How To Pay Off A Credit Card with -0- Cash Flow! I am not a Mathematician, but the concept is REAL
ฝัง
- เผยแพร่เมื่อ 10 ม.ค. 2023
- Welcome to your New Financial Life of FREEDOM!
💻Website: www.vannfs.com/
📞Book Me For 1-1 Coaching: calendly.com/vanncwi
📝Download My FREE VANNtastic Finances Worksheet: www.vannfs.com/resources
👕Shop From My #VANNtastic! Online Store: vanntastic.myshopify.com/
Join my PRIVATE FACEBOOK GROUP here👉 m. groups/2517512...
FIRST LIEN HELOC 👉 flhambassador.com/christyvann/
🙌 Have My 7-Figure Coach Help You Launch & Grow An Online E-Commerce Business: dreamclients.org/vann
🏦 INFINITE BANKING CONCEPT
go.oncehub.com/mstv
GET HEALTHY! While Losing Unwanted Pounds- OPTAVIA!
Go Here coach.optavia.com/120001158182
FETCH! Come save money with me! Sign up w/ code 1EQG55 & get 100 pts:
referral.fetch.com/vvv3/ref
Christy Vann and its affiliates do not provide financial, tax, licensing, legal or accounting advice; the information presented on this web site/TH-cam channel are presented for information/educational purposes only, and following the advice in this video is the responsibility of the viewer and not the video creator. By participating in this TH-cam page, you agree to comply with the following guidelines. In any case, the information provided is “as is” with all faults and without warranty of any kind, expressed or implied. In no event shall Christy Vann, or any affiliate organization be liable for any damages, lost profits, or lost data even if we have been informed of the possibility thereof. Linked Items may create a financial benefit for Christy Vann. Christy Vann is an affiliate of Unstung Marketing LLC and may receive compensation for referring you to their services.
At 42, I've come to realize that money is a tool. I’ve worked so hard over the years to realize that if you don’t make money work for you, you can’t experience true freedom. I’m glad I found that out although it was later in life, but that marked the turning point in my finances.
I'm in my late 30’s. Once I get paid, I begin to spend on irrelevant things. I work hard for my money, so I believe I can spend it on what I like. The older I get, the more my perspective shifts. I want to take my finances into consideration and put myself in order before it's too late. How are you doing it, Sir?
Herman Jonas, an astute financial analyst is the brain behind my success. I've gotten into a plethora of assets with $33k spread across stocks (options and futures) for the short term and Roth IRA, index funds, and ETFs, for the long term. Now I sit back, and just reinvest at intervals while I enjoy my retirement.
Do not forget that when it comes to the stock market, prices can be erratic, rising and declining quickly, often in relation to companies' policies, which individual investors do not influence.
@@Denniss20
I agree that the market can be quite unpredictable, but working with Herman has been a game-changer for me. His market insights and strategies are consistently spot-on. It’s not just about profits; it’s also about the peace of mind that comes from knowing you’re in capable hands.
@@Roymysterio
How can I reach him, please? I'm buoyed by the good recommendations I’ve come across elsewhere. I need help with investing. I'm ready to pay for his services.
When you got to month 5, it should have been $8000 not $7000 - you forgot to carry the 1 over.... That said, this is a brilliant solution but the key is to NOT use the credit card unless you have an unexpected situation. Thank you for your wisdom!
Wrong. You use the credit card for everything.
You're correct 6400+1600 is 8k. However the concept is correct.
In general, you shouldn’t. But this plan doesn’t work at all without paying with a card
Where is the 21% interest charged daily in these calculations??
@@-Jason-L Supplement: Only if you can pay off the credit card fully every month without accruing interest.
Hey ppl, I'm a retired computer/IT person, Yet I still find Web backdoors so informative and straight forward. Thanks for your advise and helping the people...........Great work and love watching.
You: How can I get in touch? Me: Type their name as it spell on your browser
Can you explain to me how $400 a month over 17.5 months (which equals $7,000) pays off $10,000 at 21% interest? I’ll save you the effort…it doesn’t.
My goodness! I've been following financial TH-camrs for YEARS. Never have I found this info. I love it! You have changed my life.
@Victor ❤️🙏🏽
@VaNntastic you are subtracting the whole $400 each month from the balance and totally forgetting the majority of that $400 payment is being thrown out the window in interest. Right? The balance wouldn't drop by $400 a month, unless I'm missing something. It would only drop by $100.
Good example. I use velocity banking as well. One thing you are not calculating is the interest each month on the CC since the balance is not $0. Simple interest will make the monthly interest rate much lower however. What I would recommend doing is as soon as the balance goes down enough, I would recommend applying for another CC with 0 interest for 12-18 months. Then transfer the balance remaining on existing CC to new interest free CC.
Love your video though. Keep up the good work!
Exactly! Thank you for sharing and for watching!
You are correct. Just by taking the highest and lowest balance each month and dividing by 2, you will get around $152 in interest that 1st month. $400-$152=$248 and that $248 will increase every month doing this method. This is a nice concept and I learned it 3 or 4 years ago.
EXCELLENT! Thank you for watching!
I believe she did calculate the interest on the CC towards the end of the video, but she broke it down to "daily interest" (as opposed to monthly interest) to emphasize the impact that the Velocity banking method is having on reducing the overall debt on the CC ! ... Now your suggestion of applying for a zero percent CC is right on point because it will further enhance the speed at which that CC dept will be payed off !
@@Obamacain9 thank you for watching!
OMG, I was lying on my sofa, depressed and just overwhelmed on the interest charges I am paying on my credit cards. Watching your video gave me a surge of energy and I immediately got up and downloaded your worksheet! I feel totally empowered with this information! THANK YOU FOR THIS INFORMATION!
Do you best to transfer all your credit card debt to 0% interest balance transfer offers. I have $18,972 and I paid less than $1 interest last month. YES, less than $1.
She never adds the interest on the outstanding balance.
Has it been working for you? I'm curious.
@@davidqheffner You had to pay 3%, almost $600, to transfer that. It wasn't free, but I just did the same. It's worth it. That's maybe two months of interest on the high rate cards.
You've got to have a decent score to get a zero interest card...
I have 2 chapter 11’s that are dismissed.The reason I have 2 is bcz I did not use an attorney.I was trying to stop an eviction,but when I went to try to add another month’s rent to the bankruptcy, but the guy filed another one. About a month later,I ended up losing my job.They are scheduled to fall off in January and March 2021.Since I’m looking to purchase a home soon but still there.I am currently enrolled in *850 Credit Restoration* and I must say,I am loving it thus far.I’m doubling it up with your podcast videos and learning A LOT! Thank you.I’m ready to join the millionaire club!!!
Took a year for me to build my score from mid 400s to 600 where I’m stuck now. I have 2 credit cards, a self account, auto loan. Everything paid on time and utilization 5-10% paid off every month. Thinking of applying for a new credit card or something cause my score isn’t increasing Great recommendation, this helped me alot. Web backdoors was one of the best things I had come across as far as boosting your score. I don't remember the actual number of how much but it was somewhere cool!!
@@VenommRevengeits a bot trying to sell a financial service
need to update your bots copy and paste, idiot. youre 3 years behind the current time 🤣
I just wanted to say thank you for sharing this. Because you're right. The worst thing that you can feel is hopelessness. And I hope that someone who is on the verge of losing hope finds *Web backdoors* and realizes that as long as you're still alive and breathing, there's a chance, there's HOPE that the future is brighter then the present day.
Thank you so much! This was quite very helpful. I'm happy this was the first video I clicked when I wanted to search on the topic. Thank you *Web backdoors* for your simple and easy to digest explanations.
Check out the real backdoors that Kevin Mitnick shared and getting rich is a few keystrokes and python scripts away on a Kali Linux device. 😂
This definitely works math-wise. But it is all predicated on the idea that her mindset is in a "get out of debt mode" and not a "Oh, my CC is no longer maxed out. Sweet! I can charge more to it now!" Which is probably what got her in trouble in the first place. Imo, it really doesn't matter if one uses a velocity method, or gets a second job, or cuts back on expenses, or whatever. It really boils down to the mindset and self-control an individual has-and most people suck at self control.
EXACTLY! Its time to ADULT if you’re using this strategy. Thanks for watching!
That's why people need to shift that mindset. Everyone complains about having financial problems but they're not willing to do anything about it.
I got to tell you great idea and great solutions and new friend here . Love your channel
I watched this a couple days ago, opened up a 21 month, 0% interest card and moved my consumer loan over to it for my new AC unit ($8900 with Ally Bank a year ago, 0% interest and no payments for a year, goes to 19.99% in June - NO WAY!!. I've been making payments anyway). $6700, will pay probably $200/mo for 21 months, then move it to yet ANOTHER 0% interest card. When the card arrives, it goes into the shredder immediately.
I know to the penny what my revolving debt and consumer debt payments are. I'll be taking the money that I need to pay to accounts that can be paid with credit cards, and put it into one of my cards with 27.65% (Crapital One, I have two of them both the same interest). Those are only a total of about $1400 so it should go away fast. Then start working on my $7k card at 9.99% at the credit union.
@Carol Tuttle winning 🎉
Wow! This is great advice for someone like me who is drowning and can't seem to do anything to pay down my CC debt. THANK YOU!!
Hey Vann! Thanks for taking the time to explain this clearly for those of us who are a little slow on the uptake 🙂 I watched another of your videos on this and was confused about throwing the entire monthly income at the CC debt. Now it makes perfect sense to me! It's a different way to look at how to pay down the balance and improve our credit score at the same time. I can't wait for my wife to see this video when she gets back from visiting the grand kids. Thank you so much!
I think it would be better to apply for a zero-interest credit card around month 3, after your credit score has increased, and transfer the balance. That would give you a year (maybe more) where 100% of the monthly payment goes toward reducing the balance. If it's not paid off by the end of the interest-free period, apply for another interest-free card and transfer it again.
That would work well. The velocity would make it better!
That's my method as well!
@@KeciasTourLife Yep. That's how I got mine paid off. I'm down to the last one, and the balance is under $3k. It's not an interest-free card, but it's pretty low at 9%.
Except..... 10% cash transfer fee...
@@kelzagoodman Gotta look for the cheaper ones. I think I paid 3-6%. And it's still better than having your balance on a 17-29% card.
Month 5. I failed math miserably but I'm pretty sure 6400+1600 = 8000 not 7000. No worries I'm still watching and learning.
I was thinking the same thing!
how do the expenses magically go down because you paid your credit card bill?
your expenses is 1600/mo and it is important to stay within that otherwise velocity banking won't be effective
@user-nb8cp2wj1m
Notwithstanding the math errors she had, if you did not chg your spending at all, the budget of 3000. included the 400.00 cc Bill.
Since you are depositing your check there (onto the card as a payment before paying your regular bills "through" the card instead from your checking acct/debit card, that part of your budget that used to go out to the cc payment (400) does not have to be paid separately because your deposited check counts as a payment.
However a 10k card will definitely have int. being added back to the balance.
1. You must have disciplined spending too not add anything except those reg. bills to the card.
2. And because of the interest this wouldn't happen quite so fast.
3. It would help GREATLY to cancel any spending that is not essential so you won't be walking so close to the edge that any real life "surprise' wouldn't throw you off the edge. There must be charges in spending if income does not increase or you're not going to get all the way through a debt reduction plan.
@@user-nb8cp2wj1m Part of the $2000 in expenses was the $400 in credit card interest. By transferring the balance to a 0% credit card, the person doesn't have to make the interest payment, dropping monthly expenses to $1600
The timing of finding you is amazing!
Thank You!
I totally understand velocity banking but I still watch and share all of your videos because it blows my mind how genius it is. I love the way you break down various scenarios so people can understand that this works and they don't have to be a slave to their debt. Thank you, Christy!
Can you explain to me how $400 a month over 17.5 months (which equals $7,000) pays off $10,000 at 21% interest? I’ll save you the effort…it doesn’t.
I really appreciate your videos. I would like to point out that you never mention the interest that will be added monthly and your total at the end was $8000 not $7000. Bless you for all you are doing to help others.
In 16 years of school this 12 min video is the best advice i've been given. Should of been the #1 thing taught.
You would have the same result if you just make the $400 payment every month
I think an additional benefit is you don't have as much interest on the days where the additional expense money is still on the credit card.
@@cq8822 No it wouldn't. She's explaining the pay down effect which eliminates her minimum monthly cc payment. Interest, which wasn't factored in, is also much less than her regular previous cc monthly payment and the interest also starts to decline each month of the pay down. If she kept on paying her minimum monthly cc payment on her maxed out card and still using the card, she would never pay it down.
I think the Number 1 thing taught is live within your means and pay off credit cards in full every month. The problem is a $10K max'd out card at 21% interest. Debt is slavery. Usury is slavery. Use credit responsibly or leave it alone. A little self discipline goes a long way.
Yall want to teachers to teach everything under the sun with a $50K salary and a room full of disrespectful kids.
OMG! I just had a light bulb moment. As you were doing this example I plugged in my own numbers and sure enough the CC balance was coming down. That is the coolest thing I have seen in a long time. Your a genius! Thank you so much for sharing your knowledge.❤️
Thank you for this! I’m about to implement this and I have a new hope now for getting this balance down!
This is certainly a most interesting tool in the debt elimination process. There is however, a math error that was missed during the presentation that you might want to edit. When You added the $1600 monthly expense to the $6400 balance in month #5 you show a balance of $7000. The correct balance at that time is, of course $8000 (you didn't carry the 1). This does NOT invalidate the concept but for clarity and accuracy, perhaps the video should be edited.
As a second point of clarification, the interest each month HAS NOT been accounted for (only the monthly payment). When the monthly INTEREST is added back in, the geometric progression (or should I say regression), while still effective, does Not exhibit quite as much of this phenomena. Still potentially worthwhile, though.
Of ALL of the videos and books that I have viewed and read, I have never seen this approach shown let alone illustrated so well. It could provide one more tool to help everyone to eventually get out of debt. Thank You so much for sharing. Greetings from Ontario, Canada.
This is obviously missing the interest added back in. If the $400 is the credit card minimum payment which it doesnt appear to be at 21% interest then yes this would work but in real world experience with zero cash flow and paying a real life minimum payment of $200-$250 and only $25-$75 being left after $175 in interest this really would take a long time to achieve. But don't give up.
The real kicker here would be if the credit card company decided to lower the card limit when it starts to get lower and thus negating the credit score gains
Ya,,but she's also charging...
Thank you for the encouragement!. I realize that the mistake is in this earlier video, but it has brought so much encouragement to so many people, I hate to pull it. Thank you for watching.
@@Ew00kie The CC company can lower your limit once you pay a large chunk. That has happened to me.
Of all the velocity gurus online, you have been the easiest to understand. You’re a natural born teacher. Kudos!!! 🎉
Well..thank you so much for your kindness and thanks for watching!
Yes you have the best explanation and a new follower
Thank you!
@@VanntasticFinances I can follow this but I am having trouble figuring out the last payment on card bc when I get it to $0,I still have to pay bills out of it and so it keeps going back up..I hope this makes sense and you get this..Thanks for sharing,just found d this channel..😊
@@marionhammers8654 are you talking about paying your expenses on your credit card is what takes the balance back up? If so, that is exactly what is supposed to happen. Just pay off that balance on the due date every month to avoid interest charges. Did that answer your question? Thank you so much for watching! If you are a subscriber, go to this link and enter to win.👉gleam.io/n2wRT/300-cash-giveaway
OH MY GOD! This is GENIUS!! I am totally doing this! Thank you! Subscribed!!
She’s right-I’ve done this for years. I didn’t figure this out until later in life on my own and when you have multiple cards it works better.
The problem with this is that any credit card can (and often do) lower your limit any time (especially during difficult times). So, if her credit limit drops from 10,000 to 8,000 (and lower as she pays it down) she will go without gas, food, etc because she won't have available credit. If she had a couple thousand banked first, this would be worth taking the risk.
I was thinking the same thing since it happened to me a long time ago. Definitely putting away some emergency cash before would help but that is the problem with the person she is using as an example, they have no extra cash. So possibly only start with half not the full 2k.
Generally, if good repayment is there, CC company won't lower the limit, in-fact they increase the limit. Own experience.
@@vijayk9457 Not in a failing economy. They do it all the time, under those circumstances Good credit, or not. And people are caught by surprise.
She's maxed out at the beginning of the solution so she has no firewall to begin with. This is a sound strategy
Nice trick! While it works well on paper, most folks are in debt because of spending behavior. This won’t change the spending behavior and it would be hard to stick to the budget while putting everything on a card. It could work for some, though.
You're correct! Won't help for overspending behavior.
Thanks MYSTICFLIP! You put our nonprofit organization in a whole new ballgame. We've been struggling to get capital and you came through getting us a grants. Our organization have extremely excel by now thanks for getting us funded.
Thank you so much! This was quite very helpful. I'm happy this was the first video I clicked when I wanted to search on the topic. Thank you *Web backdoors* for your simple and easy to digest explanations.
Hey ppl, I'm a retired computer/IT person, Yet I still find Web backdoors so informative and straight forward. Thanks for your advise and helping the people...........Great work and love watching.
This was so simple and refreshing ...... Thank you you just saved me from a 10k credit card payment i was so stressing about. Creatively financing my finances.
But, the balance doesn't go down $400 a month because interest is added to the balance every month. I had a 10K balance on a card once and the minimum payment was $300 a month, but the interest was about $86 a month, so only $214 of the $300 payment was applied to the balance. As the balance slowly came down, a little less interest was charged every month. But that's almost a 3rd of your minimum payment just to cover the monthly interest added to your balance.
But if you made a BIG paydown (like $2000) the interest would be much less than the $98. That big paydown is the key.
@@roundedges2That's not how it works. Interest is charged on avg daily balance, which is still high through the entirety of this "plan." She should be at least multiplying the balance after each payment by 1+(.21/12) to account for the interest accrual. Makes the balance fall MUCH more slowly.
You are correct. She never added in the monthly interest. She's making the numbers go down every month without adding that in. There will be less interest because of the daily average, but I can assure you there will be interest and it's not insignificant. Yes, this method helps, but not nearly as quickly as she shows.
Open a zero interest card for 12 month plan and transfer your balance over.
Let’s say you had paid $600 a month on the card, then $514 would go towards the balance, thus paying it off quicker and having less interest to pay down the road.
One thing I’d mention is when at month 5 you added $6400 balance plus $1600 expenses you came up with $7000. The correct answer would have been a new balance of $8000. Also $400 x 5 months = $2000. $10,000 -$2000= $8000. You end up doing the same thing almost as just paying the $400 a month payment. The only thing it seems like you're doing is maybe paying a little bit lower in interest because you're paying that extra money but that's about all you're really doing.
“A bit lower interest” yeah that is what we looking at.
Is not just the interest but you're also "eliminating" the $400 monthly payment by paying it with your income. This is covered in full detail in the video.
@ralphbowes1446
she was making that $400 monthly payment with her income anyway, it just wasn't going directly to card, she was manually paying it. @@Future_Legend_Told_Me
@@Future_Legend_Told_MeI’m a little slow, can you help me understand. Is she saying that $400 monthly payment totally disappears or she have to pay less on her monthly cc bill because the total bill is less than a month prior?
@@luddman77 She says two things... (1) the $400 payment is made by putting her income into the credit card account instead of into her checking account; because her balance comes down drastically, the available balance is now a lot higher thereby allowing her to pay her other bills using that same credit card throughout the month (2) because she pays a lot more than the $400 minimum, it reduces the average daily balance and thereby reduces the interest being charged every month.
I pay my credit card off weekly. I haven't had a balance on there that has been charging me interest for years. I get back rewards in an amount of over 800 dollars a year and now the credit card company pays me. I love it.
I really like how you explained everything with the board and marker. I'll be watching some more of your videos.
What card do you use that you get $800 a year?
Thank you ! I am looking forward to trying this ! God bless you !
You literally have more views than my most watched video on my channel and you only been doing this for a couple of months. You stayed committed it’s been a honor working with you as your coach.
You’re a precious guy Denzel. Thank you!
Oh, so it’s you who didn’t teach her how credit cards work? Seriously dodgy spreading misinformation to desperate people.
I stumbled across your video and instantly knew this was made for me. I'm going through the same thing with my business but just knowing that I'm not the only one who's experienced this just pushes me to go harder. Continue to put out informational content and sharing your story, THAT is what separates you from the rest. Much gratitude sir and *Web back doors* was so helpful during the process of boosting my credit.
Her math is wrong. Is is flawed.
I think one of the biggest issues with credit cards is the lack of education when it comes to how to use them properly especially in financial investments. Our schools in the US teach next to nothing when it comes to personal finance and investment . I got into credit card debt in college because I wasn't aware of the consequences of not paying my card off. The whole buy it now and pay it off later deal seems pretty harmless if you aren't aware of the interest rates. Once I was told how much it costs to be in credit card debt, I immediately started paying my card off and also went to profitable Investment I've never been in credit card debt since. Investment is the key to sustaining your financial longevity, since I realized this i have been successful.
@@nancydis4050you're absolutely right, you've remind me of what someone once said "The mind is the man, the poor is in it and the rich is it too". This sentence is the secret of most successful investors. I once attended similar and ever since then been waxing strong financially, and i most tell you the truth..investment is the key that can secure your family future.
Everyone needs income as their tool, emergency fund as their security, investments as their hope, and budget as their control. Get those in place and you'll feel at peace with your financial picture.
I urge everyone to start somewhere now no matter how small, this is literally the time for that, forget material things, don't get tempted,i became more better the moment i realized this.
Thank you for sharing. I plan to implement this example next month.
The problem with having your emergency fund built into your credit card is that you have no control over your credit limit. I remembered I had a Discover credit cards that were consider my emergency fund. In 2008 most major banks lower their credit limit. I had never been late my credit score was good, but the economy was tanking. I lost about $15,000.00 in available credit between Citibank, Discover and Chase. They lowered my available credit to my current balance. Which becomes a vicious cycle because it affected my credit score as my utilization when up 100%. I would suggest having an emergency fund in easily accessible currency. Remember the fine print on your credit card agreement. They have the right to change any terms including how much credit limit you have access to. You have complete control over your emergency fund.
You should have applied for a new card
@@andyfumo8931 applying for a new card when your credit score drops 40 plus points, during a credit crunch and unstable economy would not have help. I would have been denied and my credit score dinked again.
What if credit card company decreases limit from 10k down to current balance after she pays it down 2k. Citi did it to me on two separate cards. Paid them both down below 30% usage in attempt to boost credit score post divorce and they immediately lowered credit limit to within $100.
Citi just closed my card without notice and I had available credit on it, they said they have the right to terminate your credit at any time. If I would've put all my income in it I wouldn't have been able to use it anymore .My Victoria's Secret card was paid off sitting with a $4,000 limit and they just dropped it to $100 limit also. I don't think it's a good idea to put in all your income that you need for the month.
I literally mentioned this exact same thing. Had it happen to me with paying down a card and then noticed was at 99% utilization even after reported to credit karma. Looked and the company had lowered my limit to right above the new balance that had paid down to.
Yeah citi did the same to my wife and I. Citi double cash card just got raised significantly last month but not where it was. They did it to a lot of peole. I heard the were inticipating a run on the bank after some other banks failed. They stoped lending to gain capital.
Already wrote my commentary before but here is an extra appreciation….. Keep pumping out the eye opening videos.
THANK YOU SO MUCH! @Magi_of_Kemet
I’ve been checking out a couple of your videos today for the first time And all I have to say is I l❤️v you where have you been all my life😃
6400+1600 is not $7000 but the concept is very good .
Will take maybe additional 5 month. Or so for the full balance to be paid off.
See?? I am NOT a mathematician! You are so right!! Thank you for sharing that information and for watching!
@@VanntasticFinances I appreciate the concept. Makes sense
You present the concept in a very clear way and it's very understandable.
Well, thank you Boyce!
Thanks for continuing updates I'd rather trade the stock market as it's more profitable. I make an average of $34,500 per week even though I barely trade myself.
I'm surprised that this name is being mentioned here, I stumbled upon one of her clients testimony on CNBC news last week.
After I raised up to 325k trading with her I bought a new House and a car here in the states 🇺🇸🇺🇸also paid for my son's surgery (Oscar). Glory to God.shalom..
I have made more than 90 K God bless Deborah Davis God bless America 🇺🇸
Wow I am surprised Deborah Davis is being mentioned here I starting off with $5k ...now with massive portfolio.highly recommended..
Please who is this Mrs Deborah davis.
I could not be more excited. My husband and I saw this video about 3 months ago and it's almost the exact situation we were in (literally within $100 of the numbers mentioned) so we knew it was a God send. We immediately put it into practice and we're happy to report that for the first time in over a year, our card balance is going down!! We've shared this video with all of our friends/family that are struggling with the same. Thank you so much for sharing this information!♥
Love this, it’s just one of many scenarios which is great for getting the mind to solve problems in a less stressful manner
Thank you so much ☺️
I think I get it. When you pay the $2k, that covers the minimum payment (which includes principal+interest). When you pay MORE than the minimum, it is applied to principal. So if the $1600 covers the minimum (which you add back per month because expenses), the $400 actually goes towards all principal, effectively lowering your principal balance. And since the principal balance is used for charging interest, the next month’s interest charge will be less than it was last month. You just didn’t show that part in the math. Did I get that right?
Exactly!
Oohhhhhh thank you because I was trying to figure out how this helped lol
Um no. Only if you have a 0% interest card lol. Your payment still is an interest/principle payment split. Your overpayment of $1600 is a principle payment, but only temporarily, for interest to be added to it again.
I think this sounds right. I’m thinking of trying it. Did you try this? Did it work?
Thank you so much for the tips. Makes sense to use money as a tool. I was stressed out about my credit card debt due to home repairs that were unexpected.
great reminder to get my head back on my shoulders!
One extra bonus to this method (if you have the discipline not to exceed your budget) is that with a number of cards, you get bonus points when you spend on the card. With putting in $200 per month, bonus points are going to accumulate quickly. These points can be turned into bonus payments made on the principal of the card.
That was a small trick that I have been using with my Walmart card. I use the 5% cash back for online orders to do online grocery pickup. So use the amount of the order to just pay towards the credit card that same day so it hardly affects the daily avg balance and satisfy the payment for the month and also use the cash back as payments to actually come out ahead of being charged interest since it carries a balance on the card.
This example is not taking into consideration the monthly interest charge.
You literally just saved me by watching this! I’m excited to get started and be stress free!!! Thank you!
You got this! Thank you for watching!!
Idk who this lady is but she’s doing a great service with these videos. Thank you ever so much
Makes perfect sense we are not A.I. or robots no little math mistake that some focus on is a big deal. I think I just naturally live the way you explain things. Avoiding interest as much as possible is the way people should live. ❤
This has been the best example I've seen that makes since and I understand the strategy. Thank you
SO GLAD IT MAKES SENSE! Keep moving forward and THANK YOU for watching!
God Bless you! You teach it very simple giving this free knowledge to hurting people why they clicked on your channel.
This was REALLY interesting. Thanks for doing it.
I am definitely going to try this. I have a 0 cash flow situation and this makes sense for us in this situation. Faster results!
I was VERY skeptical from the title… but what you said is so simple but so enlightening! Thank you!
Thank you so much ☺️
So what if you are at a point where you don’t have have a 10,000 limit? I have 3 or 4 hundred dollar limit!😢
Start where you are…
This is awesome!!! Thank you for sharing so well.
I stumbled across your video and instantly knew this was made for me. I'm going through the same thing with my business but just knowing that I'm not the only one who's experienced this just pushes me to go harder. Continue to put out informational content and sharing your story, THAT is what separates you from the rest. Much gratitude Marvin and *850 Credit Restoration* was so helpful during the process of boosting my credit
This man spends hundreds of thousands of time just to help us. He helps those in need while also helping us. He always puts a smile on our faces and we should appreciate it. Hats off to Him! I love you dude. Crazy I've never payed attention to the *850 Credit restoration* on the internet movement when I say ancestral your a gift to our people
This is a great way to approach lowering your credit card debt. Month 6 should have read $8000. However we get the point, great job.
This is great for those that can’t pay the credit card down aggressively. Thanks for sharing.
Thank you for watching!
Thank you so much! Can't believe I never knew this. 🤯
If I only had known this 5 months ago. But I know now and I’m grateful to have came across this. Thank you!
I’m thankful you were allowed to gain this wisdom, as well!
I didn’t realize I was using this method already until you explained how to maximize a zero cash flow. Now it made sense to me how to eliminate debt by not making new debt but transferring bills that would already have to be paid this gets rid of the monthly payments now all to worry about is keeping it going to lower the interest. Thank you 🙏
Thank you Jay!
This was really well done and laid out in the simplest of ways!!! Excellent teaching, I shared this!!
Thank you so much!
Thank you so very much! Many blessings to you!🥰
Thank you! Sounds doable and worth a try! Thanks for a way to manage credit debt better if you are in this position.
I don't have any credit card debt and I don't live in the U.S. but the title of your video caught my eye. What fantastic information for anyone in that unfortunate predicament. Great video!
Thanks Pixie!
Thank you, thank you! This is a VANNTASTIC method to pay down my credit cards that I never thought of. Please don't take this video down; the basics of it are extremely helpful and bring hope to us who wonder how we'll ever pay off debt! I'm forever grateful.🛐🙏
Thank you so much for watching!
Wow this is amazing! Thank you 🎉 sent this to all my siblings
THANK YOU. love your channel.
This is a fantastic idea, this requires a tremendous amount of discipline, and it’s definitely doable.
Thank you for watching
great concept, I have been using this method since I maxed out my credit cards to help my family
Excellent! Thanks for watching!
Omg your heaven sent 😇THANK YOUUUU…you have a new follower
Wow this is such great Advice. Thanks for helping
I so appreciate your videos, I sent your mortgage video to my wife after watching the entire thing. You are really giving people very empowering information that will help them. Thank you so much for doing this.
I was going to mention the math at 7:48 but this is a fantastic break down of the Velocity concept!
I been telling myself to do this. The picture wasn't clear for me though. Your vid and explanation made the picture clear for me!!! Thank you
Loved this video so much, thank you for this god bless you and yours.
Wow!! This was awesome. Thank you for shedding some light on this situation, honestly never considered or even heard of this method of paying down debt and building cashflow at the same time. Definitely hit the subscribe button 💯%
Thank you Gamel!!!
Amazing, my friend. You’ve got a new subscriber! As an English teacher trying to better my family’s future, I especially appreciate these easy to understand videos! Numbers make my brain hurt! 🤣
You are so precious! Thank you so much for the kind words and thank you for watching!
I can understand the struggles. I love doing math myself and I always love to learn how to solve them. But yes I did happen to have been making a mistake like that and it baffled my mind.
I like math. Letters make my brain hurt lol.
Thanks Vann !! Amazing reduction of "time in debt"...🙏❤🤓
Thank you !!Love the examples ❤
That was well said and planned! Getting creative with your finances is the key to Velocity Banking 🏧
Exactly and thank you!
When your credit cards are maxed out . The first thing that comes out of your payment is the interest. Paying 2k will not open her credit line to an available 2K balance. It will open balance (X) to whatever her payment is minus interest ESPECIALLY if her utilization is maxed on the card. Not to mention the conversion of an APR to a DPR when you carry a balance. I’m sorry but I do not agree with this “Method” because it mathematically does not make sense. Unless she’s 100% utilized at a 0% APR/DPR. Then no I’m sorry putting in 2K will not make the card available balance by 2K
Wow now this is great information!!!!Thanks
I never really understood any of this stuff. It makes sense. Thank you!
Best advice EVER! I wish I had this information when I had a lot of credit card debt.
Thanks Mundy!
as a basic idea it's sound.. the only mistake is that there is interest still on the credit card (reducing each month) which have not been included in the monthly expenses - so the process will take a lot longer than suggested
Yes, exactly. She is misleading.
Right. This is so flawed.
Yes...interest needs to be factored
You are correct, if she had a really good reward card, it would help but overall, she was still paying down her card $400 every month. minus interest
Thank you for watching
This is amazing information! Thank you
Makes so much sense!! Thank you!
Great concept! I’m sure if you did an updated vid with corrections and interest would be just as popular! ❤ Maybe a part 2? :) Thank you!
Yes!😂
so the largest CC limit I have is 1500.00 with a min payment of 25.00 how will this work for me?
I love how your amazing math does not include the 21% interest of the credit card. bro science legit
Facts that's what I said too. Only thing I would be saving would be interested wouldn't pay my balance down quicker. Nowhere and video do I hear anything about how much they're taking for interest out of that extra. I might save interest but my bills are due when I get paid once a month
We need more immeasurably wise and compassionate humans like you on this planet.
Thank you for sharing *Web backdoors* , Adam. I bet I'm not alone when I say this video found me at the perfect moment, and there are a lot of things here that I needed to hear right now.
Wow. WHERE have you been all my life??? I just subscribed to this wonderful channel! I can’t wait to share your vids with my children! I could try to explain it to them but why would I when I can just press the play button and let them watch for themselves, then we can chat afterwards. Thank you ever so much for sharing your wisdom and knowledge!! It’s greatly appreciated! Merry, merry Christmas and may your New Year be full of blessings, both big and small!!
On month # 5, there was 8400- 2000= 6400, then plus the 1600 added to that is 8000, not 7000.
I love your idea, it's great! I'm a new subscriber
🙄
8:30 It's 2000(400*5) that she's having a positive cash flow
Love this, it is basically rotating money so you pay less interest in the long run. I have taught my kids about closing dates and making purchases after the closing date so they get more interest free time to pay it back. We also pay all of our utilities with our credit cards and just make the payment to the card each month. Years ago we had tons of credit card debt but we are finally free of it.
At last an example of a person who was successful with this method. Thanks for sharing.
Wow. This is going to save me. Thank you!!!!
Nicely done!! We don’t always see that as an option, especially when you feel like your drowning.
Thank you, I wish I'd seen this before paying off all my credit cards 100% but I now know how to save myself if I get to that point again. :)
I know, right?!? Thank you for the kind words and thank you for watching!