How To Pay Off $50,000 Car Loan With $1,000 

Nothing wrong with a $50k car, as long as you can afford it.

@ascencio_77 these cars not worth 50k waste of money

Haha! Where I live, that's a normal second hand cat!

You definitely shouldn’t be buying a $50k car if you’re only qualifying for a 10% interest rate. SMH!!!

What do you recommend? ​@@ladyd6375

@@theplatformstudio5420 because the LOC interest is always lower than any other debt you will have! That is the secret the banks won’t tell you! The only debt with better rates than a Loc is a home loan but with home loan you are only putting money in and don’t have the flexibility to pull from it

@@theplatformstudio5420 probably has to do with the fact one is making such a huge payment that it doesn't make a big ding, just saying

Your paycheck that’s deposited will cut down the interest on the line of credit significantly..

@@Treemonieee if the line of credit interest is 10% and the interest on the loan is only 7%... you are going to be paying approx. $500 in interest for that 10 months plus the normal interest per month... if you just put that 1,000 extra a month on the principle, in 10 months you would not have to pay the interest on the line of credit and you will owe the same amount at the end of the 10 months.

He mentions that.

With VB, its not about taking out more debt, you use it for all your bills. As long as your income is going into your LOC, you always satisfy your min payment. Its a useful tool to have.

@@ericfinn5484 the problem is where are you getting that extra $1000 dollars to make a $1830 monthly payment?? On top of rent and your other bills most avg people can’t make those payments, but with a LOC you can and the interest is way lower than the auto loan.

If you are paying bills out of that LOC then you never replenish the original 10k?

@@jko0526 yes you will you will put your money into the loc each check it will be paid off in 10 months or less depending on how much income you bring in.

@@jko0526 You are replenishing but its small because you are paying less LOC interest per month. When the car is paid off then you put/leave the car payment into the LOC to pay it off sooner.

@@OG_Poutine that’s the point ! The LOC is almost always going to be lower than any debt interest rate

@@victorfletcher4188 but not in this example

That's not how rich people stay rich. They always borrow and invest on borrowed money. You're right tho, and some people don't have liquid cash like that or a working spouse or taking care of someone. So its,like another person said, it's about paying the smallest amount of intrest in the fastest way possible. You are right though. 😅

@@victorfletcher4188 disagree on that one, a secured loan (ex buying a car) will almost always have a lower interest rate than an unsecured LOC…

@@jrr7031 I mean it’s definitely a case by case scenario. You’re absolutely right, rich people usually have access to low low low interest loan which allow them to borrow and invest. But for most people, borrowing money to pay down another debt can quickly become a downwards spiral of debt.

Awesome!

Absolutely. If you can afford to pay $1K p/month to pay down the LOC in 10 months, why not pay that $10k every 10 months saved towards the auto loan without a 21% charge on money you already have in 10 months!!!

Also what happens to the $8300 you're paying between the 10 month $10k payments?? The principle should be much lower. This math definitely isn't mathing.😂

The Loc is almost always lower interest rate than any other debt.

Simple interest vs compound

@@truh_von_tay your comment make ZERO sense. Repaying a 10k line of credit at 1000$ per month for 10 months shows ZERO interest

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she's active on What's app

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I had to type it that way because of community guidelines.

Where did you get a 21% interest rate on the LOC? My Loc is at 10% interest rate way lower than any car loan or credit card.

Awesome

The creator of the video mentioned 21%​@@victorfletcher4188

I did, look for my comment! This velocity stuff doesn’t work because of the interest rate on the loc. I’m his example, you end up paying 1850$ more in interests over the course of 32 months vs just making additional payments of 1k$ on the car.

@@OG_Poutine Exactly. It never makes sense. It just makes people feel like they are cheating the system. Its usually people that are already bad with money who fall for this stuff. If you understand that this doesn't make sense, you most likely won't need it.

Did you get that from the $1,000 Cashflow leftover to pay(Replenish) the Line of Credit. Plus the $830 to pay the Auto Loan?

Yes. Great video

Absolutely! Building a strong investment that isn’t controlled by the government is a smart move in todays unpredictable economy. digital assets offer a unique opportunity for financial independence.

Building wealth indeed requires good habits, like investing in solid opportunities such as digital currencies. Having a reliable investment manager and broker is crucial for making informed decisions and managing risks effectively.It's wise to seek out certified professionals who can provide efficient management.With diligence, descipline and the right guidance, success in wealth-building becomes more achievable.

Thank so much for the advice been seeking means of being successful in the digital market,do you recommend any professional broker I’m ready.

Anna Dorris Arthur is the best I’ve encountered so far, so I recommend her.

I'm curious to know more about the expert broker you're considering. Could you share some details about their experience and why you believe they might be a good fit for people’s trading.

Super

Nope, you've got it. This doesn't usually make sense for low interest secured loans (like auto loans). We dug out of some credit debt this way and saved thousands of dollars (and a default) 5 years ago. Started having monthly budget and forecast meetings with the wife and our credit has never been better.

@@tonyrichmond9428 Awesome!

Try using Excel it is easy to calculate. I used VB and I thin it works.

Or you could max out your pretax 401K and HSA contributions and Roth IRA, (including the extra allowed if you over 50) buy $2000 each month in CD's (I'm not getting 6% though) and still have $5000 a month to deposit in your savings after all expenses including a new $51,000 truck. Buy a new Toyota 4Runner; that will blows up your depreciation and maintenance theory. Spending 50K on a POS that depreciates 60% before its paid off is stupid. Everyone is in a different boat.

That does not make sense at all

@@anthonygarland933 velocity banking you don’t use credit cards, but use a LoC like a heloc.

Yeah something isn't adding up there. That makes zero sense.

Thanks for sharing your experience.

Ok. I thought it was just me. This math don't math

Heard, I appreciate this bro. This is the reality check most people need but don't want, and I know this isn't a new concept but sometimes a simple reminder is what people need to get their shit in order.

Thank you so much!

You pay a little more in interest by paying the extra $1000 per month he had over paying the 10k when available. The key is extra money and discipline.

Easy pay through a credit card if you have one.

@DrFinancialLiteracy I have look at my pay n budget I get stress looking at all numbers. I try to break it all down..by using this method. My car can't be put on a credit card..

@@TheContractFlipper ok.ifvyou want someone just to talk through it, please call or email anytime.

@@coreyjones3898 Yes but what kind of interest is being paid on the loc? He's making it sound like he's borrowing the $10,000 and paying back each month without any interest being charged.

I use convenience checks from my credit cards and just deposit my check onto the credit card easy as pie.

A line of credit is not a credit card. Is liquid money you pull out from an account. They will charge you interest on the daily balance.

​@@gina77duc44On the daily balance or average monthly?

Awesome!

Yep

These video are great!

Check you local credit unions.

Do not do any of this, If you have cash flow, use that. If you have a low interest loan available to consolidate debt, great! do that. Velocity banking is crap.

Thanks!

Not yet but they will soon!

I have been trying to use it

Awesome

With the help of Michael I was able to Pay off within three weeks of my new purchase

@@ghandihill7652 but the $1000 is the banks money not yours

I'm surprised that you just mentioned Natalie Strayer here also Didn’t know she has been good to so many people too this is wonderful, i'm in my fifth trade with her and it has been super.

The very first time we tried, we invested $2000 and after a week, we received $9500. That really helped us a lot to pay up our bills.

Natalie Strayer has really set the standard for others to follow, we love her here in Canada 🇨🇦 as she has been really helpful and changed lots of life's

I'm new at this, please how can I reach her?

She's always active on Whats~App...

Your salary is what's making the payment on the HELOC. The K he's talking about is the cash flow after all expenses have been taken out of said salary.

​@@darrellenglish2898Amen thank you!

Yes. Super easy

@@darrellenglish2898 Not sure I understand. Do you mean the $1,000 that is sitting left over in his LOC is essentially his Monthly payment AFTER he pays the Car Loan debt of $830?? Because the video makes it seem like AFTER ALL expenses have been paid, there is ONLY $1,000 left of cashflow which confused me because im wondering then how will he pay off the car loan AND the LOC with only $1,000 left over every month.

Amen to that!

Makes no sense

You ain't missing anything. His Math ain't Mathin'.

Amen! You must watch the videos again it is a great tool!

​@@william_leonardAmen

​@@dennisdmenace6249Amen

Yea right

Ok so basically what he is saying is that you need to have at least a $1000 surplus every month after your bills are paid. For example if you get paid 6000 a month, you "pay" $6000 a month into the heloc, leave at least $1000 from the original $6000 (monthly). The $830 a month should already have been budgeted to be subtracted from the money that you put into the heloc monthly after leaving the $1000 to repay the heloc ($5000). After 10 months of leaving the extra $1000 in the heloc you can redeploy the 10k into the auto loan. Rinse and repeat. He is making it a lil more confusing than it has to be lol.

This sounds like a game equity loan not a heloc

This doesn't make any sense so you're not missing anything. This video is foolishness.

​@@monteb9249notice how he doesn't mention the interest on the HELOC.

Yes awesome!

I believe what he should have done was give a better explanation of how he was dealing with the LOC. The idea is that you should be making more money that the amount the LOC or credit card being use to accelerate the debt paydown (more then 10K for the month). So, instead of direct depositing your paycheck and other income in your regular checking account, you would now direct it to the LOC. The LOC will now effectively be your new checking account and where you would pay your bills from. If you pay off the LOC each month you have, then effectively you have no interest payment. You will pay all bills including the monthly car payment of $830 from the LOC checking. Now, remember that you borrowed the $10K to make a big lump sum payment on the car note which is where the real saving is being done. You still owe the 10K on the LOC, but each month you are paying because you have shifted where you deposits are now going, but also using it up again when you pay your bills (so you will always owe the $10K but resetting it every month. In the scenario, the person has an extra $1000 after paying all their bills, so basically they are depositing $11K per month in the LOC. The extra $1K will remain in the LOC after paying all bills each month, so in 10 months the LOC will be officially paid off. So if you only wanted to just put that extra $10K to the car note, then you could now stop sending your deposits to the LOC because the 10 months of the extra $1K being left in the LOC now paid it off. The whole time you paid no interest while using the banks 10K to save a chunk on the interest of the car. But, why would you stop there? The minute to pay off the LOC, then you would just borrow the 10K to make another lump sum payment on the car .... keep this going until the car is paid off ... much faster. There are cities in the mid west and south east where you can buy a house for $70K. This would save a ton on an amortization loan (mortgage). You would have to be extremely disciplined to structure and keep this payment cycle going, especially paying off the LOC each month before the date when interest is calculated. Its not impossible but its also not for everyone, its not a one size fits all solution.

Awesome!

i PAID OFF MY LINE BY DUMPING MY PACY CHECK INTO THE loc.

Try another video! VB is awesome

It is also sometimes what knowledge and mindfulness that viewers bring to the table.

1,000%… So many holes in the video leaving the viewers confused with more questions

@@BigBrotherMotown he almost lost me with that too, but he just meant that if you pay a large sum towards the balance the interest on the car loan is not as important because you would be saving way more in interest than you would if you just made the minimum payments. Using the bank money is always smarter as long as it’s leveraged correctly.

Seriously lol

@@victorfletcher4188 Yes but That $10,000 Line of credit is being charged 21% interest.

@@victorfletcher4188Yep OPM!

Either great credit score, or HELOC... which you also need good credit to get.

Basically you never pay much of it because it’s calculated daily rather than monthly and you’re putting your whole income on the LOC and continuing to rotate for expenses.

@@kylew9387 well I do get that part... I use this method. I only pay for expenses with my CC unless otherwise not permitted by an institution. I then pay my full balance every month. I have $235,250 in credit lines with a $316k/yr income. Even with those figures I would not be able to feel comfortable, I could swing it no issue If I had to, putting $10k on my credit card from my car loan. But if you're recommending someone who makes $50k/yr to do this, it's going to take them 6-7 months to pay that balance off, putting 100% of their income toward that $10k credit credit card. Their going to pay 27.99% interest on their cc only, not afford their car payment now and not have money for daily expenses. I'm intrigued... Please explain

He is referring to a HELOC: home equity line of credit. It's based on the amount of equity in your home. Let's say you have $50k of equity in your home, you can borrow against that from your bank or credit union.

All the extra words is confusing to the average person.

@@hunnit.brickz who has an extra $1000 laying around when I could just pull it from my LOC without breaking a sweat.

@@jennifergraham9736 Sounds reasonable.

One of the best videos

@@jeezze07 that second mortgage is not a mortgage, because you have the power to pull from it and pay your bills off way faster than you would with your own money. It’s smarter to use the banks money.

You use the banks money, its a lower interest rate and cuts your interest on credit cards and car loan. I have some money in the bank and my home has appreciated significantly so I am borrowing my own money from the bank. This way, my money in my savings is always there. This is a method people use to pay off there mortgage early. It works really well for paying off credit card debt. When you have a 10k credit card maxed out and a $400 payment it will take years to pay off and the interest will be almost as much as you are paying off. You use your line of credit to take that away freeing up that 400$ a month 6% is better than 21 pr 30%! This line of credit is used line a checking account, all your bills are paid from it. This reduces interest, pays all your bills and you satisfy the loan.

LOL

Great position to be in!

Yeah

Keep watching!

Awesome right!

@@allison9008 10k from a Line of credit you have to apply for.

I believe what he should have done was give a better explanation of how he was dealing with the LOC. The idea is that you should be making more money that the amount the LOC or credit card being use to accelerate the debt paydown (more then 10K for the month). So, instead of direct depositing your paycheck and other income in your regular checking account, you would now direct it to the LOC. The LOC will now effectively be your new checking account and where you would pay your bills from. If you pay off the LOC each month, then effectively you have no interest payment. You will pay all bills including the monthly car payment of $830 from the LOC checking. Now, remember that you borrowed the $10K to make a big lump sum payment on the car note which is where the real saving is being done. You still owe the 10K on the LOC, but each month you are paying because you have shifted where you deposits are now going, but also using it up again when you pay your bills (so you will always owe the $10K but resetting it every month). In the scenario, the person has an extra $1000 after paying all their bills, so basically they are depositing $11K per month in the LOC. The extra $1K will remain in the LOC after paying all bills each month, so in 10 months the LOC will be officially paid off. So if you only wanted to just put that extra $10K to the car note, then you could now stop sending your deposits to the LOC because the 10 months of the extra $1K being left in the LOC now paid it off. The whole time you paid no interest while using the banks 10K to save a chunk on the interest of the car. But, why would you stop there? The minute to pay off the LOC, then you would just borrow the 10K to make another lump sum payment on the car .... keep this going until the car is paid off ... much faster. There are cities in the mid west and south east where you can buy a house for $70K. This would save a ton on an amortization loan (mortgage). You would have to be extremely disciplined to structure and keep this payment cycle going, especially paying off the LOC each month before the date when interest is calculated. Its not impossible but its also not for everyone, its not a one size fits all solution.

Try it for sure VB!

Right because banks arent handing that out easily

Yeah I tried but end up with a $50,500 HELOC. SMH

If you can dream it!

I sure do. Let me know if you need help

@@velocityc Yes.... Could you please send more info, currently in Bankruptcy.. I hit rock bottom, I've been watching the channel since The Joseph days.... R.I.P Joe...

U use your heloc loan or ploc as your bank.

But again can you explain the LOC... it's has a higher interest rate... I'm not understanding.

​​@@mychann33 The "higher" interest rate is simple interest. The loan's interest is amortized, which means that part of the payment goes to interest AND principal, whereas with the Personal Line of Credit, your interest payment is way less! Just look at the chart in the upper right hand corner!! The 3rd column is the amount of the $830 that's going to interest at the beginning of that car loan, and it's WAY MORE than what's going to principal!! My sister got a new vehicle last month. She's paying over $900, and over $500 of that is going to interest!! It's insane!! If you don't understand, look up Christy Vann in her channel so she can explain it to you. I find that she makes it easier to understand!! Her channel is called "Vanntastic!"

​@mychann33 No, you ARE understanding. This guy isn't even acknowledging the interest you have to pay on the HELOC. It's not sensible, period. Just put that "extra" grand per month DIRECTLY into your car payment. Say NO to taking a loan to pay a loan!

Not really very simple

@@dennisdmenace6249 Learn the difference between a "loan," which is close-ended, meaning, you pay in and can't take out, and it's on an "amortized schedule," and a "line of credit," which is open-ended, meaning, you pay in and CAN take out, and is a "revolving" line of credit. That's a HUGE difference!! Google it!!

Yeah

LOL

I believe what he should have done was give a better explanation of how he was dealing with the LOC. The idea is that you should be making more money that the amount the LOC or credit card being use to accelerate the debt paydown (more then 10K for the month). So, instead of direct depositing your paycheck and other income in your regular checking account, you would now direct it to the LOC. The LOC will now effectively be your new checking account and where you would pay your bills from. If you pay off the LOC each month, then effectively you have no interest payment. You will pay all bills including the monthly car payment of $830 from the LOC checking. Now, remember that you borrowed the $10K to make a big lump sum payment on the car note which is where the real saving is being done. You still owe the 10K on the LOC, but each month you are paying because you have shifted where you deposits are now going, but also using it up again when you pay your bills (so you will always owe the $10K but resetting it every month). In the scenario, the person has an extra $1000 after paying all their bills, so basically they are depositing $11K per month in the LOC. The extra $1K will remain in the LOC after paying all bills each month, so in 10 months the LOC will be officially paid off. So if you only wanted to just put that extra $10K to the car note, then you could now stop sending your deposits to the LOC because the 10 months of the extra $1K being left in the LOC now paid it off. The whole time you paid no interest while using the banks 10K to save a chunk on the interest of the car. But, why would you stop there? The minute to pay off the LOC, then you would just borrow the 10K to make another lump sum payment on the car .... keep this going until the car is paid off ... much faster. There are cities in the mid west and south east where you can buy a house for $70K. This would save a ton on an amortization loan (mortgage). You would have to be extremely disciplined to structure and keep this payment cycle going, especially paying off the LOC each month before the date when interest is calculated. Its not impossible but its also not for everyone, its not a one size fits all solution.