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

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6 дек 2022

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Комментарии : 607

@uchihaitachi4629 Год назад

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

@VanntasticFinances Год назад

😂 well, that was precious! Thank you for watching

@yolandabrown9026 11 месяцев назад

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

@vcp93 7 месяцев назад

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

@sidshri6080 6 месяцев назад

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

@rafytorres4599 6 месяцев назад

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

@timsatterfield9752 3 месяца назад

@@rafytorres4599 my brain exploded at that point.

@coilymo 9 месяцев назад

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

@VanntasticFinances 9 месяцев назад

Glad it was helpful!

@colinkakahi2324 Год назад

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

@nancyblessing8411 Год назад

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

@VanntasticFinances Год назад

You’re welcome! And thank you for watching

@johndunston2394 Год назад

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

@VanntasticFinances Год назад

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

@Trever78 Год назад

Your video should definitely be featured in schools around America honestly

@leeannhibbard2749 Год назад

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

@melstrashbin 10 месяцев назад

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

@pmp2559 7 месяцев назад

The banks and institutions will not allow that

@loft27ss 4 месяца назад

@@leeannhibbard2749 Dave Ramsey teaches it

@BrianZiegenfuss Год назад

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

@crankybastid2197 Год назад

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

@jeffreyslater1656 11 месяцев назад

And by weekly payments reduce principal and time

@redfo3009 4 месяца назад

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

@ABCD-si7px Месяц назад

You are missing multiple points.

@jayallen6862 26 дней назад

The fear is strong in this one.

@dougbullis8462 Год назад

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

@VanntasticFinances Год назад

Exactly!

@MichaelFrancisco973 Год назад

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

@jv8296 Год назад

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

@Marcus-gi4jb Год назад

@@MichaelFrancisco973 curious to see the replies to this

@Locomaid Год назад

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

@andys5203 Год назад

Awsome advise. 😊 thank you

@jpgarc967 11 месяцев назад

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

@joecies Год назад

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

@cchamilton1985 4 месяца назад

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

@HoaTruong-rg2fp Месяц назад

She and people like her would NEVER do that because its easier to sell "Velocity Banking" without the side by side comparisons. The comparison would show minimal net benefit between "velocity banking" and the other methods.

@TheBaron671 Год назад

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

@arule2share888 Год назад

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

@byhislove 11 месяцев назад

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

@Zombiekiller76 Год назад

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

@kevinpaige4177 Год назад

Facts!

@Paulk305 11 месяцев назад

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

@VanntasticFinances 11 месяцев назад

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

@trinitybruns 9 месяцев назад

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

@frankthatank2324 11 месяцев назад

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

@2119rocky Год назад

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

@jcmadstock 11 месяцев назад

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

@vonnie3922 7 месяцев назад

Thank You For Existing.

@ryanwilliams989 Месяц назад

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

@StellaMaris-lv2uq Месяц назад

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

@hunter-bourke21 Месяц назад

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

@maggysterling33254 Месяц назад

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

@hunter-bourke21 Месяц назад

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

@BiancaSherly-qt6sb Месяц назад

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

@808pera6 Год назад

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

@desmondhughes9143 Год назад

Thank you

@mrpush2532 Год назад

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

@iman-klt 4 месяца назад

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

@pkdenaissance Год назад

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

@VanntasticFinances Год назад

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

@pkdenaissance Год назад

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

@VanntasticFinances 9 месяцев назад

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

@sheneathahollowell2750 Год назад

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

@mrgalikanookis Год назад

Where is part 2?!

@thehowtostudios1980 Год назад

Its crazy the ratio of home loan to car payment

@Nsmithq99 Год назад

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

@w1975b Год назад

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

@VanntasticFinances Год назад

Good answer! Thank you

@VanntasticFinances Год назад

And lose all of the cash flow? No way!

@jv8296 Год назад

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

@justbrowsing803 Год назад

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

@bladesofarmour Год назад

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

@Gropmag215 Год назад

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

@deena4967 Год назад

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

@simonbeaumont4132 Год назад

🤣🤣🤣

@db3575 10 месяцев назад

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

@anncamp4676 10 месяцев назад

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

@amyroberts7990 9 месяцев назад

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

@MrFuture2084 9 месяцев назад

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

@amyroberts7990 9 месяцев назад

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

@VanntasticFinances 9 месяцев назад

Welcome aboard!

@ABCD-si7px Месяц назад

You can pay with the HELOC.

@debbies6192 Год назад

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

@colinkakahi2324 Год назад

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

@hdstrong93 Год назад

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

@briancroston1684 Год назад

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

@dezrvnone2483 Год назад

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

@lisaeccles8036 11 месяцев назад

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

@kathyking9928 Год назад

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

@justbrowsing803 Год назад

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

@DL-by8el Год назад

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

@rowland4117 Год назад

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

@interestingfacts4943 Год назад

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

@pleskbruce 6 месяцев назад

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

@christygomez7071 Месяц назад

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

@wrksnfx Год назад

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

@jenniferfehnel3233 6 месяцев назад

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

@tomburns890 Год назад

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

@tonyl9821 Год назад

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

@lavartye7814 Год назад

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

@josephmcquade4879 11 месяцев назад

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

@InspiraAccionDiaria Месяц назад

On month 7 you had 300 + 10,000 that equals 10,300 Not 13,000 / I can see some mathematical errors but the principle of your teaching is RIGHT ( you said it several times, you are not a mathematician but a Velocity Banker Expert and you are right ) Keep it up - You got a New subscriber now, Blessings

@ChubbyUnicorn Год назад

🤯 I need to get a line of credit.

@sollymaykorn Год назад

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

@BloodySoup74 Год назад

HELOC or PLOC

@sidshri6080 6 месяцев назад

@@BloodySoup74 whats a PLOC please?

@BloodySoup74 6 месяцев назад

@@sidshri6080 Personal line of credit.

@Omar-Dawood 6 месяцев назад

@@sidshri6080personal line of credit ploc

@JackofMasculinity 6 месяцев назад

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

@morrisdavis9231 4 месяца назад

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

@nate7249 25 дней назад

A way to get around if your car company doesn't accept CC payment is to take out a 10k loan with your bank then out that toward your car and use your CC to pay the 10k. Check mate.

@MrTexaninNC Год назад

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

@Sugarxspicenails Год назад

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

@transformwithvickie Год назад

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

@EmilyAllan Год назад

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

@abrgamer6867 Год назад

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

@VanntasticFinances Год назад

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

@Sugarxspicenails Год назад

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

@dair1972 Год назад

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

@sherrybandy322 Год назад

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

@blakewilson3062 Год назад

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

@DanielCurrier Год назад

Research this topic and then come back and rewatch

@Ingrid_Abrams Год назад

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

@dominickwynn2435 Год назад

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

@dennisp4395 Год назад

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

@isaacrayc Год назад

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

@amyroberts7990 9 месяцев назад

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

@AndreaUrban-me 11 месяцев назад

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

@MsALCrespo 9 месяцев назад

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

@AmandaGatesHome 7 месяцев назад

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

@Tina-tz2ud 10 месяцев назад

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

@carolynowens2788 4 месяца назад

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

@sleepy580 Год назад

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

@VanntasticFinances Год назад

It was originally 72 months. Thank you for watching.

@briancroston1684 Год назад

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

@chadjordan9683 Год назад

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

@VanntasticFinances Год назад

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

@seangarnham7834 Год назад

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

@dec1slh Год назад

@@seangarnham7834 heloc or ploc

@wendyprew7254 Год назад

I'm confused as to y she's not using the cash flow but the full amount of income

@dhspam Год назад

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

@ramonsolis3967 11 месяцев назад

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

@coreyczech Год назад

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

@russellash8755 Год назад

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

@TravisDickson-jf5vb Год назад

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

@shiraz1971 Год назад

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

@Rivas789 11 месяцев назад

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

@Rivas789 11 месяцев назад

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

@aironwhite6533 Месяц назад

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

@captainsaveaho253 11 месяцев назад

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

@stanlystanly9964 6 месяцев назад

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

@loft27ss 4 месяца назад

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

@lisamarieutley9607 6 месяцев назад

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

@vickiebell9798 10 месяцев назад

is the mortgage payment and remaining car loan payments a part of the monthly expenses?

@InspiraAccionDiaria Месяц назад

Beautiful - question, can you pay a Credit Card with another Credit Card ( LC ) to eliminate that debt?

@princessjmo31211 10 месяцев назад

At Mo 6 would the car balance be lower than $18k at least by a little?

@biggdogginthephilippines7067 Год назад

where does your mort or rent fit into this?

@vicentesanchez7168 11 месяцев назад

What happened the Video cut out .. after Month 7 it was Getting Great ..

@JS-jv6rg Год назад

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

@ericsmith2465 Год назад

Yes, you are missing something. Pay closer attn.

@robbievalen4364 Год назад

😂😂🤣🤣😁😁😂😂🤣🤣

@stephenfoster9009 Год назад

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

@VanntasticFinances Год назад

The LOC!😁

@denzelchandler557 Месяц назад

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

@part1801 Год назад

If you're using your credit card this much you gotta be getting a lot of cash back money

@w1975b Год назад

If that's an extra for the card, not all cards are cash back.

@allantheoret5389 Год назад

Unfortunately, this is the most confusing math to do your financing ever. And she does not have $1575 for cash flow. It is only $575.

@luv2laff473 Год назад

I think you’re adding the $1000 + $2425 but she said the $2425 is her total cost of living for the month, it includes the $1000 living expenses.

@stevelozano9523 11 месяцев назад

I guess the idea but am stumped. Thr goal to pay the car note is by using LOC/CC and paying with monthly income of 4k, but since she has a 62k home loan on top and cannot pay that with CC (possible LOC depends what is used, she cannot use her entire 4k income to have funds for mortgage. Am I wrong? Also, by paying a large chunk of the car note, you she didn't have to make any car payme ts to the original loan for 6 months (no payments made during the example payment plan)?

@localone1597 Год назад

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

@anthonyhayes3166 Год назад

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

@anthonyhayes3166 Год назад

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

@kathsch8966 Год назад

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

@carolynwhitfield5100 Год назад

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

@christinepenkala3690 11 месяцев назад

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

@tonyt8807 Год назад

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

@lolabear3862 7 месяцев назад

But when were the monthly expenses paid?

@_HC36 3 месяца назад

How do you deal with the credit utilization?

@antoniodavila9540 9 месяцев назад

I am trying to picture this model with 4 credit cards and one HELOC at 7.25%. Your example is with one single credit card.

@nuggz4424 2 месяца назад

None of the financial institutions I use accept credit cards for loan payment. How do you do this with my credit card?

@spenceh4 11 месяцев назад

Love your videos but I thought that you couldn’t use a credit card to pay on a car loan?

@coreyrichards4303 Год назад

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

@almmason7 Год назад

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

@aaronrayborn 7 дней назад

How do you use a credit card to pay down a car loan?

@robtrace8777 10 месяцев назад

would this still work if you had 10,000 in cash from a bonus or selling something?

@kimsvlog8765 6 месяцев назад

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

@6axlepwr 2 месяца назад

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

@sliv5sliv Год назад

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

@shannonsmiley6436 Год назад

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

@edwardfrench1690 Год назад

@@shannonsmiley6436 ❤

@tinabreon794 Год назад

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

@sliv5sliv Год назад

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

@VanntasticFinances Год назад

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

@user-nu4py2mu6o 6 месяцев назад

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