Velocity Banking Basics In Elementary Terms

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  • Опубликовано: 28 авг 2024
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Комментарии • 249

  • @eastcoastdevereaux7154
    @eastcoastdevereaux7154 10 месяцев назад +206

    I found this channel some months ago. I've been implementing this into my financial strategy and it truly works! I've paid off EVERYTHING in that period of time and am now using my LOC as my checking account like she says. What I found is that it takes DISCIPLINE to stick to this plan. You cannot pay down debt and be adding more debt on top of it or you'll be spinning your wheels. You still need to budget your income, and you MUST be DISCIPLINED and CONSISTENT with this strategy until you pay off EVERYTHING you need to pay off. Thanks Christy for all you do. I'm so blessed to have stumbled across your channel. You literally change lives and you're very necessary and appreciated ❤.

    • @debrawarner6165
      @debrawarner6165 10 месяцев назад

      How do you pay a payment when you pay a bill through your loc? Let's say I pay a 3g bill credit card? Is it because they grab it from the loc because checking has 0 balance and that 3g counts as a payment?

    • @debrawarner6165
      @debrawarner6165 10 месяцев назад

      So you pay a loc payment when you pay off a credit card bill 💸 when they pull to pay off the bill and since there is 0 balance in checking they grab it from the loc counting as a payment to the heloc?

    • @eastcoastdevereaux7154
      @eastcoastdevereaux7154 10 месяцев назад

      ​@@debrawarner6165hi! What will happen is that you can log into your online banking and transfer the money from your line of credit straight into your checking account. Then you can pay things like your rent/mortgage or any other bills you have that can't be paid with a credit card. What I do is, I pay everything with a credit card (that is NOT linked to my LOC) that can be put onto a credit card. Then I transfer funds from my LOC into my checking account and pay off that credit card balance by the due date (because I hate using debit cards). Then every time I get paid I transfer my income that lands into my checking account right back into the line of credit. I do this over and over until the line of credit fully replenishes. That's how I pay bills each month and never run out of money. But that's my way of doing it. At 2:59 in this video, Christy also explains how you can get a credit card attached to your line of credit as well. I hope this answers your question ❤

    • @VanntasticFinances
      @VanntasticFinances  10 месяцев назад +5

      That’s wonderful @eastcoast ! Thank you for sharing!

    • @viviendoalpresupuesto6926
      @viviendoalpresupuesto6926 10 месяцев назад +2

      Yes it works! I am doing that too. Discipline is definitely the key.

  • @PRAFETIK
    @PRAFETIK 10 месяцев назад +52

    This is the best financial channel on RUclips. Very detailed information delivered in a down to earth type of manner. God Bless you and your family!

    • @VanntasticFinances
      @VanntasticFinances  10 месяцев назад +2

      Thank you so much @PRAFETIK !!

    • @viviendoalpresupuesto6926
      @viviendoalpresupuesto6926 10 месяцев назад +1

      She's amazing

    • @VanntasticFinances
      @VanntasticFinances  9 месяцев назад +3

      @@jdrankwalter Then don’t do it. 🤷🏻‍♀️ I’m not mad at ya.

    • @SteveUTubesucks
      @SteveUTubesucks 5 месяцев назад

      For "the best financial channel on RUclips", she sure makes some glaring mathematical mistakes that can be caught by anybody paying attention.
      For example, she purposely excluded the $4325 in recurring expenses from month 3 to give the impression that the $10k debt had magically shrunk to $3191. In reality, it's $3191 + $4325 = $7516. It will take about a year to pay down the original $10k personal loan debt at that rate.....exactly the same as if she had directed that $375 of extra income on the left directly towards the original personal loan.
      If you want free financial advice on the internet, look elsewhere, and double-check their work.

  • @realweston
    @realweston 10 месяцев назад +37

    I just realize I have a reserve line, or line of credit, attached too my checking. I had the tools to get out of debt but it took a while for my brain to understand the concept. Thank you so much Van for continuing to upload videos as a reminder. It really helped 😂
    It all came to me at once in the shower last night.

    • @VanntasticFinances
      @VanntasticFinances  10 месяцев назад +2

      Hilarious! Thanks @realweston

    • @jerrylundegaard2592
      @jerrylundegaard2592 9 месяцев назад +1

      So you have concluded using a lone of credit is not debt? So you have concluded using a line of credit to pay off other debt is a good thing?
      One time using a line of credit to pay off existing debt is if the interest rate on the LOC is lower than the interest rate on the existing debt.

    • @beautifullife3881
      @beautifullife3881 9 месяцев назад +5

      I still don’t understand what is a line of credit and where you get it from

    • @jerrylundegaard2592
      @jerrylundegaard2592 9 месяцев назад

      @@beautifullife3881 A line of credit is credit which is available for you to use without applying for a new loan.
      For example, a bank may issue you a line of credit of $10,000. You may write a check (for example) on the account for an amount or several amounts which do not exceed $10,000.
      Once you access that credit you have a loan which you will pay back under the terms of the line of credit.
      A HELOC is a home equity line of credit. This is essentially a second mortgage form a bank using the equity in your home. As with any LOC, upon use the LOC becomes a loan which you will pay back under the terms of the LOC.
      A credit card is essentially a line of credit.
      Velocity banking requires the use of a LOC or similar to pay off existing debt. Velocity banking essentially requires you to use a loan from one source to pay off an existing loan from another source. This is not magic and it will not, in most instances, have any significant impact. In the end you still have a debt but usually to a different lender.
      The one time velocity banking might be beneficial is if you can get a new loan (LOC) with a much lower interest rate than the existing loan you want to pay off. For example, you can use a HELOC with an interest rate of 5 percent to pay off credit card debt with an interest rate of 20 percent.
      The key is to continue to make the same payment amount on the new HELOC as you paid on the credit card. The lower rate on the HELOC will result in less interest being paid which will result in the debt being paid quicker, provide the payment is not reduced.
      Advocates of velocity banking note the required payment on a LOC might be lower than the required payment on the existing debt. They suggest this gives you more cash each month, which might be true. But you still have the debt just from a new source (the LOC).
      Again, the only time this will work significantly is if the interest on the LOC is lower than on the existing debt.
      Another easy way to pay off debt is to use a balance transfer. These are offered by credit card companies. They usually offer very low interest for a limited period. For example one card might offer a balance transfer at 3 percent for 18 months. Using this to pay off a credit card balance at 29 precent will save much interest provided, again, you continue to make the same payment. After 18 months look for a new balance transfer offer.
      In the end there is no easy way to pay off debt other than paying down the balance. The single easiest way to pay down a balance is to find new credit offering a lower interest rate and continue to make the same payment.

    • @birdenlightening5855
      @birdenlightening5855 9 месяцев назад +1

      $31k car loan at 2.96% int 5yrs. Will paying it off using LOC at 10% lower the overall total cost of the loan and fully pay it early?

  • @kimberlyladzekpo7016
    @kimberlyladzekpo7016 5 месяцев назад +9

    I feel like the light 💡finally went on😂 It took elementary terms for me, but I understand this so much better now. Thank you Christy!!!

  • @RexRogers_
    @RexRogers_ 3 месяца назад +4

    I have been applying this technique for the last month so far and it has been working for me. The key I feel is to avoid crazy spending outside your means. Thank you so much!

  • @tranger4579
    @tranger4579 7 месяцев назад +10

    I used to do something like this years ago but with a credit card. I got the knowledge from a book I got at a financial seminar which I still have and can no longer find in publication. It's called the art of the charge.

  • @ReynaDPerez
    @ReynaDPerez 10 месяцев назад +38

    Some might say “but in a checking I don’t have to pay interest”… the key is to pay off front loaded debts and place them in simple interest lines.

    • @raiden031
      @raiden031 9 месяцев назад

      What is a front loaded debt?

    • @RyGuyTheAVGuy
      @RyGuyTheAVGuy 8 месяцев назад

      If only there where some kind of endless knowledge database you had access to.... hint, you're using it now.@@raiden031

    • @itsatrap7215
      @itsatrap7215 8 месяцев назад +4

      @@raiden031 Loans that are on an amortization schedule, like a mortgage or car loan. You pay most of the interest up up front.

    • @raiden031
      @raiden031 8 месяцев назад

      @@itsatrap7215 the amount of interest you pay in a month on a mortgage is a function of the balance and the interest rate, which is exactly how the HELOC works as well

    • @mithrilsilver575
      @mithrilsilver575 7 месяцев назад

      I don't understand, how is it working for you though? Like your not making money from it your just paying bills.

  • @keithh3099
    @keithh3099 Месяц назад +2

    Christy ,
    I have been watching your videos for months now here and there. I finally went to Navy Federal today and open a checking line of credit(Cloc). The max they give you if your not active is 3 k and I believe if your active they give you 5 k. The interest was 12 something . It was lower than my cc with them with a higher balance. Does not have anything to do with bad/ great credit as a only offer those amounts. I have to watch some more videos and down load a work sheet and see what I can do thanks.. I’ll keep you posted.❤

  • @faithsmith3650
    @faithsmith3650 4 месяца назад +3

    i had watched a couple of these vides a couple months agi nad now I finally understand what shes been saying. After coming up with many scrapsheets of plans to pay off credit card and car debt it finally hit me that her method is a good way to lower the amount of interest my credit card charges me. Thanks so much for posting these videos 😊

  • @harriettedawson7072
    @harriettedawson7072 10 месяцев назад +16

    What you're saying makes sense using a LOC. Many years ago I did not know these wisdom nuggets when I had one. Thanks for the tips!

  • @debrawarner6165
    @debrawarner6165 10 месяцев назад +10

    Im doing it. The TIP on mortgages are outrageous. 170% amortized over 30 years. 😢

  • @Shaetyler
    @Shaetyler 10 месяцев назад +16

    This is one of your best explanations yet!

  • @sabrinabradley5010
    @sabrinabradley5010 10 месяцев назад +12

    Thank you so much! I am nervous, about getting started. I see how it will work out! Thank so much Ms. V. It does.

    • @JonathanTorresjt
      @JonathanTorresjt 6 месяцев назад

      its been 3 months, how you doing on it?

  • @javiermontes905
    @javiermontes905 11 дней назад +1

    I must Master the basic!!!!

  • @KvichakSmith
    @KvichakSmith 3 месяца назад

    This is very interesting.
    Anytime I can leverage the banks money to move us forward I'm all ears. Bravo 👌

  • @margiedecker8823
    @margiedecker8823 10 месяцев назад +8

    Hi Vann thank for my daily learning.

  • @don-michealbell6303
    @don-michealbell6303 10 месяцев назад +7

    Working so hard to get a LOC. Doing debt snowball at the moment with a 5 year discharged BK.

    • @TnavresGaming
      @TnavresGaming 10 месяцев назад

      2021 Bankruptcy. I was added to a family member's (1) c/c account. In mid 2022 started adding c/c. Kept balances low or to zero. I'm currently debt free and using an LOC as checking, then paying it off.
      Another avenue to jumpstart your FICO, join a credit union (PenFed, NASAFCU, DCU or NFCU if you can). Put $300 or so dollars in a savings, then request a pledge loan (a secured loan against that $300). It #1 builds a relationship with that credit union AND they report to all 3 bureaus. Take the loan for 12 months minimum. And just make those payments on a 3.10% (average). Your money is still making some interest as you're not actually pulling that money out, it's shifted to a "locked" area, but as you pay back the loan, the money is fully "unlocked" back into your savings. But for basically $9 dollars or less, you can really boost your score.
      Fixing your FICO is a marathon (life long race), not a sprint (there is not a magic bullet quick fix).
      My current FICO is 710. Waiting for more derogatory to fall off my FICO in 2024.

  • @williamfontenot4171
    @williamfontenot4171 10 месяцев назад +11

    Can you give me some examples of where to go to get an line of credit when I have bad credit please

  • @Uncle_B_-Rad
    @Uncle_B_-Rad 8 месяцев назад +6

    Just ordered your mini-course....Thank You Christy!! (A great BIG SHOUT OUT to Chris Naugle....He recommended your channel) Enjoy your day girl!
    🙏❣🤓

    • @terryjohnson2578
      @terryjohnson2578 5 месяцев назад

      I bought the mini course and it was a total waste of money--very basic stuff about setting goals and keeping track of expenses, but nothing about velocity banking. I want my money refunded!

  • @Beyond_bank_notes
    @Beyond_bank_notes 19 дней назад +1

    What do you do when you’re done paying off the debt? Just stack cash ? Invest? What do you invest in? Use the cash flow to buy an investment property?

    • @TheGirlnurse
      @TheGirlnurse 3 дня назад

      Invest in your assets, a business, or property.

  • @alisonwells6930
    @alisonwells6930 6 месяцев назад +2

    I just watched a guy talking about velocity banking. He don't get it. Thank you !! You explain it better eventhough I don't make the money you use as an example I'm far under it only 38k a year. I had to pay off my car 1st. Then I got a credit card with 6k limit and so far I'm following my plan scared a little but I see a light at the end of the tunnel.

    • @SteveUTubesucks
      @SteveUTubesucks 5 месяцев назад

      Double-check this woman's math - she excluded the $4325/mo in recurring expenses from month 3. Debt will not be paid off in 6.5months total. It will take about a full year - exactly the same as if you'd applied the $375 in excess income directly towards the personal loan without any of this HELOC nonsense.
      This all boils down to 1) consolidating interest-accruing debts into the lowest interest accounts available, and 2) using all excess income to pay off that debt as quickly as possible. Everything else this woman says is wrong and should be disregarded.

  • @chandratolman6680
    @chandratolman6680 9 месяцев назад +14

    What if your credit score doesn’t approve you for a line of credit?

    • @shoechew
      @shoechew 8 месяцев назад

      oof

    • @sarahm-a2782
      @sarahm-a2782 7 месяцев назад +5

      If you have credit cards, you can use one of those. She explains in other videos. Be disciplined and make good changes.

    • @diswazzi1683
      @diswazzi1683 5 месяцев назад +2

      Using this method with any credit card will raise your credit score in a matter of months so that you can get a PLOC

    • @HuskyRuski
      @HuskyRuski 20 дней назад

      Get a 500 dollar personal loan to hold on to and give it back on time. This should raise your credit. But usually there's at least one credit company that will qualify you for a LOC with low credit otherwise you'd be stuck with low credit forever and that would be a human right violation 😂

  • @abmi4259
    @abmi4259 7 месяцев назад +5

    I still kind of struggle with this concept, I'm trying it out as I'm 35k in credit card debt

  • @LOVETOBEWITHYOU60
    @LOVETOBEWITHYOU60 10 месяцев назад +4

    This is great information but PLC are hard to get if you can even find a bank/credit union that offers it.

    • @rn6542
      @rn6542 9 месяцев назад

      Where can you get a PLC?

  • @fall3n245
    @fall3n245 4 месяца назад +1

    How do you calculate the monthly interest bill? And could you do this to pay off a mortgage?

  • @JLH1956
    @JLH1956 10 месяцев назад +5

    The only debt I have is my mortgage. Would a line of credit help pay it off faster over just making extra payments to my principal?

  • @767driver
    @767driver 2 месяца назад +1

    Is there a good way of doing this using the cash value in a whole life policy through policy loans?

  • @Sh-nx7nq
    @Sh-nx7nq 7 месяцев назад +2

    Thank you so much for your videos! Because of your training I got a heloc - the only problem is, I have to go in and manually move my money from the heloc to the checking account- they do not automatically connect the two. Any suggestions on what to do? God bless!

  • @missioncalming7172
    @missioncalming7172 20 дней назад +1

    what should I do if I've maxed out my PLOC? Should I continue to make bi-weekly paycheck payments?

  • @holhausdotcom1519
    @holhausdotcom1519 10 месяцев назад +5

    I had a LOC yeeeears ago in my late 20s and I was so confused on how they worked I ruined it and have stayed away ever since. Christy your explanation is really good and has me wonder could you take a LOC and use it toward paying just the principle payments on a home? Or would you have to use a HELOC? Trying to understand the difference.
    Thank you for your work and love the accent!

    • @debrawarner6165
      @debrawarner6165 10 месяцев назад +6

      I'm not Chrissy but I have been applying this to my mortgage balance and will have it paid off in two years. I use a loc as a checking account now. I'm down 78g from January 2023.

  • @jessicat7245
    @jessicat7245 10 месяцев назад +7

    I would redo this video and, in the very beginning, explain daily interest v. APR, and what a LOC is briefly. I could only follow this video, and not as well as I would like, because I watched some of your other videos. It also wouldn't hurt to use different color markers. It would be a less intimidating thumbnail, and help visual people to follow. -Thanks for the videos.

    • @mygoodlife204
      @mygoodlife204 10 месяцев назад

      Also show the cashflow amount and how it increases every month

    • @critiqueculture
      @critiqueculture 10 месяцев назад

      Agreed 🎉

    • @VanntasticFinances
      @VanntasticFinances  10 месяцев назад +3

      Or …you could start your own channel and do it better 😃

    • @critiqueculture
      @critiqueculture 10 месяцев назад

      @@VanntasticFinances Such a sly comment, this was not necessary. This is how not to take criticism. The video was ok, however you could do it better for your audience.

    • @jessicat7245
      @jessicat7245 10 месяцев назад

      @@VanntasticFinances except I don't know how to do this and I am asking for your help to better understand how to do this.

  • @KilaAdams
    @KilaAdams 10 месяцев назад +2

    Hi Van! Thank you!

  • @rickrgarza
    @rickrgarza 9 месяцев назад +2

    Hello Van, I would like to understand this more I don't quite know what you mean I'm watching your videos over and over where can I find more context on this?

  • @FromG2eminor
    @FromG2eminor 10 месяцев назад +4

    I just got started this week. It makes so much sense. I just got a PLOC that equally paid off a loan. I want to use it to pay off my car. I also have a maxed out CC around 3,600. Should i focus mostly on paying off my car using my PLOC as the primary credit line or focus on paying off the CC? (Still put some expenses on it. My car payments are $800 per month. 😬 Thank you!!

    • @teresagolden2075
      @teresagolden2075 10 месяцев назад

      I am wondering the same thing. Glad you asked her. :)

    • @louiseyvette2261
      @louiseyvette2261 10 месяцев назад +5

      I would focus on whichever option gives you the greater cash flow. Sounds to me like the car might be the better option.

    • @nmsauditor1a950
      @nmsauditor1a950 9 месяцев назад +3

      I would tackle the small one first and this is why. You will obviously pay it off faster and gain the additional cash flow. Most importantly though, you will reap the reward of getting rid of the debt and for me anyway it drives me to continue.

    • @FromG2eminor
      @FromG2eminor 9 месяцев назад

      @@nmsauditor1a950 Yep, I will be doing that. Focusing on the cash flow. Helps a lot.

  • @XRPeakyBlindAR
    @XRPeakyBlindAR 8 месяцев назад +2

    Is there an advantage to utilizing this concept of one doesn’t have any outstanding loans or debt? Or is it smarter to simply use a checking account. Is this a tool simply for debt relief. ?

    • @sarahm-a2782
      @sarahm-a2782 7 месяцев назад

      Maybe for a credit score boost?

    • @user-cz1gu8nl9o
      @user-cz1gu8nl9o 5 месяцев назад +1

      If you don't have loans the only way this makes sense to do is if you want to start buying assets that make you money, but they have to have a higher return on investment than the interest you are paying and have cash flow.

  • @quenessyomy6924
    @quenessyomy6924 9 месяцев назад +2

    GIIIIRL WHERE HAVE I BEEN😮❤🎉💲

  • @shiscarp
    @shiscarp 8 месяцев назад +3

    Does there need to be some form of bad debt in order for a line of credit to make sense?
    We have one car payment at 0 percent, mortgage at 2.75 percent, student loan at 3.6 percent and that’s it. We pay off credit card in full every month so no interest there.
    I have looked at a few videos and all of them have some kind of high interest debt.

    • @user-cz1gu8nl9o
      @user-cz1gu8nl9o 5 месяцев назад +1

      The way your interest isnstructured on the mortgage takes more money from you than the line of credit because of how it is structured.

  • @worldwidewheels
    @worldwidewheels 9 месяцев назад +2

    What if most of the expenses are things you can’t charge on credit cards? Personal loans, auto loans and credit cards…

  • @Magnificent_M
    @Magnificent_M Месяц назад

    This may have been answered already. On the first example...after putting the loan into the loc,what are you to do with the 500 that you are no longer paying on the loan

  • @gmj2025
    @gmj2025 10 месяцев назад +3

    Hiiii Vann lady!

  • @jorgeguerrero6206
    @jorgeguerrero6206 9 месяцев назад +2

    How do I use this plan with multiple credit cards ? Just screw my credit and use one card at a time until I have one by one paid off??

    • @VanntasticFinances
      @VanntasticFinances  9 месяцев назад

      ruclips.net/video/AlwPHOaZ_B0/видео.htmlsi=OxJw0z0PKHhX3oJC

  • @islanddreams99
    @islanddreams99 9 месяцев назад +1

    This Is VANNtastic! What is the best way to obtain a line of credit?

  • @trustedoverview
    @trustedoverview 7 месяцев назад +1

    Help, my phone, auto insurance, life insurance, other cards, rent, utility companies, and several other creditors - all of a sudden will not allow me to pay with my credit cards. They want routing and bank account numbers. This is messing up my Velocity.

  • @NewStyle_xtremedetailing
    @NewStyle_xtremedetailing 7 месяцев назад +2

    Hello, where can I get the LOC? And what happens if I'm a self-employed? Thanks

    • @KatJaguar1122
      @KatJaguar1122 6 месяцев назад +2

      FYI, “Mike the credit guy” on RUclips says don’t ever put “self employed “ on a credit app. He says put employed and say you’re in management.

  • @jenniferglasgow1610
    @jenniferglasgow1610 17 дней назад

    How do you time when your paycheck deposits and when the bank looks at the balance and determines what you pay interest on? I hope this makes sense.

  • @mirandahatch2560
    @mirandahatch2560 10 месяцев назад +4

    Which banks link checking account to LOC like an overdraft with no fees? I’m having trouble finding one. Thank you!

    • @VanntasticFinances
      @VanntasticFinances  10 месяцев назад +3

      MANY! Keep looking in your area. @mirandahatch2560

    • @aaronjennings8385
      @aaronjennings8385 2 месяца назад

      Over draft line of credit (odploc) will automatically cover overdrafts, means that one can pay every penny into paying it off without penalties. Just set that up with the line of credit.

  • @TraumaChaplain
    @TraumaChaplain 9 месяцев назад +1

    I'll have to look at the comments again as I didn't see it but my question is because they run your credit history when you open accounts, should you try to get a home line of credit or personal line of credit first?

    • @KathieCiottiAllgood
      @KathieCiottiAllgood 5 месяцев назад +1

      A PLOC undersecured, will typically be a higher interest rate than HELOC. You need to be sure that when you’re using the HELOC for payments such that you aren’t getting charged for withdrawal. The bank that I worked with used to charge per withdrawal. Be very careful of that.

  • @GamersClipsinfinity
    @GamersClipsinfinity 15 дней назад

    So jabe i got this right,
    If you have debt of 10k...
    You get a credit card, use the credit card to pay off the debt, then use your income to oay off the credit card, use the credit card for all your expenses. Once you get paid again, you pay off the remainder of that credit card, then use that credit card to pay for expenses. Repeat until credit card has been paid off.
    Is this correct?
    Now what if your mortgage is 5% interest rate and your loan or credit card is 19% (because thats probably the average these days) hlw would a credit card with 19% help pay off a mortgage of 5%?

  • @kd2mill
    @kd2mill 10 месяцев назад +3

    I have 90% of my monthly expenses on automatic draft. Is it possible to continue automatic draft through my line of credit without alerting my creditors?

  • @critiqueculture
    @critiqueculture 10 месяцев назад +2

    Thank you for this video, how do I go about getting a line of credit?

  • @CarlosHernandez-fg4qn
    @CarlosHernandez-fg4qn 8 месяцев назад +2

    Can you use a home equity line of credit to apply this method to pay of debts?

    • @stuckmoto
      @stuckmoto 7 месяцев назад

      YES! she covers that in other videos. One down side is it's secured against your home vs. unsecured PLOC.

  • @Gray_Day_Flower_Farm
    @Gray_Day_Flower_Farm 9 месяцев назад +1

    I tried to get a LOC but they called it a HELOC but it was a fixed rate loans and you can’t use the money. It’s only payout for debt. How do I get an actual HELOC?

  • @Sifa85
    @Sifa85 9 месяцев назад +2

    What if you don't have any debt, except a mortgage, would this still be applicable?

    • @adanam6377
      @adanam6377 8 месяцев назад +1

      Yes, use it to pay down your mortgage faster. Sam process. Take monthly expenses + additional mortage out of LOC pay those once your pays hit your checking account. There must be some positive cash flow every month. Keep repeating until mortgage paid off and eventually the LOC is back to 0 balance.

  • @latoyamunroe580
    @latoyamunroe580 6 месяцев назад

    I am excited and nervous at the same time. My question is, how would this work with 4 credit cards with 2800 balances that are almost to the limit?

  • @gracewhite7827
    @gracewhite7827 10 месяцев назад +2

    Where can I obtain a line of credit with bad credit?

  • @devellwilson7099
    @devellwilson7099 19 дней назад

    If you understand the process, you will be golden with some discipline.

  • @dake9102
    @dake9102 8 месяцев назад +1

    I was approved for a line of credit today for just $4300 but there's cash advance fees of 5-10%

    • @diswazzi1683
      @diswazzi1683 5 месяцев назад

      You should have brought your credit score up higher by using this method with a credit card, that way you could have gotten a way higher offer than 4300

  • @zxnuc
    @zxnuc 10 месяцев назад +3

    I have a $70,000 heloc balance with 8% as of now and also a house mortgage balance of $48,000 at 3.25 % interest. Which one should I tackle first in order to save interest? Thank you

    • @sarahm-a2782
      @sarahm-a2782 7 месяцев назад

      Would it obvious to say the HELOC should be tackled first...

    • @user-cz1gu8nl9o
      @user-cz1gu8nl9o 5 месяцев назад +1

      Velocity banking uses the line of credit to pay down chunks of the mortgage, because even though the interest looks higher on the line of credit it will acfually save you money compared to the mortgage because of the way it is structured.

  • @sunsetson2209
    @sunsetson2209 9 месяцев назад +1

    Hi great channel! Q: you may have already been asked but here goes, if people use LOC to pay expenses, debts, the bank loses money with your suggested system, and they don't care? Are there any consequences from the banks using your system to our advantage? Thks, Al

    • @VanntasticFinances
      @VanntasticFinances  9 месяцев назад +5

      @sunsetson2209 I don’t care if they care or not. Most ppl can be in control of their debt within a few weeks/months. Can’t worry about the “what ifs”. Get in control NOW so IF the “what ifs” occur, then it won’t effect you. 🙂

    • @sunsetson2209
      @sunsetson2209 9 месяцев назад

      @VanntasticFinances ok, look up "school of personal finances " on YT re velocity banking, he presents and comments about VB by YTubers..."the truth about paying off your mortgage faster" , id be interested in your reaction, I'm still on the fence

    • @kreatingkings7659
      @kreatingkings7659 8 месяцев назад

      yep - his stuff will pop up as well, but remember in order to get people to click on your vids (make money) you need an edge or something controversial - he actually uses a similar method
      @@sunsetson2209

  • @DadInFastForward
    @DadInFastForward 2 месяца назад

    ok, i see. Velocity banking is designed for increasing cash flow? Is that correct?

  • @cjmayo2525
    @cjmayo2525 8 месяцев назад +1

    How do you pay your mortgage with an LOC monthly? My lender doesn’t allow that I don’t think. This is the only part of velocity banking I’m still trying to figure out as it only makes sense if all expenses come out of the LOC from what I understand.

    • @VanntasticFinances
      @VanntasticFinances  8 месяцев назад +2

      @cjmayo2525 Your LOC is YOUR business, not your lenders. You’re just paying bills, then refunding the source with your income.

  • @JHowardVA
    @JHowardVA 9 месяцев назад +2

    Hi so are you saying that the personal line of credit will pay off in 6 months? If so, when it does do you keep putting your paycheck into it? Or do yo have it deposited back in to checking or where ever else you want to place the deposit?

  • @danielwebster7030
    @danielwebster7030 Месяц назад

    Vann, doesn't the same thing apply when I use my own checking account and debit card? I get it that a a LOC pays a bill off quicker. But, what crops up for me is RISK. With a LOC, if the unthinkable happens; loss of income, then what? With my own checking acct, I owe only what I still owe on, not a bank.

  • @jennifershort1898
    @jennifershort1898 12 дней назад

    What if your HELOC has a 250 dollar minimum on expenditures? How do you get it to pay for a small subscription, for example?

  • @beulahreed1634
    @beulahreed1634 9 месяцев назад +1

    New to the channel & you really have my interest on this approach. My only question, will it be wise to transfer a personal loan from my credit union to my 0 interest credit card with a 132.00 transfer fee. I only owe 2500 & paying more than the 150.00 a mth due with an interest rate of 11.75%

    • @KathieCiottiAllgood
      @KathieCiottiAllgood 5 месяцев назад +1

      It’s a good idea only if you calculate how much to pay each month to pay it off before the interest hits (the 0 percent promo expires)

  • @doramoritz7849
    @doramoritz7849 8 месяцев назад +1

    Can you pay off a personal loan with a c.c. as your line of credit? The company will only accept checking account information for payoff on their website.

  • @stevenwagner4790
    @stevenwagner4790 8 месяцев назад +1

    Great advice, hard for someone like me to understand but seams good.
    I have a question if you could help.
    I only have a house payment of around 1200 a month and a land payment of about 1200 a month, a boat payment that my VA disability pays for. Normal bills, groceries, power... no car payments. What is the best way to pay off my land payment??

  • @Danielle-kn3qg
    @Danielle-kn3qg 10 месяцев назад +2

    I just closed on a new ho east week. How soon should I wait before using a LOC to pay my mortgage?

    • @VanntasticFinances
      @VanntasticFinances  10 месяцев назад +1

      Don’t wait, if you have equity…or move into First Lien HELOC. @Danielle-kn3qg Go here 👉flhambassador.com/christyvann/

    • @bertturner7128
      @bertturner7128 10 месяцев назад

      I’m not sure if I understand the difference between a HELOC and a 1st Lien HELOC. I have a HELOC, but not sure if it’s what you’re referring to as a 1st lien.

  • @stephaniestephens37
    @stephaniestephens37 Месяц назад

    Wouldn’t it be better to direct deposit the funds from the employer to your line of credit? Idk if that can happen.

  • @VictorS20033
    @VictorS20033 3 месяца назад

    Do you believe in having an emergency fund, or do you just have your line of credit?

  • @bctloaded985
    @bctloaded985 10 месяцев назад +2

    What apps allow you to pay your mortgage from your credit card again? Plastiq was one, and I think you mentioned one more a while ago, just couldn't find the video again.

  • @candyluna2929
    @candyluna2929 8 месяцев назад +1

    So the credit card you use has a debt already or you can use a credit that is without any debts on itm

    • @Jesus-kt5dc
      @Jesus-kt5dc 7 месяцев назад

      You need debt, cash flow, LOC to do velocity banking. So you can have debt already or doing a principal payment towards a loan.

  • @princeg6864
    @princeg6864 День назад

    What are some of the good banks for HELOC

  • @trellmix95
    @trellmix95 2 месяца назад

    Heloc loans and lines of credit are hard to come by. Does anyone know what companies still offer these types of loans?

  • @ms-behaving
    @ms-behaving 8 месяцев назад +1

    Can you use a credit card as a line of credit?

    • @Jesus-kt5dc
      @Jesus-kt5dc 7 месяцев назад +1

      Yes, with some restrictions.

  • @justjess7773
    @justjess7773 5 месяцев назад

    What if someone has bad credit and can't get a credit card limit big enough to cover their expenses? How can they implement this technique?

  • @jerryr.6908
    @jerryr.6908 Месяц назад

    Are we paying interest on the expenses through the line of credit?

  • @roxpar1816
    @roxpar1816 2 месяца назад

    Looking for advice, please. Our income is ~$6000/month, we owe $58,500 on a Line of Credit and $7000 on a credit card (promotional interest rate of 7.99% right now), what should I start doing? There is very little room left on the loc.

  • @jesusislife345
    @jesusislife345 10 месяцев назад +1

    Hello! I opened. Loc with my credit union but I don’t have. Debit card or checking account linked to it. I don’t know how to use it to pay off my car. Any suggestions?

  • @mwh82108
    @mwh82108 9 месяцев назад +1

    hello dear so smart you are! so i make disability ssdi and want to buy a car somehow, my cash flow is about 600 a mth after bills i make 1100 a mth poverty pay for serving my country lol. disabled vet. have no clue how to een start where to go what to say and ask for. have blessed day

  • @c.parker8439
    @c.parker8439 10 месяцев назад +2

    Hi 👋🏾. Many ppl said their LOC increased instead of decreasing the balance. So, I don't fall into this pity fall. What could be the reason for the increase? Thanks and Good luck

    • @BG_T-Lock
      @BG_T-Lock 10 месяцев назад +5

      Ask that person to show you their numbers so you can see where the problem is. If they won’t do that, ignore their comments because this is math not a hat trick.

    • @VanntasticFinances
      @VanntasticFinances  10 месяцев назад +2

      @@BG_T-Lock Exactly. Thank you

  • @marcc922
    @marcc922 5 месяцев назад

    How are you getting $75 interest charge? If you average like you said, (10,000+4800)/2=7400 and then factor 12% of 7400, the result is $888. Even if you were to take 10,000-4800=5200 and factor 12% of 5200, you get $624. 12% of 625 is $75.

    • @SteveUTubesucks
      @SteveUTubesucks 5 месяцев назад

      The 12% is an *annual* rate, so the interest that accrues *monthly* is approximately 1/12th of the annual rate.
      IE, $888 annual interest divided by 12 = $74 per month in interest.

    • @marcc922
      @marcc922 5 месяцев назад

      @@SteveUTubesucks Thanks!

  • @ygbodybuilder3023
    @ygbodybuilder3023 Месяц назад

    What about this. my line of credit is 19% my credit card interest rate is 31% can I use my line of credit to pay off credit card

  • @dashingmay
    @dashingmay 2 дня назад

    Can i do this with a personal loan as well?

  • @sdbrown6560
    @sdbrown6560 2 месяца назад

    I've stumbled upon your channel and need a little help. I have a 1st HLOC used to make repairs insurance denied. Can I still somehow implement this strategy to get it and my mortgage paid off quickly?? If so how would you suggest I go about that?

  • @elderfogelderfog3598
    @elderfogelderfog3598 8 месяцев назад +1

    I've called serval banks and credit unions they have no clue what a peloc personnel line of credit is how do i get one

    • @KathieCiottiAllgood
      @KathieCiottiAllgood 5 месяцев назад

      These are rare products. I’m the bank world we call them personal lines of credit

    • @KathieCiottiAllgood
      @KathieCiottiAllgood 5 месяцев назад

      These are rare products. I’m the bank world we call them personal lines of credit

  • @ammodawg4587
    @ammodawg4587 10 месяцев назад +1

    What if you can’t get a LOC?

  • @user-bv3pk5hx8s
    @user-bv3pk5hx8s 6 месяцев назад

    I have a heloc that I can only draw on. No card or checks and can’t be linked to checking. Please demonstrate how I can use this. ❤

  • @cherihector7633
    @cherihector7633 9 месяцев назад +1

    How do I get a line of credit

  • @melaniebernard3688
    @melaniebernard3688 8 месяцев назад +5

    I think I need the dummies version of this explanation. I’ve watched many of your videos trying to understand but I do not understand this at all.

    • @josecasas1807
      @josecasas1807 2 месяца назад

      What part don’t you understand? Maybe I can help

  • @kaniasherice1812
    @kaniasherice1812 9 месяцев назад +1

    @vanntasticfinances what if your car loan payment can only be made with checking or savings account?
    I have my LOC and car loan Wells Fargo.

  • @NicholasHendley
    @NicholasHendley 6 месяцев назад

    Not sure where to comment this, but I'd love to see you make a video about what percentage should we look for in a line of credit? I know the lower the better, but when I inquired about a PLOC at my credit union, they said the current rate is around 14% (around 16FEB2024). Is there a break even point? The person at the credit union talked me off the line but I still wonder. That 14% seemed scary

    • @acf3727
      @acf3727 5 месяцев назад

      Maybe shop around at different banks

  • @kaylaschregardus4062
    @kaylaschregardus4062 9 месяцев назад +1

    So when it comes to paying expenses i.e. rent, loans you use that same credit card not your debit card/checking account? My car loan I pay through digital banking but it has its own account, so I would use my LOC to pay for that payment as well?

    • @stuckmoto
      @stuckmoto 7 месяцев назад

      Everything ( if it is possible ) goes on to the credit card/PLOC... then your income goes back into it

  • @bobw5502
    @bobw5502 3 месяца назад

    little information. some of the credit card companies are raising there interest rates up to 35.99%.

  • @KatJaguar1122
    @KatJaguar1122 6 месяцев назад

    Okay Great.
    Now I just need to know what the best bank is for getting the best line of credit for the lowest credit score. I am working on improving my credit score but would still be good to know this.
    Perhaps the answer may lie in the materials I have just downloaded from your links.

  • @BarbaraCameron-c3x
    @BarbaraCameron-c3x 11 дней назад

    My bank will not allow me to pay my bills through my line of credit

  • @casadecal
    @casadecal 7 месяцев назад +1

    Do you make the payment to the principle or as a regular payment?

    • @KatJaguar1122
      @KatJaguar1122 6 месяцев назад

      In this example, the LOC was used to pay off the 10k loan in full. The best deal would be to pay the least amount that the lender will accept for the balance to be paid in full.

  • @dougpaquette9518
    @dougpaquette9518 4 месяца назад

    How do you use a line of credit as your checking account

  • @andreahavens5149
    @andreahavens5149 10 месяцев назад +1

    What if all your credit cards are at zero percent interest? Would I want a LOC w interest still? Doesn’t make sense to me.

    • @user-cz1gu8nl9o
      @user-cz1gu8nl9o 5 месяцев назад

      If you cc is at 0% it is better to use that. She has a video on how to use your cc for this.

  • @tyjohnson7913
    @tyjohnson7913 Месяц назад

    Im still confused 😫🤦🏽‍♂️ soooo i have a PLOC its only for 1000 and i have a 13000 PL.... so what do i do pay the PLOC 1000 a month and then you use the PLOC 1000 to make the payment on the PL?