how do I pay my other credit card payments? That’s what I’m confused about. Everything else I understand but not how my other credit cards get paid. Could you clarify for me please?
You would only use income towards one credit card leaving out expenses or bills that cannot be paid with a credit card. Leave that amount in your usual bill paying account.
I'm so glad I found your channel. I have 3 credit cards with a balance of around 4k. I took $1000 out of savings (only gaining .01 a month in interest) and paid off 2 cards ($400 and $1000) by adding 400 from my cash flow. The last card has $2400 balance and I will be applying my cash flow to pay it off in a couple of months. Question: what is your opinion on using a rewards credit card to pay monthly bills using your methods? Money in a savings account earns 1%, however I get as much as 5% rewards on my CC. Thanks for your videos.
@@AscDrew I did just that last month. I took a trip, charged about $850 on my card. Received $24 in rewards points, paid the card off and paid no interest for the month. Amazing results when you know how the system works. By the way, that $850 would not even gained me one cent of interest in my checking account. Thank you for the insight your channel provides.
@@AmmoDude If you spent $850 (that you were going to spend anyways) and you got $24 cash back 1) that's free money, but it can also be considered an investment: that's also a 34% Annualized Return on the $850 (24/850 = .0282 * 12 = .339 = 33.9%; or 1 month 2.82% return). Great job (as long as you ensure to pay off each month and therefore NOT incur any interest charge that would quickly wipe out the reward amount!
@@AscDrew96Yep, the key is paying it off before the bank applies the interest. I have another card that sends me "balance transfer" checks every year with an interest rate of 4.5%. Comes in handy to combat 21% interest rate cards.
Yes it pretty clear: Corporations do it. In there way they got QE money ( free in many ways) they took that and paid large of the debt. Then used the capital on the cash line again but if it is rotating interests rates no. Try to consolidate the money one card. Here main theme is to stop paying the bank interest reduce that use the card as leverage, increase the cash line, it is not investment though it using money wisely
How does interest rate affect Velocity Banking for paying off/down mortgages? My HELOC is variable and now variable at 9%. My mortgages are at 2.75%-5.00%.
Unless you are disciplined in your spending these using more debt systems can go very bad very quickly. If you have a $10k balance on a credit card you have a spending problem. The math works but it doesn’t fix the spending problem. Credit cards to spending addicts is like whiskey to an alcohol addict.
I'm so glad I came across your videos. I appreciate them and I'm learning a lot. I've tried to do this a few times over the years, though I had no idea it had a name and was a thing. I just wanted to use my credit card for my expenses and pay it off with my paycheck in order to build credit and get the card rewards. I was never disciplined enough to do it right. I racked up the debt and couldn't pay it off. Your videos are super helpful and easy to understand. I like how you break everything down and explain it so well. One thing I'd suggest is to get a better audio set up. You're so smart and have enough money to get a microphone and make some high quality videos. Your videos are so quiet I have to run them on full blast to still barely hear you. Then when an ad comes on or the next video plays, it just about busts my ear drums and speakers being so loud (or a normal volume if your speakers aren't on full volume). I'm not trying to be rude as I truly appreciate what you do. Just trying to make a helpful suggestion. I couldn't make a quality TH-cam video to save my life, but I know you can! Keep them coming and thanks again!
Your cash flow is income - debt. No you typically cant use credit card to pay rent/mortgage or car payment. But you can orepay car inshurance in full with credit card if you have availability, which increases your cash flow. Depending on how you get paid weekly / biweekly / monthly. Example weekly divide your rent and car by 4 set that aside untill they are due. The rest of your money park it in your credit card.
I love that I have options to pay off my debts faster, and your videos are helping me to reach my goal of being debt free even quicker. But, I have to disagree on this part, especially with Capital One at the 6:00 mark. I have TWO Capital One cards, one is Platinum. It takes an average of three (3) days for my payments to post, and those funds that I have just paid in are not available until after they've been posted.
Should the loan to be paid off lower interest rate than heloc? I ask the bank, heloc interest calculated compounded daily. Mortgage is calculated monthly.
I'm trying so hard to figure out the benefits of this. Whether you pay debts out of pocket or through a LOC, the money is still "gone". Right? Except there is no interest on the out of pocket option. Please explain!
There is little benefit and a whole lot of risk. Imagine losing income and you still have this 20% rate loc. dangerous as it gets. This is how people get trapped and buried in debt right here
The only problem, is there are certain loan companies (cough) UpStart and UpGrade (cough) that don't accept CC payments. You would have to be more creative in paying those off using velocity.
You could use zero interest CC ask for convince checks and be sure that when making out those checks it's not going to be charged as a cash advance... I've learned this from another YTber and have yet to implement it
I’ve been following your tutorials, and am loving your advice! I also have to say that I absolutely LOVE ❤️ your beautiful shirt! I love lions tigers, and stripes! Please can you tell me where you bought it? Thankyou! 💕
Thanks Christy for another great video! Could you tell me the formula to figure out the interest and time to pay off a car loan if I transfer the total remaining to an loa? And how do I figure out the remaining interest that I will pay on the loan if I stay with the dealer loan? Are there standard LOC interest and standard amortized interest calculators that I can compare effectively and accurately?
Problem with this in my country is that most places charge a fee to use credit cards (I think it’s like 2.5% of the purchase price), also you cant take cash out on a credit card without getting a cash advance interest rate (22.95%).
@@YouAREyoubeYou I don’t think so, haven’t heard of it but we do have something similar to HELOC, so I’ve starting putting my monthly pay in there and then transferring the money out to my account attached to my Debit card when I need the money or when I need to pay a bill.
I like your approach, but in the UK we can't pay many bills with credit card. For example, cant pay carinsurance with it, no mortgage payments, no loan payments, no water bill. Will use velocity approach partly though and can pay that way for shopping, petrol etc as line of credit with part of my income.
So the only way this can work is with a line of credit. I can see how using the banks money really works. I have a question though, can this work for Canadians?
For example: if I have a Heloc and the monthly payment is 350.00, I put my income of $2500 onto the Heloc, my payment for the month is satisfied. But what If my expenses are $2500? Seems I would be short $350.00 for that month? If this is not correct please explain. Thank you
So what can I do when I have a personal loan and a credit card balance but do not qualify for a credit line. Monthly payment for my loan is the highest. Focus on paying off loan, or Credit cards first?
Paycheck park on CC because it's revolving. If possible Line of credit from your bank is optimal because the interest is typically lower. If you only have access to your throw all your money into that even automate your utilities and subscriptions food gas and evey paycheck since it's a credit card I would set aside money for mortgage/rent car payment (cannot pay with credit card) when rent or car is due set aside money for that otherwise paycheck park in the credit card. I also pay car inshurance in full to open up more cash flow. First thing before tacking debt is open up more cash flow anywhere you can. Finding cheaper phone plan if you don't use all the data from the big phone companies you can pay per gig. I've saved money that way because we typically have access to wifi at home. Shop around for electricity, lock in 3 years when you find the best rate because electric like gas goes up every year. Get rid of unnecessary subscriptions. They REALLY do add up. I only have prime they have a decent library and If available I use slow shipping and get digital credits and then once in a while use that to pay for new releases for free. You can't do that with Netflix.
Ok how do I use my 1000$ house payment on my credit card? Mortgage company will not take Card for payment! Many call this a cash advance and charge premium interest rates for cash advances?
I suggest getting a personal line of credit from your bank to use the velocity method to pay off your house which is what I'm doing. Then when you build enough equity get a HELOC
@@debrachapman8581 , by using my best Credit card as my line of credit, my cash in and out as cash flow satisfies my monthly payment and reduces total outstanding until I need the cash to pay a bill in the future ( like an $800 auto insurance payment due next month) I also get 3+% credits for many expenditures. If I open another LOC account then I will still owe big minimum and interest charges on my outstanding credit card account, whose rate will far exceed the LOC against the house! ☹️
@@debrachapman8581with record numbers of people in credit debt, the last thing most people need is another loan. Nobody is factoring risk into any of these equations.
About to try this, but if I may ask but isn’t the only cash flow the credit card payment? I also see in my case I can’t do car, rent and not sure on car insurance yet any suggestions on this? Bad credit here!
Hi I've been watching your videos, I have a question about how to transfer a loan balance to my credit card when the loan doesn't expect credit card payments?
Basically the same thing. Both are revolving lines of credit and use an average daily interest LOC comes from a bank/credit union/ HELOC ( not a loan!) Credit cards are issued by discover / chase/ BOA / American Express etc. Some banks will do credit card as well. The main thing to focus on is to NOT take a loan, but instead use a LOC or credit card
You cannot pay a loan or mortgage with a credit. I have to use my checking account and give him my bank information for them to take money out of my checking account pay my love. The same thing with my store credit card those I write a check..
Good morning! I'm glad you made this video. You answered the questions I asked yesterday. Now, would you still recommend people to have a separate emergency fund? Also, worst case scenario, what if the credit card company close the account after my income goes through?
Hello! It is a real concern that limits will be cut if you have been allowing the balance to stay at the limit or if you have been past due. You could call them before making chunk. They should be able to tell you. You can also “mini-chunk” to see what happens with limits as you make deposits. Good luck with that. If you don’t have other cards or LOCs with available credit, then it wouldn’t hurt to keep some available cash so that you’re not stuck completely without. Thanks for watching!
You can think of it this way.. You can do both, chunk & save just in case. The banks are a mess right now and will be for a while probably. Protect yourself but if we don't take risks we don't get any benefits either. I am still moving forward. n Pay yourself first each month, repay yourself. think of its a Laon to yourself and leverage it time and time again.
Nicely done! Yes we are a fiat currency society - I actually had to go to the bank to get some emergency cash today as I haven't used a real dollar in a few years. Most transactions to date are using plastic, phone or your signature.. who'd have thunk we be like this to date.
Using credit as a "same as cash" tool scares me. It's too easy to overspend. I'm debt free, so although I do carry JUST ONE credit card, it is for an emergency ONLY. I also impose a $100 limit on its use UNLESS I am purchasing something online, in which case, right after I make my purchase, I IMMEDIATELY use my bank's bill-pay feature and pay off the charge IN FULL. Also, as a general rule of thumb, if I want to purchase something, I do so ONLY if I have the CASH on me (although, if I'm buying cattle or in the market for a deal on a tractor or bailer (hay), I have been known to carry $10,000 in cash, locked in a fireproof vault welded to my truck) -- but THAT'S a rarity. My advice (backed by 30 years living debt free) is to pay cash for most purchases. Buying toys with credit is a trap. Don't fall for it!
How is the $4000 income transfer satisfying the 600$ payment if the new total is $6000 not $6600? Don’t you still have to “pay” the $600 payment? Your income transfer would be $4000 minus the $600 credit card payment.
Ok, but without an LOC, all I have is my CC's. I can't put my loan on my CC. So, I thought making, not and extra payment but paying over the scheduled payment.
NO. the only way to pay off with a credit card is to get a cash advance and the interest is even higher plus with that limit and if it's a new card your cash advance I'm thinking is very low.
My suggestion is to get a line of credit with your bank the interest is typically lower and is very simple to paycheck park on that line of credit and get advance when you need it
More times than not you forget to subtract the monthly payment. If you have a $10,000 balance and the payment is $600, when you put your $4000 payment in you’re not going to end up with a $6000 dollar balance. They are going to take that $600 dollar payment out of the $4000 dollars. You will be left with the extra as a principal only payment and your balance should be around $5400 not $6000.
@@debrachapman8581 and the fact I am putting my entire earnings Into the line of credit. If I put my entire salary every month Into all my bills I would have my car loan payed off in short order and I would have thousands of dollars in credit from my utilities. I think this might have a better chance of helping someone who only makes a small margin of money above their monthly expenses.
It is not a loan-it’s a line of credit. A loan after paying the amortization schedule can no longer be used; whereas, a LOC doesn’t have an amortization schedule, can be used over and over once the balance is paid, and the limit can increase or decrease over time. So no a loc is NOT a loan. Two very different financial instruments.
@@VanntasticFinances so isn't the living expensive should be deducted from the total income before putting it on the credit card which will make the amount less on credit card.
You have to be disciplined, and not spend the extra cash flow, its not for buying crap, its for investment. Thats a whole other education process or program, everything needs a plan, why am i doing this.
QQ For anyone in the comments who knows. In the scenario above, tranferring your income into the LOC satisfies the minimum $600 LOC payment... However, my question is... won't the bank still take that $600 payment out of the deposited income? I'm sure I'm over thinking this. : )
If you have extra in your checking acct should you make extra payment on a vehicle loan? If using a line of credit to pay down a loan saves interest why not use savings where you’re getting less interest than the higher interest you’re paying on the loan.
It will take longer to pay off car loan making extra payment as opposed to making a huge chunk like 5k to principal from your bank personal line of credit. Because then your monthly payment will then reflect less of and interest payment and higher principal. Car loans/mortgages are interest heavy at the beginning. Putting chunks to principal accelerates the timeline you pay off that debt.
You can use your savings if you have the personal line of credit which is revolving. I think the extra money you have left over in your checking is your cash flow. So the strategy of velocity banking will work in your financial circumstance.
Stupid question. So when you pay off the credit card you are using for expenses, do you just move all those utilities to the next credit card that needs to be paid off?
@@tinabreon794 It's not - you use this method until all your debts are paid off, then you have no debt and all cash! But then you still have your revolving lines to use to invest in yourself, make purchases that will make you money and use Velocity banking to pay that off.
This woman is leading people to higher interest rates with no calculation for inflation. She also increases the risk if people lose their job that they will be in a much deeper debt situation with high interest rates. People are far better off putting extra money in a high interest savings account and building up cash, than being slaves to the bank. Everything this woman does is wrong.
You propose making extra loan payments FROM a line of credit, tying up the line until you pay it down with your income, but then say don't make extra payments because it will type up your paycheck. This is just a shell game -- at the end of the day a higher interest line of credit is going to cost you more money, it's simple math. Anyone who has taken a finance 101 course can see through your scam. You are a scammer.
Gosh I wish I could have stumbled on your video a year ago… shoot months ago. Would have saved me some pain. But when the student is ready the teacher shows up. So I’m excited about the journey!
@nadia I know, right?!? I needed this 20 years ago!
This is the video that finally made me see the light!☀️💡
I'm seeing that light with you!😄
@johnonethree !!!!!😃!!!!! So thankful!!
@eric SO GLAD!!!
Hello young lady. Glad to see you are still letting people know about velocity banking. It does work. Some people just don't like change. They have never used it but they will say it's a scam. Using your own money to do business is a scam. Why not use the bank's money to help your own money grow? Simple as that.
Exactly! Thank you for your kind words and for watching!
It is a relief for sure. Im glad she enlightened us. When we started we would leave $200 in the bank now we have $25 in the bank. We are just trying to figure out how to pay personal loans off when cash advance (cash into checking) was disabled. But we are living comfortably
I agree. It helps to let others know to get out paper and pencil and do the math a few times until It sinks in. Watch many videos. Eventually it works, and if they want to try something else do the math and se what works best. This shard to beat. Of course every situation is different.
@@carbecker9636 -- and as this is TH-cam, you can make a Googlesheet (spreadsheet) and stop wasting pencil erasers!
This woman is leading people to higher interest rates with no calculation for inflation. She also increases the risk if people lose their job that they will be in a much deeper debt situation with high interest rates. People are far better off putting extra money in a high interest savings account and building up cash than being slaves to the bank. Everything this woman does is wrong.
OMG finding your videos has changed my life! I'm still learning but started velocity banking TODAY! I did my research, ran the numbers and recalculated my budget. I'm so excited! Thank you for all this information you are putting out there for everyone 🙏
So EXCITED for you!
Any update?
@Madkilljoy I have an Upgrade Card with a 22k line of credit. I paid off all my revolving debt, which brought my balance owed up to 21k. I went from $37 cash flow to $400 cash flow and my Upgrade balance is at $18,200 😊 It's working! I can breathe again! I'm still learning how to make adjustments as needed because I have a couple of bills I can't pay with my card. Christmas this year has been a breeze compared to before and even took my kids on a family vacation to the mountains 😊
I’ve taken your advice for about a month now-you encouraged me to give it a go after I sent you an email with my concerns. Already I have paid off 1 card and the other is more than half paid off. That means I have lots of cash flow, and my credit score went up 50 points, which will bring more offers!! Thank you so much for all you do!
Did you have any problems paying your utilities with your credit card? My utilities will not accept anything but savings, checking
I was surprised how many places let me pay with credit cards. One thing, with utilities some would allow me if I was not on the budget plan so I discontinued it and paid with credit card. Try and see if that helps you? The lady I spoke with said no you can't, but when I tried it went perfectly well now for 2 months. @@smahleville
@@smahleville -- only (1) utility so far that needs ACH for me.
I'm working on my 2nd and final card 🎉
Where do I find the email program or information
I have been binge watching your videos! Absolute GOLD content! Thank you again!
Thank you for watching!
me too
You right, we do have to change our mindset. STOP using credit cards. If you don’t have the money for it don’t buy it. STOP thinking that you house is your best investment. Like you said in 1 of your videos, take out your mortgage for 500,000 over the life of the loan you’d pay 1.5 million. That’s without any maintenance done over the years. STOP leasing cars. Buy used and pay cash. Invest in yourself people. Learn how money works, follow the money. Sit down look at your finances and see where it’s going. Look at your family cell phone bill and cable internet bill. Those bills are big these days. Then add car and insurance for it. Then say to yourself I have this car to go to work to pay for this car. Stop keeping up with the Jones’s. Rant done.
she is right. after four years they don’t leave us alone trying to refinance. thank you again for opening my eyes.
I’ve actually only used velocity banking for just under a month and my FICO Score has gone up 54 points! Never have I ever seen such improvement in my score. Thank you so much Christy! You are a God sent ❤
I have cash flow without debt, paid cash for the house, car, no cards. All payments go to me. Cash is king!💪
This method only works if your are disciplined enough to stick to a budget monthly and not go beyond your normal budgeted expenses. For those that are already in debt due to poor spending choices this method can lead you further into the hole
You are right. but that doesn't mean we can't change and start making better choices. Possibly find another person you trust to help you go over your income, expenses, debt & cash flow each week or month. Work towards positive solutions and grow...
Also with The No Method System can continue down a path of debt servitude.
You are right 100% discipline, patience and live with in your means.
That goes for ANY method honestly.
False
We landed our month with a balance of $500 so we realized that cash flow is what people typically put into savings and leave alone but really cash flow is the allowance per month for debts. That's why cash flow is king
Thank you for all your videos, I truly believe the Lord brought your videos to my channel. They popped up so randomly. I’ve told many people about your method so far and we are almost 2 months in to doing your method. Thank you so much!!
Beautiful! Thank you for sharing!
Same! 🙌🏾
Ty so much for giving this info to the people, you make it so simple to understaned...money is such a huge part of our life 🙏 Ty 🙏🙏🙏🙏
I am happy that everyday I am learning about velocity banking. Thanks a lot for providing us a valued educational wealth management.
So thankful you are WANTING to learn! You’ve got great assets to work with. You’ll be debt free in no time! Thanks for watching!9
It works and I am so grateful that I found this channel!😊
Thanks so much. You have no idea how much you are truly appreciated! Blessings to you!!!
This is a wonderful thing, I’m so happy to find this to pay my debts!!!! Thanks Vanntastic Lady!!! 💕🥰🙏
Hi! Thank you for sharing a benefit of NOT making extra payments, but using the velocity method!
Found you about a week ago and I've been watching you everytime I get a chance
Thank you!
It's sad that people are so brainwashed to stay in debt that when someone presents a solution to get out of the debt they think it's a scheme. Fear is the real issue. Especially for people in such a bad position that it can't hurt to try but they would rather not make a move. God bless their minds and bring them peace so they can make the right moves.
I just found your page and its golden!!
Revolving line of credit is revolving interest payments.
If you never pay off the debt, you never stop paying interest to the bank.
How to expose yourself to bad luck 101!! She has to be paid by Banks. That's a scary way of expose yourself to human nature and flaws. She doing the Casino house thing. Keep the client betting........the house)banks) will finish by winning.
The problem is if you miss a payment you can LOSE YOUR HOME instead of just have to negotiate a settlement like with a credit card.
I believe you ! We have to stop using the credit cards in a compulsive way.
I pretty sure this is the way and May be the only one realistic.
BIG FACTS!!! HUGE FACTS!!!!.......it's like a hamster in a wheel! #debtrelief
Good morning, thank you!
Thank you for watching!
Get a PenFed Gold card. No interest no cash advance fee. Transfer the balance into your checking account pay your mortgage or car
I make extra payments in order to pay down my car and student loans faster but I make sure I have cash flow FIRST and pay everything I can on my charge or credit card.
I should be down to zero CC debt in about 5 mths just by using this method but you have to stay discipline, patience and live with in your means is the key. Once I'm at zero will ask for a line of credit to attack my home loan. Remember you still have to pay some interest.
I made the big mistake of refinancing my first home loan. It felt like a “win” and now know that is one HUGE scam by the banks out there. When I sold my house I basically lost out on over 10k because of that refinance. More videos are needed on the dangers of refinancing
@@AscDrewmaybe the $10k was closing cost and fees?
@@TooFly357 I don't think that's what he means, but then he would have known the fees were there and been able to make an educated decision, still not the bank's fault.
It’s moving debt with credit
Hello Van! I’ve watched a lot of your videos and I’m a bit confused. If I use my income to pay towards one credit card and add my expenses as well; how do I pay my other credit card payments? That’s what I’m confused about. Everything else I understand but not how my other credit cards get paid. Could you clarify for me please?
You would only use income towards one credit card leaving out expenses or bills that cannot be paid with a credit card. Leave that amount in your usual bill paying account.
I'm so glad I found your channel. I have 3 credit cards with a balance of around 4k. I took $1000 out of savings (only gaining .01 a month in interest) and paid off 2 cards ($400 and $1000) by adding 400 from my cash flow. The last card has $2400 balance and I will be applying my cash flow to pay it off in a couple of months. Question: what is your opinion on using a rewards credit card to pay monthly bills using your methods? Money in a savings account earns 1%, however I get as much as 5% rewards on my CC. Thanks for your videos.
@@AscDrew I did just that last month. I took a trip, charged about $850 on my card. Received $24 in rewards points, paid the card off and paid no interest for the month. Amazing results when you know how the system works. By the way, that $850 would not even gained me one cent of interest in my checking account. Thank you for the insight your channel provides.
@@AscDrew Thanks for the info.
Thank you for watching!
@@AmmoDude If you spent $850 (that you were going to spend anyways) and you got $24 cash back 1) that's free money, but it can also be considered an investment: that's also a 34% Annualized Return on the $850 (24/850 = .0282 * 12 = .339 = 33.9%; or 1 month 2.82% return). Great job (as long as you ensure to pay off each month and therefore NOT incur any interest charge that would quickly wipe out the reward amount!
@@AscDrew96Yep, the key is paying it off before the bank applies the interest. I have another card that sends me "balance transfer" checks every year with an interest rate of 4.5%. Comes in handy to combat 21% interest rate cards.
Yes it pretty clear: Corporations do it. In there way they got QE money ( free in many ways) they took that and paid large of the debt. Then used the capital on the cash line again but if it is rotating interests rates no. Try to consolidate the money one card. Here main theme is to stop paying the bank interest reduce that use the card as leverage, increase the cash line, it is not investment though it using money wisely
The whole idea of making an extra payment is to reduce the balance and reduce interest paid.
True, that was what I wanted to know more about. But the video seems to be about something else or am I just dumb?😅
How does interest rate affect Velocity Banking for paying off/down mortgages? My HELOC is variable and now variable at 9%. My mortgages are at 2.75%-5.00%.
Unless you are disciplined in your spending these using more debt systems can go very bad very quickly. If you have a $10k balance on a credit card you have a spending problem. The math works but it doesn’t fix the spending problem. Credit cards to spending addicts is like whiskey to an alcohol addict.
Enjoyed this 💡
I'm so glad I came across your videos. I appreciate them and I'm learning a lot. I've tried to do this a few times over the years, though I had no idea it had a name and was a thing. I just wanted to use my credit card for my expenses and pay it off with my paycheck in order to build credit and get the card rewards. I was never disciplined enough to do it right. I racked up the debt and couldn't pay it off. Your videos are super helpful and easy to understand. I like how you break everything down and explain it so well. One thing I'd suggest is to get a better audio set up. You're so smart and have enough money to get a microphone and make some high quality videos. Your videos are so quiet I have to run them on full blast to still barely hear you. Then when an ad comes on or the next video plays, it just about busts my ear drums and speakers being so loud (or a normal volume if your speakers aren't on full volume). I'm not trying to be rude as I truly appreciate what you do. Just trying to make a helpful suggestion. I couldn't make a quality TH-cam video to save my life, but I know you can! Keep them coming and thanks again!
I would say that once you’re out of debt. Don’t go back in debt.
What a novel concept!
Does this method help you if all of your debt is low interest?
Can you move car loans and mortgage loans into a ploc?
Your cash flow is income - debt. No you typically cant use credit card to pay rent/mortgage or car payment. But you can orepay car inshurance in full with credit card if you have availability, which increases your cash flow. Depending on how you get paid weekly / biweekly / monthly. Example weekly divide your rent and car by 4 set that aside untill they are due. The rest of your money park it in your credit card.
I love that I have options to pay off my debts faster, and your videos are helping me to reach my goal of being debt free even quicker.
But, I have to disagree on this part, especially with Capital One at the 6:00 mark.
I have TWO Capital One cards, one is Platinum. It takes an average of three (3) days for my payments to post, and those funds that I have just paid in are not available until after they've been posted.
Should the loan to be paid off lower interest rate than heloc? I ask the bank, heloc interest calculated compounded daily. Mortgage is calculated monthly.
People make extra mortgage payments to pay house off in 10years instead of 30
Thank you😊
I once had someone solicit a program for doing this. Is there a spreadsheet to utilize?
I'm trying so hard to figure out the benefits of this. Whether you pay debts out of pocket or through a LOC, the money is still "gone". Right? Except there is no interest on the out of pocket option. Please explain!
I would like to see this in real time. Like see 3 cycles/cc statements.
There is little benefit and a whole lot of risk. Imagine losing income and you still have this 20% rate loc. dangerous as it gets. This is how people get trapped and buried in debt right here
You can’t reuse the out of pocket money. Once you pay, it’s gone. If you pay with a LOC, you can reuse that money.
The only problem, is there are certain loan companies (cough) UpStart and UpGrade (cough) that don't accept CC payments. You would have to be more creative in paying those off using velocity.
You could use zero interest CC ask for convince checks and be sure that when making out those checks it's not going to be charged as a cash advance... I've learned this from another YTber and have yet to implement it
ask first if you use them what are the few if any?@@debrachapman8581
I’ve been following your tutorials, and am loving your advice! I also have to say that I absolutely LOVE ❤️ your beautiful shirt! I love lions tigers, and stripes! Please can you tell me where you bought it? Thankyou! 💕
@patricia739 At Chico's. Thank you for watching!
Thankyou! I live in Canada, but will look it up. 🤗
I just looked up my closest location. Unfortunately, they only ship within the United States. 😢
Great explanation. Love ur videos.
Hi I need help trying to figure out my bills and using Velocity Banking.
Thanks Christy for another great video! Could you tell me the formula to figure out the interest and time to pay off a car loan if I transfer the total remaining to an loa? And how do I figure out the remaining interest that I will pay on the loan if I stay with the dealer loan? Are there standard LOC interest and standard amortized interest calculators that I can compare effectively and accurately?
You can probably find a free calculator online if you google what you want
Problem with this in my country is that most places charge a fee to use credit cards (I think it’s like 2.5% of the purchase price), also you cant take cash out on a credit card without getting a cash advance interest rate (22.95%).
Do they have PLOCs in your country?
@@YouAREyoubeYou I don’t think so, haven’t heard of it but we do have something similar to HELOC, so I’ve starting putting my monthly pay in there and then transferring the money out to my account attached to my Debit card when I need the money or when I need to pay a bill.
Well paid 5k on credit card and they lowered my available max by 4K . Thankfully not my only cards .
I hate that, but it does happen. Very important to make micro chunks during unstable economic times.
DO YOU HAVE TO WAIT TO THE DUE DATE BEFORE YOU ABLE TO SPEND THE MONEY .
What do you think about insurance on your line of credit? Should you get life and disability insurance on your line of credit?
Yes, exactly what term insurance is for-debt. One should always have a term policy if they carry any amortized debt or any long term debt.
This is great , thank you for putting this information out. I am finally getting it. You are a God send.
Hi how do I make mortgage payment using a credit card. I don’t see how make payment on bank site.
I like your approach, but in the UK we can't pay many bills with credit card. For example, cant pay carinsurance with it, no mortgage payments, no loan payments, no water bill. Will use velocity approach partly though and can pay that way for shopping, petrol etc as line of credit with part of my income.
What about an emergency fund instead of using a credit card or PLOC/ HELOC?
Seems like the safer option for sure....
How about splitting the income between two credit cards. This concept would still work on both card payments, correct?
Yes, she just had a video on that question.
Would it also work if you took a cash advance from a credit card to pay off a loan?
So the only way this can work is with a line of credit. I can see how using the banks money really works. I have a question though, can this work for Canadians?
For example: if I have a Heloc and the monthly payment is 350.00, I put my income of $2500 onto the Heloc, my payment for the month is satisfied. But what If my expenses are $2500? Seems I would be short $350.00 for that month? If this is not correct please explain. Thank you
So what can I do when I have a personal loan and a credit card balance but do not qualify for a credit line. Monthly payment for my loan is the highest. Focus on paying off loan, or Credit cards first?
Paycheck park on CC because it's revolving. If possible Line of credit from your bank is optimal because the interest is typically lower. If you only have access to your throw all your money into that even automate your utilities and subscriptions food gas and evey paycheck since it's a credit card I would set aside money for mortgage/rent car payment (cannot pay with credit card) when rent or car is due set aside money for that otherwise paycheck park in the credit card. I also pay car inshurance in full to open up more cash flow. First thing before tacking debt is open up more cash flow anywhere you can. Finding cheaper phone plan if you don't use all the data from the big phone companies you can pay per gig. I've saved money that way because we typically have access to wifi at home. Shop around for electricity, lock in 3 years when you find the best rate because electric like gas goes up every year. Get rid of unnecessary subscriptions. They REALLY do add up. I only have prime they have a decent library and If available I use slow shipping and get digital credits and then once in a while use that to pay for new releases for free. You can't do that with Netflix.
Forgot minimum payment on your other debt ( loan ) untill your CC is paid off
@@debrachapman8581 Thank you!
Ok how do I use my 1000$ house payment on my credit card? Mortgage company will not take Card for payment! Many call this a cash advance and charge premium interest rates for cash advances?
I suggest getting a personal line of credit from your bank to use the velocity method to pay off your house which is what I'm doing. Then when you build enough equity get a HELOC
@@debrachapman8581 , by using my best Credit card as my line of credit, my cash in and out as cash flow satisfies my monthly payment and reduces total outstanding until I need the cash to pay a bill in the future ( like an $800 auto insurance payment due next month) I also get 3+% credits for many expenditures.
If I open another LOC account then I will still owe big minimum and interest charges on my outstanding credit card account, whose rate will far exceed the LOC against the house! ☹️
@@debrachapman8581with record numbers of people in credit debt, the last thing most people need is another loan. Nobody is factoring risk into any of these equations.
About to try this, but if I may ask but isn’t the only cash flow the credit card payment? I also see in my case I can’t do car, rent and not sure on car insurance yet any suggestions on this? Bad credit here!
How do I use a credit card to pay my car loan?
That you so much
Hi I've been watching your videos, I have a question about how to transfer a loan balance to my credit card when the loan doesn't expect credit card payments?
Need a balance transfer card…use convenience checks😊
Would you still choose to use convenience checks if they charge a 1 time fee of 3% to do so?@@VanntasticFinances
Thanks gor your vids! what's the difference between LOC vs a credit card?
Basically the same thing. Both are revolving lines of credit and use an average daily interest
LOC comes from a bank/credit union/ HELOC ( not a loan!)
Credit cards are issued by discover / chase/ BOA / American Express etc.
Some banks will do credit card as well.
The main thing to focus on is to NOT take a loan, but instead use a LOC or credit card
Genius, I will give this a try starting today. Thank you!
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That's what my mom did extra payments and payed early on pse an water . Ect
You cannot pay a loan or mortgage with a credit. I have to use my checking account and give him my bank information for them to take money out of my checking account pay my love. The same thing with my store credit card those I write a check..
so get another bank with a credit union... Lol. Why would you just use one bank?
She mentions that in almost all of her other videos. She is very aware of that.
Good morning! I'm glad you made this video. You answered the questions I asked yesterday. Now, would you still recommend people to have a separate emergency fund? Also, worst case scenario, what if the credit card company close the account after my income goes through?
Hello! It is a real concern that limits will be cut if you have been allowing the balance to stay at the limit or if you have been past due. You could call them before making chunk. They should be able to tell you. You can also “mini-chunk” to see what happens with limits as you make deposits. Good luck with that.
If you don’t have other cards or LOCs with available credit, then it wouldn’t hurt to keep some available cash so that you’re not stuck completely without. Thanks for watching!
You can think of it this way.. You can do both, chunk & save just in case. The banks are a mess right now and will be for a while probably. Protect yourself but if we don't take risks we don't get any benefits either. I am still moving forward. n Pay yourself first each month, repay yourself. think of its a Laon to yourself and leverage it time and time again.
Nicely done! Yes we are a fiat currency society - I actually had to go to the bank to get some emergency cash today as I haven't used a real dollar in a few years. Most transactions to date are using plastic, phone or your signature.. who'd have thunk we be like this to date.
A lot of people. It's literally written in the Bible from 2000 years ago.
Using credit as a "same as cash" tool scares me. It's too easy to overspend.
I'm debt free, so although I do carry JUST ONE credit card, it is for an emergency ONLY.
I also impose a $100 limit on its use UNLESS I am purchasing something online, in which case, right after I make my purchase, I IMMEDIATELY use my bank's bill-pay feature and pay off the charge IN FULL.
Also, as a general rule of thumb, if I want to purchase something, I do so ONLY if I have the CASH on me (although, if I'm buying cattle or in the market for a deal on a tractor or bailer (hay), I have been known to carry $10,000 in cash, locked in a fireproof vault welded to my truck) -- but THAT'S a rarity.
My advice (backed by 30 years living debt free) is to pay cash for most purchases.
Buying toys with credit is a trap. Don't fall for it!
How is the $4000 income transfer satisfying the 600$ payment if the new total is $6000 not $6600? Don’t you still have to “pay” the $600 payment? Your income transfer would be $4000 minus the $600 credit card payment.
Ok, but without an LOC, all I have is my CC's. I can't put my loan on my CC. So, I thought making, not and extra payment but paying over the scheduled payment.
I have 8000 c card with 28 % my van pay off is 16000 . Should i use the c card to pay the van off ?
NO. the only way to pay off with a credit card is to get a cash advance and the interest is even higher plus with that limit and if it's a new card your cash advance I'm thinking is very low.
My suggestion is to get a line of credit with your bank the interest is typically lower and is very simple to paycheck park on that line of credit and get advance when you need it
Your teaching is like Crack I can't stop watching them, thank you so much
More times than not you forget to subtract the monthly payment. If you have a $10,000 balance and the payment is $600, when you put your $4000 payment in you’re not going to end up with a $6000 dollar balance. They are going to take that $600 dollar payment out of the $4000 dollars. You will be left with the extra as a principal only payment and your balance should be around $5400 not $6000.
Not on my loan. The interest was the only component added.....at the post payment amount. Not the entire payment.
Not on line of credit. They will for a loan.
Two different things
I think your forgetting to include interest
@@debrachapman8581 and the fact I am putting my entire earnings Into the line of credit. If I put my entire salary every month Into all my bills I would have my car loan payed off in short order and I would have thousands of dollars in credit from my utilities. I think this might have a better chance of helping someone who only makes a small margin of money above their monthly expenses.
The payment of $4000 satisfies the payment required as long as of the same or grater amount.
but a line of credit is a loan a credit card is a loan
It is not a loan-it’s a line of credit. A loan after paying the amortization schedule can no longer be used; whereas, a LOC doesn’t have an amortization schedule, can be used over and over once the balance is paid, and the limit can increase or decrease over time. So no a loc is NOT a loan. Two very different financial instruments.
on my PLOC no matter how many times a month I "Make a payment" on my line I'm still hit with a monthly payment required
Some expensive will not accept a credit card for payment.
True
@@VanntasticFinances so isn't the living expensive should be deducted from the total income before putting it on the credit card which will make the amount less on credit card.
Exactly, but you have to pay expenses.
We are grateful for this and are utilizing it now :)
I never heard making extra payments
But i still have to make the loan payments.
You have to be disciplined, and not spend the extra cash flow, its not for buying crap, its for investment. Thats a whole other education process or program, everything needs a plan, why am i doing this.
QQ For anyone in the comments who knows.
In the scenario above, tranferring your income into the LOC satisfies the minimum $600 LOC payment...
However, my question is... won't the bank still take that $600 payment out of the deposited income?
I'm sure I'm over thinking this. : )
No because you have satisfied your minimum payment
Unless you have it set up for automatic payment. If so then relinquish the auto payment
If you have extra in your checking acct should you make extra payment on a vehicle loan? If using a line of credit to pay down a loan saves interest why not use savings where you’re getting less interest than the higher interest you’re paying on the loan.
It will take longer to pay off car loan making extra payment as opposed to making a huge chunk like 5k to principal from your bank personal line of credit. Because then your monthly payment will then reflect less of and interest payment and higher principal. Car loans/mortgages are interest heavy at the beginning. Putting chunks to principal accelerates the timeline you pay off that debt.
You can use your savings if you have the personal line of credit which is revolving. I think the extra money you have left over in your checking is your cash flow. So the strategy of velocity banking will work in your financial circumstance.
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Stupid question. So when you pay off the credit card you are using for expenses, do you just move all those utilities to the next credit card that needs to be paid off?
Yes
Sound like a merry go a round
@@tinabreon794 It's not - you use this method until all your debts are paid off, then you have no debt and all cash! But then you still have your revolving lines to use to invest in yourself, make purchases that will make you money and use Velocity banking to pay that off.
That's what I'm doing. Plus you make bonus points. 1 1/2% dont sound like much but a few bucks plus, just for paying bills, is better than nothing.
This woman is leading people to higher interest rates with no calculation for inflation. She also increases the risk if people lose their job that they will be in a much deeper debt situation with high interest rates. People are far better off putting extra money in a high interest savings account and building up cash, than being slaves to the bank. Everything this woman does is wrong.
You propose making extra loan payments FROM a line of credit, tying up the line until you pay it down with your income, but then say don't make extra payments because it will type up your paycheck. This is just a shell game -- at the end of the day a higher interest line of credit is going to cost you more money, it's simple math. Anyone who has taken a finance 101 course can see through your scam. You are a scammer.
thank you!
Thank you for watching!!