Christy when you said the expenses could be $1500 or $11k. I remember my grandmother saying, "The more you make the more you spend". I never thought it possible until I went from making 30k a year to 81k. For some reason we were living paycheck to paycheck at 30k a year. At 81k we were still living paycheck to paycheck, lol. We moved into a better house, better cars, and credit cards. My grandmother's old saying was true and we fell right into the trap.
Yep. Expenses often follow the income trajectory. It’s not how much you make. It’s how much you keep. This Joyce Meyer looking banker lady has me pumped to learn more!!! Holly crap! They should teach this in school
We all have fallen into the trap, I don't know why we increase our expenses instead of just finding a comfortable living and enjoy the freedom of having money and being debt free...😬😖 but its probably by design 🤔 but I'm trying to change
@@colbybailey1983 feels almost like we are programmed to level up and tell ourselves we deserve it for working hard for it. The higher the ladder the harder we fall unfortunately.
I watched an older video of yours last night,all through the night i couldn’t sleep,my brain was in over drive as i couldnt understand. Woke up this morning,watched this video and now i understand. This is pure GOLD
Thank you so much! I’m getting all my expenses in order as we speak and go from there. I will do my best to go through all your videos for answers I know God put you in my path, thank you 🙏
This is my 2nd time watching your video and its making more sense. The only issue I see for myself with making this work is discipline. Not spending beyond that $700 seems to be key for this to work.
It requires a disciplined budget no matter how you tackle it. Dave Ramsey, Suzi O, random guru, snowball method, avalanche method, velocity banking. What laser-focused me was the idea of moving from having any debt to leveraging FICO for assets (even if the assets were all in 5% annual cds).
It's interesting because I had no idea you could do this. When I started to build my credit. At the time I had a goal to become a home owner in 2 years. I had no credit. So I got a captiol one card at a 200 dollar max limit. And I used it weekly to buy my groceries. I paid it off in full. Every week. I've never even to this day have paid any interest on my Capitol one. And by my surprise my credit boomed!! At the 2 year mark. I got a credit check through my bank and I had over 800 credit score on 2 and a 790 on the third. So I was able to get under 3% interest on a 30yr fixed. So if anyone needs to build credit and fast do what I did. But hold off to buy a house in this market.
In this example, velocity banking doesn’t make a difference, other than lowering the interest charges for the month just a bit. After month one, the balance is 9400, which is what it would be if you didn’t use VB at all.
I’m grateful to see a comment like this. I can’t see how the method improves cash flow, since now we have to use the credit card, and before we had the flexibility of using cash. I’ve been feeling silly for not understanding this part. as for the interest saved, comparing this method with my own debt spreadsheet, I can only see pretty small changes to the interest owed. maybe it’s more and I’m making a mistake predicting interest based on the avg daily balance.
Well, not only does doing it like this lower your interest....but putting the money in the card first counts as your monthly payment! So if you had a $600 monthly payment due on that card, that is now $600 more a month in cash flow that you can use for something else. HTH! This is brilliant 👏
Your missing the credit card payment. If the payement is around $400 you no longer have to make that payment because your paying more then the payment amount each month. So now instead of making no progress you are paying down $400 each month on your credit card. Say you have 2 credit cards. The second has $1500 on it. And the payment is $70 a month, after 4 months of just paying your bills using your credit card you will have enough to pay that credit card off with the other one. Which opens up a cash flow of $70. Now you can pay $470 each month with no difference in your costs. So lets say you do that for another 2 months, your credit card balance that started at $10000 is now $9200 and thats after paying off your other $1500 credit card. But this month your car breaks badly need fixing, now you have $800 you can use to pay for your breaks. And have paid down $1500 in debt. Wheras before there was 0 hope, 0 leway, if you needed new breaks youd have been taking out another credit card. Which you would have had to figure out how to pay when you already had 0 left over. So with 0 extra cash flow youve paid off 1500 in debt and didnt need to go farther into debt. You will have to account for interest it would be less then that being paid down each month, but i simplified it to try and make it make more sense. But your card would likely only be going down like $300 each month. But still a significant improvment.
@@lizzsmith7126you have to account for the credit card payment. At first that is what is paying off your credit card. If your payment is $400 it will be payed when you put in your paycheck. Which means you dont actually have to pay that $400 and it will pay your credit card down $400 each month with no extra money going into the card.
@@Ginger_McElfresh_Art It doesn't actually give you "extra" cashflow. It's equivalent to paying the $600 payment, and then using that available balance to spend on something else. It's the same either way. Like I said before, after one month, the balance is $9400, no matter which way you describe it. Note that I fully believe in VB, and I'm using myself with a first lien heloc. But the point where the velocity comes in is when you already have extra cash flow to pay down the balance more than just what the minimum payment would be.
I think you've been sent from heaven. Best advice ever. I wish I'd seen this when I was paying off my mortgage years ago. We kept adding money to the principle with a second job and putting kids in daycare. This is so much better. Blessings to you.
Why not drop off golf fees, membership, subscriptions and take that money and slap towards the credit card plus pay the regular amount, eliminate the credit card debt and stay away from credit cards, vs creating new debt
Cha-ching ! The light bulb flipped on about a week ago. My only regret is I didn't know about this 30 years ago ! Blessings to you, Christy....Vanntastic!! LOL
It might be helpful to add a video that explains how to pay monthly expenses with a card that’s literally maxed out. You mentioned that the card is at its limit - no room left to pay those expenses. So, how do you start paying them on the card? Almost seems like you’d need one month of payments ahead, pay to the cc, then start paying them on the cc?
Exactly, confusing how explained bcuz the example given couldn’t happen unless your credit card company allowed you to go over your maximum limit which would add a lot more over the limit fees.
@carlascreativefix3248 not with ya putting your monthly expenses amount onto your credit card and that brings the owed amount down that much as you put on the card then you put your expenses onto the card so your card can pay them and that leaves your whole amount that you paid on your credit card payment without the credit card company taking the interest out of your monthly payment your card shows the whole amount of your monthly payment is still on the card and that gives you that whole amount to the good to spend if ya so wish to.
Worked up all my figures and just started. Couldn’t get a heloc or ploc just yet. I’m working with a credit card. Starting off with paying off a 10,000 loan, then I’ll hit my truck loan of $36,000. I figure I’ll only have my mortgage payment after 18 months. Then I’ll attack that. Thank you
I started my journey with your system one month ago. I'm going to keep watching your videos Period thank you so much for sharing. I appreciate how clear you explain things.
The $600 payment does not become cash flow, because the credit card is not paid in full. The payment might go down a bit, but there is still a payment due on the balance. Unless I’m missing something…
You are 100% correct and you are NOT missing the point. In this example, the lower interest rate becomes your “cash flow”, which should help pay off the credit card faster, which would eventually become more substantial and literal cash flow
I see so in this case when she says the interest may come down from 240 to maybe 210 that $30 is the gain you get? Then it will increase a bit each month?
This is great advice. The only issue is a credit card that doesn’t give you credit for payments right away. I have one that takes 3 days to credit a small payment of $50.
If you know it takes three days and you get paid on the same day… make the payment three days before and it posts the day you get paid.. I do it this way
I wish I could put my monthly income in one shot like the examples, but can only do bi-weekly income transfers. Makes the process seam longer, but regardless I’m grateful for this new found knowledge!! P.s. Merry Christmas to you and yours from Canada ☃️❤️
I’m going to say that most will never be able to follow this plan, because they won’t be able to stick with only spending $700 per month limit on their credit card. How did they run it up to 10k (maxed out) to begin with ? By using it for “expenses” they didn’t have the income for.
Yes that is the issue. It will still take self denial, which is the hard part. But the extra paid off will give leway for small extra expendatures or if you have an emergency you will have funds after a few months to pay for that without goinf farther into debt then you already had been. But self control and self denial and a desire to do what it takes to be free from debt is the only way youll flget out of it. Its a good way to help, makes that money work for you more at least.
Agreed. This method would only work if you’re extremely dedicated to being on a budget until the debt is paid off. If not, you dare not try this or you’ll find yourself in a bigger hole than when you started 🤷🏽♀️
I’m going to try this when I get paid. It makes so much sense but I am very nervous about not having cash in my hand. But it has to feel so better to lower my debt
Same here but i have a credit card with a balance of $3800 that i can’t seem to bring down the balance and just to think about adding more to the balance makes me nervous that I won’t be able to pay it off but they just raised my limit from $6000 to $9800 so I think I’ll be good.
Hello Christy, I’m missing the boat on this one. The credit card is $10,000 and I’m paying $1,300 so I understand that the payment is satisfying the minimum payment due but you wouldn’t have a balance of $8,700 it would be $8,942 because you still have to pay that $242 in interest to the bank correct?
Hi Christy! I’m on social security disability. But I just set up my State Farm account (house/car/life) to be paid from a Visa card that is linked to State Farm and my bank account. So when I get my money deposited each month then I’ll just transfer it to the Visa card and then it will pay the insurance at the end of the month. I’m hoping to get that card paid down. So I’ll let you know in a couple months how it’s doing! Thanks for your help! God bless!
@@malzimusit’s been fine. I just wish there was someone to help with the other two credit cards and HELOC I have. But my credit score isn’t as good as it was either
You may have answered this already. Did you start the process with a credit card that had a maxed out balance of 10,000? What was the starting balance of the credit card you are going to use as a Debt Tool? Could you do a video when ALL of your credit cards are MAXED OUT from the start? Thank you.
This is the example of a maxed out card. Take the $600 normal payment and the amount of the bills you intend to pay with the card and pay it first to the maxed out card. In this case that totals $1300, $600 plus $700. In this example, the card is maxed at $10k. She pays in $1300 to it, over the month she pays the $700 back out to bills, and is left with a new balance of $9400. Let me know if I can help further.
@@nmsauditor1a950 yes help me understand. Wouldn’t you have the card down to $9,400 if you had just paid your original fee of $600? If no, why not? 10,000-600=9,400.
All of this makes sense on having to use it as a checking to bring down the interest the one thing that I can’t wrap my brain around is why we keep saying that eliminates the $600 payment? You’re still making the payment so I’m not sure why we are saying it satisfies the payment we’re paying the 1300 into there which includes the 600 but the only thing I don’t understand every time and it says eliminates the monthly payment
@@annaholzner8711I don’t understand that part either because if you pay the $700 in bills, then the card will have been reduced by only $600 minus whatever the interest will be for than month. It’s not cash flow. I keep running the numbers and watching videos…this helps you lower the interest each month, while paying down the card. Which in turn helps your bill get paid down a little quicker.
I get paid bi-monthly. My first biweekly income covers my checking account loans- car loans, student loans, mortgage, etc. with $200 left over. My 2nd biweekly income covers my credit cards that could cover the rest of my living expenses. I just picked up a 2nd job, and have not yet caught up on past-due bills. I am confused at what to live on, while I am catching up.....
This definitely works, starting my second month. The only concern is what if the CC company lower your credit limit? Which they can do, and you put your money into a card, then cannot charge up the expenses? Playing Devil’s advocate, thinking. Again, this technique saving interest definitely works. I’m a few thousand near my limit, so, doubt they would spontaneously lower it. However, it did happen years ago for some reason. Anyway, thanks for your channel. 😊
I Love what you are doing and the way you are breaking it down. I learned this back in 2017, so I got a HELOC of $300,000 for 15 years, fast forward today and I'm totally Debt free, own several properties, and Offset the $300,000 line of credit, ready to get another one Just because I can.. If You would like to talk privately and maybe learn what I've learned, I'd glady direct you so you can add it to your arsenal and maybe teach it to your community. Keep up the good work!
Thank you for being a willing vessel. You’ll never be empty. I have question please? Is there a specific time we should make that payment on the credit card when using it this way??? Statement dates vs due dates??? Bills first or Money first? Thank you
Thank you so very much for sharing this valuable financial information. I'm going to begin using it immediately & am looking forward to eliminating debt.
The problem I’ve ran into is with a maxed out credit card is you put your income that will pay your bills on the card to bring it down but once you pay your bills you’re back to maxed out and then the interest fee shows up and pushes you over your credit limit and now you’re in the red and have a hole to dig out of the next month because you now have to pay extra… Am I missing something?
That's my problem also. She doesn't mention that you have to add the interest to your bill when making a payment which eats your cash flow. Molly tells you this if you're close to being maxed out- like me due to low income in winter months. Just starting to get back on the program. Good luck 🍀
Yeah..right now I'm only putting bills onto cards that will not go over limit once interest hits and works with my check, due dates and statement dates. I also have those bills and my cc payments in the budget. I'm just going to have more transactions and payments than I have in the past and I hope it will be like my student loans- paying multiple times a month cuts into the daily interest accrual. I realise CC are different than student loans but this is the only way I feel comfortable trying to make a change with my payments currently. I don't think I could throw *every* dollar onto CC at the beginning of the month in good conscience.
When you put your paycheck in it pays the payment for your credit card. Say your credit card payment is $400 each month. That means you now have $400 less expenditure each month. Because you no longer have to pay $400 for your credit card since your paycheck already paid it. That means that the credit card will go down $400 each month ( minus the interest, lets say $100) so after the first month without paying any extra, what you owe on your credit card will be $ 300 ( payment minus the interest) less then it was the month before. And that will continue to happen, as your interest lowers also each month because you owe less on your card.
Hello! Just came across your video & im definitely listening. My only question is what if we are paid biweekly & cannot put the funds into the credit card at one time? Thank you so much for all the information !!
I did know grocery stores take a credit card for payment for groceries. A few years back I tried paying with cc and they would not let me pay with cc for the groceries.
I like this way thank you.....a certain motorcycle company issued me a credit card to put accessories on the bike. Yes I wasn't disciplined and maxed it out! But you do earn points /cash back for using it, so why not use it for this method and get an incentive while paying bills?
Not to mention put it on a credit card that earns cash back rewards for this purchases.. like 5% cash back on gas and groceries and 6% cash back on subscriptions. You will actually save even more money..
10,000 + 700 expenses = 10,700.. .most CC companies woudn't let you go over your max. but - > 10,700 - 1,300 = 9,400. month 2. 10,100 - 1,300 = 8,800. month 3.. 8,200.... etc etc... this would work if card wasn't maxed out.
What? You're not paying the expenses with the credit card until after you transfer your paycheck. You start with a balance of $10,000. Transfer your check, and your balance drops immediately to $8700. Making $700 in purchases at that point does not take to you over the limit.
This sounds like a fantastic plan. I have about 11K over 2 cards at zero % interest for now. To me, this makes sense to still do since I can pay them off faster even though I won't see the interest savings. Right?
Definetly. Because when your paycheck goes in, your paycheck pays the credit card payment. ( say its $400 a month) So your credit card would go down $400 a month. With 0 extra cash flow. If you have extra cash flow each month it will go down even faster.
I've been watching your videos for a while, I'm trying to follow your teachings, I even got part time with instacart and I'm really struggling. I'm not sure if it's because I'm not seeing the light at the end of the tunnel or Nascar in in canada and it works differently but man am I ever struggling 😢
still need to add that $210 interest to the tab for the following month...so I guess this method would free up $390 per month, which is still a welcome saving
when you figure this out, are you figuring this on one person or for a married couple? are credit cards cards combined? household income combined? and then do the breakdown?
I just wish I could get my wife on board. I racked up debt putting her through school and have 2500 extra cash and still have debt. Extremely frustrating. Thinking about trading her in, lol.
Hey Christy!!!!!!!! So i have been watching your videos & am ready to put everything i learned into practice…..BUT how should i proceed if I have 3 CC that are close to the limit? I don’t have a line of credit, but I do have a positive cash flow of $300/month. Thank you so much for these videos. We APPRECIATE you! God bless
I'm not Christy, but I would choose the credit card whose minimum monthly payment is the highest. By paying your anticipated monthly expenses plus your $300 cash flow to this CC effectively satisfies your minimum payment and reduces that balance for you to charge your expenses. Rinse and repeat. Your minimum payments for the other CC's, rent or mortgage, car payments etc...stays on your checking account. To each his own but this is what I would do if it were me.
thats exactly what I'm doing. I'm putting approx $905 of expenses onto my 10k credit card, and I pay every 2 weeks $500 onto the card... I actually pay like $505 then $510 then $515 and so on... just a measly $100 more than expenses is dropping my credit card sooooooooooo fast.
would you call what I'm doing with just the one card a version of velocity banking? My average daily balance keeps getting lower and lower and lower? I couldnt get a LOC... turned down; debt to income too high. When I get this card down to zero, I will then put the same expenses onto another card?@@VanntasticFinances
If I have 3 credit cards that I need to pay off would I start with the highest one adding my income in to and paying bills and once it is paid off go to the next? And will I'm just continue to pay minimum on the others?
I just recently found your channel and find it very intriguing and want to try a lot of this. One question though... How do we get the income transfer in one lump sum if you don't have the lump sum and you're going week to week?
I do increments based on what bills are upcoming and what cash I have based on pay dates. You can do this on a weekly basis instead of one lump sum to start out. You just need to allow enough time for the payment to post and add to your available credit so you can cover the next bills due.
You're not really freeing up the $600 cash flow because you moved it over when you moved over the $1300. If you don't move over that $600, on top of the $700 of expenses you planned to pay from it, it's really easy to end up going over the limit. Then fees kick in and your credit score gets dinged. Also, if you don't move that $1300 over early enough before everything comes out, the interest you save might be 0.
Love love love your channel. thank you. question.. if you cc's are $23000 and you just got $19000 in cash. would you do this method or pay $19000 in one chunk? Income is $5700.00 month after gov steals the other half.
The only thing I'm not understanding is satisfying the minimum payment for a CC. Are you depositing your income after the statement date? Because there's still a minimum payment if I transfer income before the statement date, or am i missing something?
She’s saying you put all of your income on the credit card as a payment and then use that card once the balance is lowered to pay the living expenses in doing so, it’ll bring your overall balance down. Very interesting concept
Thank you!! I understand this concept but I'm not sure how to pay expenses when they are not at the same time. Can you share in more detail how this can play out. Thanks so much!!❤
From what I understand youd just pay them as needed through the month. If its due the 15th pay it by the 15th if its due the 2nd pay it before the 2nd. It should work just like a regular bank account in paying your bills. The paycheck goes in, and the bills come out as needed.
Thanks for your videos. Not only did you explain it on 100000000 different videos but you write it on a white board. I'm not sure how people are still confused..🤦🏽♀️🤦🏽♀️
While my credit cards are not maxed out. Most of my debt is limited to direct bank or debt payment. How would I utilize this method in my situation? I just came across your videos to see if I can find something more fitting for me. Thanks.
That’s my question too. What if the bulk of the debt IS credit cards? I feel like this is what most people’s experience is and, because of this, they probably can’t get a LOC.
Christy when you said the expenses could be $1500 or $11k. I remember my grandmother saying, "The more you make the more you spend". I never thought it possible until I went from making 30k a year to 81k. For some reason we were living paycheck to paycheck at 30k a year. At 81k we were still living paycheck to paycheck, lol. We moved into a better house, better cars, and credit cards. My grandmother's old saying was true and we fell right into the trap.
My grandmother said the same thing! Often true.
You probably made more money making 30k a year back then than 81k now. Inflation is not very nice.
Yep. Expenses often follow the income trajectory. It’s not how much you make. It’s how much you keep.
This Joyce Meyer looking banker lady has me pumped to learn more!!! Holly crap! They should teach this in school
We all have fallen into the trap, I don't know why we increase our expenses instead of just finding a comfortable living and enjoy the freedom of having money and being debt free...😬😖 but its probably by design 🤔 but I'm trying to change
@@colbybailey1983 feels almost like we are programmed to level up and tell ourselves we deserve it for working hard for it. The higher the ladder the harder we fall unfortunately.
Thank you for adding videos that don’t mention HELOC or PLOC. Not everyone has this luxury. 😊😊
It’s really important to show Velocity Banking with a credit card because many don’t have lines of credit yet, in their Velocity banking journey
Amen! I can relate to this one and totally understand. She’s so clear in her teaching…😊🙏🏽
I watched an older video of yours last night,all through the night i couldn’t sleep,my brain was in over drive as i couldnt understand.
Woke up this morning,watched this video and now i understand.
This is pure GOLD
❤️…it is! So glad God brought you to it..
I feel you! Same here. I’m praying for discipline.
This just happened to me! woke up all night. Haven't been this excited in a long time
@@VanntasticFinances when do transfer your income into the credit card? When it is due?
Now don't go jolly and buy anything beyond stated expenses because before you know it, the $600 cash flow will turn into debt.
Thank you so much! I’m getting all my expenses in order as we speak and go from there. I will do my best to go through all your videos for answers I know God put you in my path, thank you 🙏
This almost seems too good to be true but it’s working for me! So far, so good!!!
This is my 2nd time watching your video and its making more sense. The only issue I see for myself with making this work is discipline. Not spending beyond that $700 seems to be key for this to work.
It requires a disciplined budget no matter how you tackle it. Dave Ramsey, Suzi O, random guru, snowball method, avalanche method, velocity banking.
What laser-focused me was the idea of moving from having any debt to leveraging FICO for assets (even if the assets were all in 5% annual cds).
Facts!! The lack of emotions connection with the credit card balance is what can get in my way
@@Leon_Aldrichwhat do you mean leveraging fico for assets?
It's interesting because I had no idea you could do this. When I started to build my credit. At the time I had a goal to become a home owner in 2 years. I had no credit. So I got a captiol one card at a 200 dollar max limit. And I used it weekly to buy my groceries. I paid it off in full. Every week. I've never even to this day have paid any interest on my Capitol one. And by my surprise my credit boomed!! At the 2 year mark. I got a credit check through my bank and I had over 800 credit score on 2 and a 790 on the third. So I was able to get under 3% interest on a 30yr fixed. So if anyone needs to build credit and fast do what I did. But hold off to buy a house in this market.
In this example, velocity banking doesn’t make a difference, other than lowering the interest charges for the month just a bit. After month one, the balance is 9400, which is what it would be if you didn’t use VB at all.
I’m grateful to see a comment like this. I can’t see how the method improves cash flow, since now we have to use the credit card, and before we had the flexibility of using cash. I’ve been feeling silly for not understanding this part.
as for the interest saved, comparing this method with my own debt spreadsheet, I can only see pretty small changes to the interest owed. maybe it’s more and I’m making a mistake predicting interest based on the avg daily balance.
Well, not only does doing it like this lower your interest....but putting the money in the card first counts as your monthly payment! So if you had a $600 monthly payment due on that card, that is now $600 more a month in cash flow that you can use for something else. HTH! This is brilliant 👏
Your missing the credit card payment. If the payement is around $400 you no longer have to make that payment because your paying more then the payment amount each month. So now instead of making no progress you are paying down $400 each month on your credit card.
Say you have 2 credit cards. The second has $1500 on it. And the payment is $70 a month, after 4 months of just paying your bills using your credit card you will have enough to pay that credit card off with the other one. Which opens up a cash flow of $70. Now you can pay $470 each month with no difference in your costs.
So lets say you do that for another 2 months, your credit card balance that started at $10000 is now $9200 and thats after paying off your other $1500 credit card. But this month your car breaks badly need fixing, now you have $800 you can use to pay for your breaks. And have paid down $1500 in debt. Wheras before there was 0 hope, 0 leway, if you needed new breaks youd have been taking out another credit card. Which you would have had to figure out how to pay when you already had 0 left over. So with 0 extra cash flow youve paid off 1500 in debt and didnt need to go farther into debt.
You will have to account for interest it would be less then that being paid down each month, but i simplified it to try and make it make more sense. But your card would likely only be going down like $300 each month. But still a significant improvment.
@@lizzsmith7126you have to account for the credit card payment. At first that is what is paying off your credit card. If your payment is $400 it will be payed when you put in your paycheck. Which means you dont actually have to pay that $400 and it will pay your credit card down $400 each month with no extra money going into the card.
@@Ginger_McElfresh_Art It doesn't actually give you "extra" cashflow. It's equivalent to paying the $600 payment, and then using that available balance to spend on something else. It's the same either way. Like I said before, after one month, the balance is $9400, no matter which way you describe it.
Note that I fully believe in VB, and I'm using myself with a first lien heloc. But the point where the velocity comes in is when you already have extra cash flow to pay down the balance more than just what the minimum payment would be.
I think you've been sent from heaven. Best advice ever. I wish I'd seen this when I was paying off my mortgage years ago. We kept adding money to the principle with a second job and putting kids in daycare. This is so much better. Blessings to you.
Thanks for the kind words, watching and for sharing! This is wisdom straight from God...HE IS SO GOOD!
Man this lady changing the game
thanks to you i am clearing out my main credit card valued at $1,750. i have knocked it down to $1,250 so far by your teachings. thank you.
Wish I knew this one 3 years ago. Watched several of your vids, clear and concise. Velocity banking here I come. Thank you! Subscribed
Only three years? I'd like to go back to about 2007 minimum (grin).
Honestly this advice is absolutely golden, thank you
Thanks for watching!
Why not drop off golf fees, membership, subscriptions and take that money and slap towards the credit card plus pay the regular amount, eliminate the credit card debt and stay away from credit cards, vs creating new debt
Cha-ching ! The light bulb flipped on about a week ago. My only regret is I didn't know about this 30 years ago ! Blessings to you, Christy....Vanntastic!! LOL
Thank you so much for that!
Maybe I’m old.. I still love a whiteboard!!
Me too!
I'm so excited, I have just started doing this last week. I dont have any available balance in my cc yet but with every week it will get better!
It might be helpful to add a video that explains how to pay monthly expenses with a card that’s literally maxed out. You mentioned that the card is at its limit - no room left to pay those expenses. So, how do you start paying them on the card? Almost seems like you’d need one month of payments ahead, pay to the cc, then start paying them on the cc?
Right! Im so confused 🤣🤦🏽♀️
Exactly, confusing how explained bcuz the example given couldn’t happen unless your credit card company allowed you to go over your maximum limit which would add a lot more over the limit fees.
You put your income to the credit card first (the payment). Then you add your expenses as they come throughout the month. Repeat.
Put your pay check on the credit card, then use the credit card to pay your bills.
@carlascreativefix3248 not with ya putting your monthly expenses amount onto your credit card and that brings the owed amount down that much as you put on the card then you put your expenses onto the card so your card can pay them and that leaves your whole amount that you paid on your credit card payment without the credit card company taking the interest out of your monthly payment your card shows the whole amount of your monthly payment is still on the card and that gives you that whole amount to the good to spend if ya so wish to.
Finally an example that looks like me, Thank You!
I love your videos, they have changed my life. I now feel like I am in control of my finances. This should be a mandatory HS class
@earthenergyhex So thankful and YES! This should be taught in schools.
Worked up all my figures and just started. Couldn’t get a heloc or ploc just yet. I’m working with a credit card. Starting off with paying off a 10,000 loan, then I’ll hit my truck loan of $36,000. I figure I’ll only have my mortgage payment after 18 months. Then I’ll attack that. Thank you
This is the second video I see of heart of yours. And I am crying.😢 but happy at the same time! I feel free!
And I haven’t even started yet😆
We love hearing the same information with different examples. I could watch your videos all day. Lol
You have to be very disciplined when doing velocity banking. Other wise it will not work. All that cash flow must go to paying the credit card.
@@DebtfreeMike the balance of the credit card gets paid off every month or paid way down. That is how it works.
Man if you’re making $2,800 a month you got no business having golf fees 😂
If you’re making 2300 a month you’re probably still living with your parents!
If you’re making $2,800 a month, that’s likely goofy golf you’re playing.
😂😂😂
Why does this feel terrifying?
I started my journey with your system one month ago. I'm going to keep watching your videos Period thank you so much for sharing. I appreciate how clear you explain things.
Hows things going? Making any progress paying down debt?
The $600 payment does not become cash flow, because the credit card is not paid in full. The payment might go down a bit, but there is still a payment due on the balance. Unless I’m missing something…
You are missing the point.
You are 100% correct and you are NOT missing the point. In this example, the lower interest rate becomes your “cash flow”, which should help pay off the credit card faster, which would eventually become more substantial and literal cash flow
I see so in this case when she says the interest may come down from 240 to maybe 210 that $30 is the gain you get? Then it will increase a bit each month?
Just subscribed love your knowledge thank you for freeing a homeless person from debt I can see the light now
Doubled my pay is 2020. Paid off $60k in debt. Now my pay went back to normal. Bit I have no debt
Are you saying you doubled your pay using velocity banking or you just got more income and that's what got you out of debt?
This is great advice. The only issue is a credit card that doesn’t give you credit for payments right away. I have one that takes 3 days to credit a small payment of $50.
If you know it takes three days and you get paid on the same day… make the payment three days before and it posts the day you get paid.. I do it this way
3:29 crap I wish I would have done this before they closed my Amex. I messed up with two return payments….
I wish I could put my monthly income in one shot like the examples, but can only do bi-weekly income transfers. Makes the process seam longer, but regardless I’m grateful for this new found knowledge!!
P.s. Merry Christmas to you and yours from Canada ☃️❤️
I’m going to say that most will never be able to follow this plan, because they won’t be able to stick with only spending $700 per month limit on their credit card. How did they run it up to 10k (maxed out) to begin with ? By using it for “expenses” they didn’t have the income for.
Yes that is the issue. It will still take self denial, which is the hard part. But the extra paid off will give leway for small extra expendatures or if you have an emergency you will have funds after a few months to pay for that without goinf farther into debt then you already had been. But self control and self denial and a desire to do what it takes to be free from debt is the only way youll flget out of it.
Its a good way to help, makes that money work for you more at least.
😮😮😮 great eye!!
Agreed. This method would only work if you’re extremely dedicated to being on a budget until the debt is paid off. If not, you dare not try this or you’ll find yourself in a bigger hole than when you started 🤷🏽♀️
Great video!!
I am starting to understand it as I watch your videos.
Thank you🦋💗
I think god sent you to my feed. 🙏🏾
🙏🏽
I’m going to try this when I get paid. It makes so much sense but I am very nervous about not having cash in my hand. But it has to feel so better to lower my debt
Same here but i have a credit card with a balance of $3800 that i can’t seem to bring down the balance and just to think about adding more to the balance makes me nervous that I won’t be able to pay it off but they just raised my limit from $6000 to $9800 so I think I’ll be good.
Hello Christy, I’m missing the boat on this one. The credit card is $10,000 and I’m paying $1,300 so I understand that the payment is satisfying the minimum payment due but you wouldn’t have a balance of $8,700 it would be $8,942 because you still have to pay that $242 in interest to the bank correct?
Hi Christy! I’m on social security disability. But I just set up my State Farm account (house/car/life) to be paid from a Visa card that is linked to State Farm and my bank account. So when I get my money deposited each month then I’ll just transfer it to the Visa card and then it will pay the insurance at the end of the month. I’m hoping to get that card paid down. So I’ll let you know in a couple months how it’s doing! Thanks for your help! God bless!
How have things been going for you? Did it help you? It is starting to help us some and it's only been about a month!
@@malzimusit’s been fine. I just wish there was someone to help with the other two credit cards and HELOC I have. But my credit score isn’t as good as it was either
You may have answered this already. Did you start the process with a credit card that had a maxed out balance of 10,000? What was the starting balance of the credit card you are going to use as a Debt Tool? Could you do a video when ALL of your credit cards are MAXED OUT from the start? Thank you.
This is the example of a maxed out card. Take the $600 normal payment and the amount of the bills you intend to pay with the card and pay it first to the maxed out card. In this case that totals $1300, $600 plus $700.
In this example, the card is maxed at $10k. She pays in $1300 to it, over the month she pays the $700 back out to bills, and is left with a new balance of $9400.
Let me know if I can help further.
@@nmsauditor1a950 yes help me understand. Wouldn’t you have the card down to $9,400 if you had just paid your original fee of $600? If no, why not? 10,000-600=9,400.
All of this makes sense on having to use it as a checking to bring down the interest the one thing that I can’t wrap my brain around is why we keep saying that eliminates the $600 payment? You’re still making the payment so I’m not sure why we are saying it satisfies the payment we’re paying the 1300 into there which includes the 600 but the only thing I don’t understand every time and it says eliminates the monthly payment
@@annaholzner8711I don’t understand that part either because if you pay the $700 in bills, then the card will have been reduced by only $600 minus whatever the interest will be for than month. It’s not cash flow. I keep running the numbers and watching videos…this helps you lower the interest each month, while paying down the card. Which in turn helps your bill get paid down a little quicker.
This is wonderful. It's working wonders for me. ❤🎉
Thank You, yes Makes sense.
Okay; Present and watching!
I get paid bi-monthly. My first biweekly income covers my checking account loans- car loans, student loans, mortgage, etc. with $200 left over. My 2nd biweekly income covers my credit cards that could cover the rest of my living expenses.
I just picked up a 2nd job, and have not yet caught up on past-due bills. I am confused at what to live on, while I am catching up.....
I really like these short & sweet explanations 👍🏻 #velocitybanking #cashflow
Thanks for watching!
❤ Thanks! You've helped me immensely and I'm running with it
I was a bit confused at first, but I get it now 😊. I’m going to give it a try this PP. thank you for sharing 😊
This definitely works, starting my second month. The only concern is what if the CC company lower your credit limit? Which they can do, and you put your money into a card, then cannot charge up the expenses? Playing Devil’s advocate, thinking. Again, this technique saving interest definitely works. I’m a few thousand near my limit, so, doubt they would spontaneously lower it. However, it did happen years ago for some reason. Anyway, thanks for your channel. 😊
Sorry I'm a newbie . What do you mean by putting money into a credit card ?
When I say I a,starting this at the top of the year, it makes so much sense
You saved us. Thank you so much for sharing this valuable information. May the Lord bless you.
I Love what you are doing and the way you are breaking it down. I learned this back in 2017, so I got a HELOC of $300,000 for 15 years, fast forward today and I'm totally Debt free, own several properties, and Offset the $300,000 line of credit, ready to get another one Just because I can.. If You would like to talk privately and maybe learn what I've learned, I'd glady direct you so you can add it to your arsenal and maybe teach it to your community. Keep up the good work!
Hello. I'm totally interested in learning how you because debt free
Interested
Interested
Thank you for being a willing vessel. You’ll never be empty.
I have question please? Is there a specific time we should make that payment on the credit card when using it this way??? Statement dates vs due dates??? Bills first or Money first?
Thank you
Awesome question!! ❓
I’m going to try this asap
Thanks so much I am working on paying off all my credit cards!!🎉🎉🎉❤❤❤
You got this!
Thank you so very much for sharing this valuable financial information. I'm going to begin using it immediately & am looking forward to eliminating debt.
The problem I’ve ran into is with a maxed out credit card is you put your income that will pay your bills on the card to bring it down but once you pay your bills you’re back to maxed out and then the interest fee shows up and pushes you over your credit limit and now you’re in the red and have a hole to dig out of the next month because you now have to pay extra…
Am I missing something?
That's my problem also. She doesn't mention that you have to add the interest to your bill when making a payment which eats your cash flow. Molly tells you this if you're close to being maxed out- like me due to low income in winter months. Just starting to get back on the program. Good luck 🍀
Yeah..right now I'm only putting bills onto cards that will not go over limit once interest hits and works with my check, due dates and statement dates. I also have those bills and my cc payments in the budget. I'm just going to have more transactions and payments than I have in the past and I hope it will be like my student loans- paying multiple times a month cuts into the daily interest accrual. I realise CC are different than student loans but this is the only way I feel comfortable trying to make a change with my payments currently. I don't think I could throw *every* dollar onto CC at the beginning of the month in good conscience.
Game changer.....wow!
That’s exactly what I do
Can you explain more thoroughly how it's gaining me cash flow by transferring my income into the credit line
When you put your paycheck in it pays the payment for your credit card. Say your credit card payment is $400 each month. That means you now have $400 less expenditure each month. Because you no longer have to pay $400 for your credit card since your paycheck already paid it. That means that the credit card will go down $400 each month ( minus the interest, lets say $100) so after the first month without paying any extra, what you owe on your credit card will be $ 300 ( payment minus the interest) less then it was the month before. And that will continue to happen, as your interest lowers also each month because you owe less on your card.
Hello! Just came across your video & im definitely listening. My only question is what if we are paid biweekly & cannot put the funds into the credit card at one time? Thank you so much for all the information !!
You don't pay all your bills at one time either, correct? You will just have to map out putting in your income and when the bills are due.
Good morning and God bless you!
God bless you!
I did know grocery stores take a credit card for payment for groceries. A few years back I tried paying with cc and they would not let me pay with cc for the groceries.
Winco is the only grocery store I know of that won't take credit cards. Cash or debit only there.
It was Winco where I was not able to pay with credit card
So basically, the money for your bills are paying the payment on cc so the 600 goes towards principal, if I'm correct 😅
It really is Vantastic!!! Lol. And easy too. Thanks much.🎉❤
Thank you it’s making more sense just watching many many of your and other videos 😊 blessings friend ❤
😊 Thanks for watching!
I’m going to try this, I need help severely. I have a credit that’s been maxed out for a year now.
I wish you would have continued example with months 2 and 3…
Awesome videos, very knowledgeable, I do have a question, how to you calculate daily interest on the line of credit or a credit card. Thank you.
Balance * APR% / 365 * 30days. This will get you pretty close
I like this way thank you.....a certain motorcycle company issued me a credit card to put accessories on the bike. Yes I wasn't disciplined and maxed it out! But you do earn points /cash back for using it, so why not use it for this method and get an incentive while paying bills?
Right on! Only chargeable expenses onto a credit card, of course
I wish I could make myself take this chance! Got too many store credit cards tho. You can't pay them with a cc.
Try doing the same thing..but with cash. 🤷🏾♀️
Thanks for sharing this! 😊 Easy to understand this way!
I’m sharing this with everyone I know.
Not to mention put it on a credit card that earns cash back rewards for this purchases.. like 5% cash back on gas and groceries and 6% cash back on subscriptions. You will actually save even more money..
Definetly a good way to go about it.
10,000 + 700 expenses = 10,700.. .most CC companies woudn't let you go over your max. but - > 10,700 - 1,300 = 9,400. month 2. 10,100 - 1,300 = 8,800. month 3.. 8,200.... etc etc... this would work if card wasn't maxed out.
Maybe that last $700 was already charged, and counted into the $10K. Maybe that's why she didn't add that. 🤷🏾♀️ But I do see ur point of view.
What? You're not paying the expenses with the credit card until after you transfer your paycheck. You start with a balance of $10,000. Transfer your check, and your balance drops immediately to $8700. Making $700 in purchases at that point does not take to you over the limit.
This sounds like a fantastic plan. I have about 11K over 2 cards at zero % interest for now. To me, this makes sense to still do since I can pay them off faster even though I won't see the interest savings. Right?
Definetly. Because when your paycheck goes in, your paycheck pays the credit card payment. ( say its $400 a month) So your credit card would go down $400 a month. With 0 extra cash flow. If you have extra cash flow each month it will go down even faster.
I've been watching your videos for a while, I'm trying to follow your teachings, I even got part time with instacart and I'm really struggling. I'm not sure if it's because I'm not seeing the light at the end of the tunnel or Nascar in in canada and it works differently but man am I ever struggling 😢
@2:33 IT DOESNT LOWER YOUR INTEREST RATE, IT LOWERS THE INTEREST CHARGED
still need to add that $210 interest to the tab for the following month...so I guess this method would free up $390 per month, which is still a welcome saving
when you figure this out, are you figuring this on one person or for a married couple? are credit cards cards combined? household income combined? and then do the breakdown?
Good point.. You took my thought. Hopefully she will respond. 👍🏼
in addition to this, if your credit card is linked to your checking account as overdraft protection, then you can do this with everything.
EXACTLY!
I just wish I could get my wife on board. I racked up debt putting her through school and have 2500 extra cash and still have debt. Extremely frustrating. Thinking about trading her in, lol.
😮 ouu u so mean!! 😂
Hey Christy!!!!!!!! So i have been watching your videos & am ready to put everything i learned into practice…..BUT how should i proceed if I have 3 CC that are close to the limit? I don’t have a line of credit, but I do have a positive cash flow of $300/month. Thank you so much for these videos. We APPRECIATE you! God bless
I'm not Christy, but I would choose the credit card whose minimum monthly payment is the highest. By paying your anticipated monthly expenses plus your $300 cash flow to this CC effectively satisfies your minimum payment and reduces that balance for you to charge your expenses. Rinse and repeat. Your minimum payments for the other CC's, rent or mortgage, car payments etc...stays on your checking account. To each his own but this is what I would do if it were me.
What @spectator1123 said. 😊 Thanks for watching!
Thank you!!!
Hello, I have a question. Why are we using,depositing our entire income and not the expense portion when paying off debt? Thank you so much!
thats exactly what I'm doing. I'm putting approx $905 of expenses onto my 10k credit card, and I pay every 2 weeks $500 onto the card... I actually pay like $505 then $510 then $515 and so on... just a measly $100 more than expenses is dropping my credit card sooooooooooo fast.
Congratulations!
would you call what I'm doing with just the one card a version of velocity banking? My average daily balance keeps getting lower and lower and lower? I couldnt get a LOC... turned down; debt to income too high. When I get this card down to zero, I will then put the same expenses onto another card?@@VanntasticFinances
If I have 3 credit cards that I need to pay off would I start with the highest one adding my income in to and paying bills and once it is paid off go to the next? And will I'm just continue to pay minimum on the others?
You can do that or spead out your monthly expenses for cash flow to attack your main. I'm juggling 10 cards and sleeping 4 of them.
I just recently found your channel and find it very intriguing and want to try a lot of this. One question though... How do we get the income transfer in one lump sum if you don't have the lump sum and you're going week to week?
I do increments based on what bills are upcoming and what cash I have based on pay dates. You can do this on a weekly basis instead of one lump sum to start out. You just need to allow enough time for the payment to post and add to your available credit so you can cover the next bills due.
EXACTLY!!!@@kay4732
You're not really freeing up the $600 cash flow because you moved it over when you moved over the $1300. If you don't move over that $600, on top of the $700 of expenses you planned to pay from it, it's really easy to end up going over the limit. Then fees kick in and your credit score gets dinged. Also, if you don't move that $1300 over early enough before everything comes out, the interest you save might be 0.
But you also save the credit card payment. Its not just the interest.
@@Sarah-psalm127 I’m talking about if you are close to your credit limit. The interest charges could make you go over the limit which is bad.
@@danielled5883 yeah, youd definetly have to watch for that.
Love love love your channel. thank you. question.. if you cc's are $23000 and you just got $19000 in cash. would you do this method or pay $19000 in one chunk? Income is $5700.00 month after gov steals the other half.
It makes sense to me.
How does this work for being paid weekly? Putting the money in does not post immediately, how do you circumvent waiting for the payment to post?
How soon can you start using your credit card to pay bills after you make that money transfer on to your credit card?
The only thing I'm not understanding is satisfying the minimum payment for a CC. Are you depositing your income after the statement date? Because there's still a minimum payment if I transfer income before the statement date, or am i missing something?
How do you add all your expenses to a credit card that is maxed out?
She’s saying you put all of your income on the credit card as a payment and then use that card once the balance is lowered to pay the living expenses in doing so, it’ll bring your overall balance down. Very interesting concept
Thank you!! I understand this concept but I'm not sure how to pay expenses when they are not at the same time. Can you share in more detail how this can play out. Thanks so much!!❤
From what I understand youd just pay them as needed through the month. If its due the 15th pay it by the 15th if its due the 2nd pay it before the 2nd. It should work just like a regular bank account in paying your bills. The paycheck goes in, and the bills come out as needed.
Thanks for your videos. Not only did you explain it on 100000000 different videos but you write it on a white board. I'm not sure how people are still confused..🤦🏽♀️🤦🏽♀️
For real 🤦🏼♀️
Hi I like your videos. I went to the playlist looking for how to car loan repayment. If anyone can point me in the right direction please. Thx ☺️
What do you do if the credit card company lowers your credit limit after you put your income in and cannot pay your expenses with the credit card?
This
While my credit cards are not maxed out. Most of my debt is limited to direct bank or debt payment. How would I utilize this method in my situation? I just came across your videos to see if I can find something more fitting for me. Thanks.
That’s my question too. What if the bulk of the debt IS credit cards? I feel like this is what most people’s experience is and, because of this, they probably can’t get a LOC.