If this helped you, or you found it easy to follow along. Please do me a favor and let me know here in the comments. Your feedback is important to me and helps me understand if I'm representing this info in a way that makes it easier to understand... or not. Also, if you missed part 1, you can view it here: ruclips.net/video/0F7k4_76cWU/видео.html
@@coreyholden6934 there are many ways to address. Velocity banking is the concept but the debt to can be many different things you can use. I’d be happy to help.
This format adds so much more value to me. 1. I watch on my phone, so I can actually see the calculations without pausing and zooming in. 2. Less is SO MUCH more! A lot less talk and a lot more action. Enough said. 3. The visuals and sound clips enhance the content and keep the teaching moving without being a distraction.
It's something to watch this because I've pretty much been doing this for the past few years without realizing I've been using my credit card as a debt tool. I'm always using my credit card to pay for bills and other things. I never worry about monthly credit card payments because I'm always paying it off. I have an Amazon card through Chase Bank and a lot of my purchases end up being free because of the points I earn. A lot of good information in this bro.
I truly appreciate the feedback. If you need anything further I would be happy to support. I have other strategies that may help your financial future.
It if so the VB videos I've watched, this is hands down the best one. So simple and I was not confused at all by the terminology or the concept. The math/ numbers were simplistic. Thank sir
Extremely helpful and the editing is absolutely amazing! These videos take a confusing typically dry subject matter and makes it interesting and entertaining while ensuring the proper information is conveyed. Keep up the good work!
King Red Black Cheetah Thank you for the feedback, we need it. If you would like to see more topics like this related to velocity banking, would be glad to do it. Don’t forget to subscribe and share. If support is needed by contact info is located below the video.
Really appreciate this feedback. For years I assumed there were “enough” people covering this topic and I didn’t need to add to the noise. Comments like this help me understand that my style is making a difference for folks. Really appreciate you taking the time to watch and comment 🙏🏽
Great video my brother. I started using velocity banking about 4 months ago and I love it. I didn't have many bills but it helped me stop my bad habits and start a new process of thinking. I used it to remodel my house and pay my car off. This is one of the best videos I have seen studying velocity banking. You made it simple for people to undrerstand.
This really helped me see a little clearer what I have been trying to understand for several months about Velocity banking. I am 75 years old have 12 credit cards that total $32k in CC debt, no mortgage and no HELOC or PLOC. I do have a car payment and have no clue where to go from here. I need some help trying to map out my strategy to pay off as much of this as I can before I leave this world. My husband is a veteran with 4 brain tumors and dementia and we are struggling to get by. Thank you for helping so many to hopefully see how this works to take and get back on an even keel.
Glad I could help. There’s s till a lot of people who are unaware that options like this exist. Please like, share and subscribe to help me get this info in front of more people, Your support is greatly appreciated.
Brilliant strategy, this is what we will hopefully be teaching in our public schools in the future😊 also like the different ways you’re breaking down the steps. More people need to see this video!
My apologies for just now responding to this comment. I must have missed this notification. I do enjoy these topics and would happily help whoever needs. Please share and thank you for the feedback.
A great presentation. Perhaps it’s because I’ve seen others that did not quite achieve your level of professionalism. Ideas were clear and the accompanying graphs, charts and animations helped to support the numbers. I’ve started on my own, but I will make contact. Thanks
Thanks for that feedback. Really appreciate it. I'm glad to hear you have started, looking forward to hearing what you accomplish. I also teach advanced strategies using this same concept, just different vehicles. We go live twice a week here on this channel, and that's the best place to connect and be able to discuss this strategy. Hope you'll check us out soon.
Really appreciate it, I’m different from others who do VB. I focus on the process and structure I don’t dive deep into the numbers. I believe if you understand the process the numbers fall in line.
@@selfdirectedDONNELL most welcome.. actually i wanted to start in july.. was trying to understand hoe it works first prior to applying it. I was also seeking to know if it can be applied in Canada ( my location ) but i dont see why not as its a basic unique strategy using revolving debt
Mynd Tha Villain Glad we could help. Let me know how I can further support you in your journey. Don’t forget to subscribe and share. Contact info is below the video.
Just starting out on my journey, THIS WAS HELPFUL. Will definitely be adding some “velocity” to my financial strategy and be utilizing it streamline. I don’t have that much debt to clear but I have a couple of tools that will come in quite handy in regards to trouble spending those dollars 😎
We appreciate the feedback. We are starting back from basics again this week. It would be a great time for you to join us live and get some questions answered
I subscribed as soon as you said I know my Cash people are yelling like wait what about emergencies?! LOL As soon as you change and embrace your Mindset that your Savings will be on your Credit Cards, everything falls into place. Loved this! 🥰🥰🥰
Thanks so much for watching! Those who get it, get it. Hopefully more will learn and it’s my goal to help educate others to see the value in strategizing… work smarter, not harder. Glad you’re on board 👊🏽 and thanks so much for the sub!
Awesome video! Very well done! The big question for me is: If 100% of the income is paid to the credit card, where are the mortgage, auto loans and 401k loan paid from? Would you advise putting 100% of income onto the debt tool, but then cash transfering back to checking account. Other than this confusion on my part, you've really provided a great explanation and visual!
Thanks for that feedback! I recently made another video showing how to pay a mortgage with a credit card or line of credit. You can watch the edited version here: ruclips.net/video/7lbF4aQV2HE/видео.html Or the full length livestream: ruclips.net/user/liveh5AkMcKEIk0?feature=share We go live twice a week Wed & Sun 6pm PST. We’d love for you both to join us. It’s the best time to ask questions and get detailed answers.
And that’s the best comment I’ve received on any video I’ve made. Please share, my goal is simply to educate. Check out this new series on compound interest.
Watched different influencers regarding this and was confused but you explained it a little better. The only thing, what do you do if you have several balances on different CC? Do you have to start with no debt on any CC before you can start Velocity banking? You borrowing on your 401k means your take home is less because you have to pay back the loan. Make it make sense.
You focus on one card and just pay the min on the remainder cards, once the one card is under control then you transfer the balance from the other cards. As it relates to the 401k loan, he is using a self directed 401k loan. So he has full control and paying the loan back is included as well. But his income is not impacted. Watch video 1 related to velocity banking it explains that a little better.
I really appreciate that feedback. It's important to know if I'm easy to understand or if I need to try a new approach. Everyone should have access to this information. Is there anything in particular you would like me to cover in a future video? We livestream twice a week and will be covering velocity banking, it's a great way to get your questions answered fast... with a breakdown.
I watched this right after the first video and I feel like I've been to a great course. The velocity banking that you talk about, I've never heard of and hadn't considered until hearing it from you. Great content, very valuable info, and use of my time. The video game graphics are hilarious! Last but not least the fact that this can be done on all income levels is really awesome. Looking forward to more videos and taking to you in person.
More content coming. Thank you for the feedback. This exact concept helped me change things financially for my family many years ago. And as you mentioned this fits everyone. I have several tools that can change the financial future of all income levels. Let’s talk.
Thank you, Donnell, I have watched several videos about Velocity Banking and Infinite Banking. You did an excellent job of including visuals showing how Velocity Banking eliminates credit card debt. Your illustrations show that your client is sticking to a budget, correct? Also, how do you account for monthly interest charges for the credit card your client is transferring monthly income and using like a checking account?
Appreciate the feedback, yea I referenced that in a live we did a few weeks back. Most people who educate on VB don’t account for the interest accruing on the Debt Tool. Mainly because it’s hard, the worse case tho is it may add a month or two to your process. So most justify it as negligible because your are putting all your income on the debt tool which also means you can ignore the monthly payment due cause your income satisfies that paynent. Does that make sense?
Helocs, PLOCs, Policy loan, there are also credit companies that will allow you to pay debt with ach for a fee. The way I did it was I used a credit card as the overdraft acct for one of my checking accounts so when a bill was paid and went to draft from checking, it pulled from the credit card.
What interest specifically? While it’s been a few years for this video, do you mean the debt tool interest? If I remember correctly you are probably right because when I put the income on the debt tool it satisfies the min payment and makes the impact of the interest inconsequential to the outcome. But don’t quote me, it’s been quite a while. Thanks for the feedback. You should see tomorrows VB example, will be fun.
Donnell, have you heard anything about credit card companies lowering credit limits after people make large monthly payments? I have watched other RUclips channels explaining Velocity Banking, and have heard warnings to make micropayments to avoid having my limit lowered on the credit card I am transferring my income to pay it down.
If you are over leveraged banks are watching you closely, and yes I know of banks cutting your limits when debts have been paid. I am really not a VB guru, I just happen to understand how to use it. I’m more focused on what you due w the cash flow when the debt is eliminated. Where do you put your money then? How about a place that makes its own money that you can leverage and not have to rely on banks or credit cards…Thoughts?
I think one of the things people (raises hand ...) get stuck on is seeing you're paying things like rent and / or mortgabes with a CC used as a debt tool. Nromally this is paid via checking accounts. Do I assume a cash advance is taken back out into the checking to pay a car loan or mortgabe? I've watched a few other videos where they dump all of their money into a CC debt tool EXCEPT what is needed for things like a car loan or mortgage. Can you please clarify how this person did this? .Thanks !
thankyou for this video - question - how are you using that credit card (as a debt tool) to pay off those other credit cards? i thought you cant use credit cards to pay off credit cards??? thanks
There are many tools that make this possible. Because of the way my checking acct is structured, I have overdraft protection at no cost. So I link a ccd to my checking, keep it empty and it overdrafts to the ccd.
And if you really want your mind blown. I now use my home as my debt tool. So now instead of a ccd, my home is my debt tool. Structured still the same. (Video coming soon)
Question.. what happens if you have more than one high balance credit card? Which one should be used as the debt tool I assume the one with the lowest balance. Also once you pay off the other credit cards or transfer the balance what do you do with them? Don’t they need to stay open and use them so they creditor won’t close them?
Debt tool: highest limit and lowest interest rate. All other cards you can use to pay bills with them pay in full to the credit card. They won’t sit stand any that way and will continue to build credit. If you have too many, or annual fees, might need to let them go. You have annual fees?
I try to charge after my credit card close date - so I can roll forward the amount due by one month. Closes on the 18th, I put new household expenses on the card on the 19th.
@@vdeblois1352 You are correct. When you pay off your credit card matters and effectively using the Closing date versus the Statement date can have a significant impact. You make a great point!!
Good morning Mr. Stidhum, My name is Gene and I am self-employed. My question is how can I implement the "velocity banking strategy" if I do not have set paydays as to when my invoices are paid? I am very much interested in getting my finances in order and would appreciate any information that you may provide. Sincerely, Gene
I have a monthly income of $ 2048 and a $12,000.00 car loan and my credit card limit is $1500.00 with no outstanding balance to pay on the card. How do I tackle my card loan payment?
The most important factors of this equation is cashflow and the interest rate on the card and car loan . If you’d like, you can book a free consult by visiting selfdirected.info/calendar and we can go through your numbers together
It’s actually perfect for this case. We use “when you get your paycheck” as one event, but if it’s multiple events in the month, same process. This is our case, actually as our income fluctuates. That’s why we are so confident in this strategy being a part of our overall system
@@selfdirectedDONNELL thanks for the reply. I was trying to get your free worksheets to take a closer look, but something was wrong with the link. I'll try again.
Can you recommend any third party institutions I can use to make credit card purchases for non traditional purchases such as rent payments? Trying to setup all my creditor payments thru my credit card. Thanks Anthony
It varies. The easiest way is to see if your bank offers overdraft protection. If they do they normally will allow you to link a credit card to your checking account and at no charge allow any overdrafts to be drafted from the credit card. This is how I used to do it. There are various ways to handle this tho.
Have you heard of the new BILT credit card that earns you points for paying your rent, and other purchases, and with no fee for using it to pay your rent? I was recently approved for it, and I like it so far. It pulls from experian
I have a 1500 CC that I haven’t used yet. And I plan on using the credit card to make balance transfers to pay off an auto loan faster… my income is around 5500 an month. Is it ok to put 3700 on top of the CC each month?
Pay attention to the cost as well tho, meaning if you are using a 17% ccd plus 3% transfer fee to pay off a 8% Car loan, be careful. I can run a scenario where that makes sense, I can also run one that says maybe it doesn’t. Doing VB w a credit is great when you can pay most bills from the card, and the card you use as an interest rate less than the bills you are addressing. I like to let the math determine what should happen.
The only question that arises is, the left over 10k on the other credit cards. This scenario assumes the ability to make the min payment to the other cards, using the high limit CC. What if you can't pay a CC with another CC?
I did another video where sometimes you just can’t, and when that is the case, you have to leave a certain amount in your checking to address those expenses that can’t. The key is to do so where applicable in my opinion.
Question: Do you think this is idea to start if the person is going on vacation in the next 30 days (September 11, 2023) I would love to go in a better financial situation I have 2100 in a debt tool…wondering if I should start this process this week? I just don’t understand how I would have tangible money or would I do everything virtually? Ughh I need help…let me watch more videos
It’s sounds like there may be an opportunity to digest more content related to VB. The last thing you want to do is jump into anything if not ready. There is a lot of content out there by a lot of great people. In my humble opinion, wait till you have fully grasp the concept. Cause not understanding could put you in a worse financial situation.
@@selfdirectedDONNELL ok thank you I will continue to study your videos. I will stay on this platform because I don’t want to confuse myself and I’ve been praying for financial stability and wisdom with my income. So thankful for you and your wife! New subscriber👏🏾
You got it it. In the meantime, the example we covered on our last live had a CC balance. If you want us to cover your exact situation, just go to selfdirected.info/live and send us your figures. We will change your name, but this way, you'll get a FREE step-by-step guide and won't have to try and figure it all out alone. Thanks for taking the time to leave a comment. Really appreciate the feedback
Hey I’ve got a $15000 credit card and I wanna start chunking the mortgage doing this velocity banking method. How much of the $15000 would you use ?? I was thinking about $8000. Your thoughts Kind regards Karl 😊
Congratulations, there are many theories about what you should chunk. I believe it’s math related, what you should chunk depends on your Cashflow. Another rule of thumb is no more than 66%. So your 8K seems good. Good luck.
@traybern Thank you, you mind if I use this comment to explain in an upcoming live? I would be happy to show you. There is so much you have been conditioned to believe as it relates to banks. It’s not your fault. But please keep following. I appreciate you.
@@selfdirectedDONNELL 5% is better than 10% because of simple math. Why is that so hard to understand? Here is an example: $10,000 at 5% = $500 interest over a year. $10,000 at 10% = $1,000 interest over a year. Easy math Donnell.
To avoid the balance transfer fee you can put your income onto the credit cards with debt and then use the debt tool for expenses like before. This effectively puts debt onto the debt tool while your income takes debt off of the other cards. The only downside is this transfers debt at the rate of your income.
Im trying to understand how putting my paycheck in satisfies payment? I had a $7500 line of credit with $80 payment due. I put my $2000 paycheck in there as a payment and i was left with $1920. It sounds like ur sayin i should still have my $80? I really wanna understand this cause it makes alot of sense...
I get paid every two weeks. First week put in all paycheck as a regular payment and it paid the $80. Second paycheck put in as principle cause no payment was due yet. ( paid bills from here all month)After one month payment went down to 65 because of what ur showing us because the balance was lower from the paychecks. So it works. I just dont see how im satisfying payment and keeping the $80 and $65. Because its a payment due on balance? Then id have more money on balance which would be great. Sorry this is so long.....
What if you can't pay over the amount due on your credit card. I tried to transfer 200 bucks to a credit card with a balance of 144.51 but couldn't pay the 200 payment. How can we transfer all of income if we can't deposit than what's owed
@@selfdirectedDONNELL Thank you for asking It is a Kroger elite Mastercard It will let me pay the remaining balance of 95.52 but the payment cannot exceed that amount. I've heard you say that getting a credit card at the bank where a person has their checking account is best so I may do that. Ive just messed my chances of getting any sort of credit it seems since I went crazy and got too many hard and soft pulls on my credit over the last month. I didn't realize the 782 credit score doesn't matter and a down payment for a. Auto loan is still needed. I'm looking for ways to borrow like 2000 dollars then pay it back and use that money as a down payment. Someone suggested start with a secured loan so I might do that. I appreciate you reaching bsvk out!! Awesome of you guys !!
This shows that you paid off $40k in credit card debt, but $20k of it was paid with a 401k loan. So you still have $20k to pay back in the end on the 401k loan, right?
Yes this was an actual client of mine who happened to have access to his 401k to be able to give himself a loan. Notice during the velocity banking process the loan payment is included. And yes he is paying back the loan but he is paying his 401k the interest. Versus paying the bank the interest. He became his own bank. There was no impact to his credit nor does the loan impact his DTI. All wins. Without the loan if I remember correctly it would have taken 19 months vs 12.
I've been doing just that for years. Not all banks or companies allow that, but a few that initially did not, had work arounds that we used to "Default" the payment to pull from the card
does this ONLY work if you have a HELOC because you cant pay credit card monthly payments with another credit card or mortgage or car loans or electrictricity bills. all require a bank account to pay those bills
Great question. We've done many case studies that answer your question. There's layers here. 1. You can pay with another credit card via over draft protection, BUT this is only a good option for some, not all. 2. You do not have to have a HELOC to utilize VB. You also don't have to pay all your bills from your debt tool. The important part is that the cashflow lives on the debt tool.
Also you failed to mention a few facts. Most 401k accounts have very strict rules on what you can use the loan money for. Second, you didn’t mention the interest on the 401k loan. Third, you’re not actually creating cash flow depositing your paycheck into your credit card account. Expenses are still $5,000. All you did was overpay your minimum payment.
Once you receive a 401k loan it can be used for whatever you want. The interest is included in the payment. The goal wasn’t to create cash flow, the goal was to use a dollar more than once which by doing so creates Cashflow. Overpaying on the card created room to be able to pay other debts from that card. I love your feedback, keep it coming.
@@selfdirectedDONNELL I stand corrected, the 401k loan can be used for any purpose. Paying down a credit card balance does not create cash flow and does not allow you to use the same dollar twice. It frees up available credit. If my limit is $10,000 and my outstanding balance is $10,000, I have no available credit. If I make a $500 payment, I now have $500 available credit that I can charge on the card. Or, if I don’t make a payment, I can use that $500 to directly pay for a purchase. See that? I actually have to use $500 of cash. Nothing has been created, expenses have just been shifted.
What do you mean? The 401k loan is reusable over and over again, doesn’t matter if it’s ever paid back in full. You will notice the loan payment is accounted for tho. Not sure what I’m missing. Thank your for your feedback regardless. Much appreciated.
...but you can't pay your mortgage using a credit card. You will have to deduct you mortgage amount from your income and what is left over is available to tackle the debt.
Thank you for your comment. On our live today, we discussed one way to use velocity banking for bills that don’t accept CC payments. You actually can pay your mortgage by credit card but it’s a very non traditional way of doing so. I get it tho, for those who can’t you are correct, pay everything else using the debt tool. Well do a breakdown for a mortgage and show a second way to pay by credit card every month on our next livestream (Sunday). We’d love for you to attend. Let me ask you this, what debt tools are you using?
@@selfdirectedDONNELL I am using a Discover card with 0% interest for 18 months. When the card is paid off I will apply for another 0% interest card to use to pay down the rest of my debt.
IN your example you show the debt vechicle having a payment due lets say $200 and I place my $1000 dollar check on the debt vechicle. I see how the $200 payment is satified but what I don't see is how I would still have $1000 to attack other bills. Why wouild I not have $800 available to me to attack the rest of my bills?
I believe you are correct, only amounts paid above the minimum are applied to the balance. Haven’t watched in some time but what you state makes sense to me. Curious does that mean the strategy is incorrect in how it’s used? Or do you think the strategy still works?
No debt tool is needed. After expenses, he has $1,000 left over each month. All he has to do is use that $1,000 to make extra payments on the credit cards and cars. He can do that from his checking account. Also, you keep saying your clients. Are you a licensed financial advisor?
Definitely not a FA or Tax Attorney, I am a licensed fiduciary and have been a retirement planner going on 12 years or so. No one is forced to do VB. There are thousands of ways to eliminate debt. This just happens to be one of them.
@@selfdirectedDONNELL The reason I asked is because you seem to be giving financial advice to clients, which is far different than being a licensed fiduciary. One of the differences is the knowledge of finances involved. A licensed financial advisor would understand that Velocity Banking as you are describing it in your content doesn’t actually provide any benefit versus simply using your checking account to pay down debts. A financial advisor would also use terms such as cash flow properly. I think your heart is in the right place. However, I think you should devote some to studying finance, taking the exams necessary and becoming a licensed financial advisor. I think you would do really good in that field.
@@confusedzentradi Great feedback. I make it 100% clear, I am not a financial advisor nor tax attorney and this is in no way, shape or form financial advice. This is all my opinion. I do not offer nor do I sell my time to teach people about velocity banking. Velocity banking is something I do understand and I offer this knowledge to you and others, for free. I have ZERO interest in being a Financial Advisor (and this is purposeful). I have the background to become one if I wanted. Here is what you learn about Financial Advising and Advisors, A series # license does not require you to have a fiduciary responsibility to your client. It requires your fiduciary responsibility to the Broker Dealer/Custodian FIRST... wouldn't you rather the client be the sole responsibility? We have done many videos on this as well. Watch "Retirement Gamble" when you have time. And listen to JP Morgan about fiduciary responsibility. Without being a Financial Advisor, I still have legal and licensed fiduciary responsibility. When you hear of me working with Clients, these are people who take advantage of Self Directed IRA/401Ks that I offer a well as cash value life insurance products I have the ability to offer as well. Any conversation I have about VB is solely my opinion of how it might work. There are so many details we don't have to be able to fully implement so a lot of assumptions have to be made. Lastly, my response to you will consistently be the same. You are right, You are correct, what you are saying is true. No one needs velocity banking. No one should be in debt. No one should buy things they can't afford. Everyone can pay bills with the cash in their checking. Many things can be true at the same time. You can use velocity banking to use the same dollar multiple times. You can use velocity banking to pay down debt faster, you can use a debt tool to pay a debt. ALL of this is true ALL at the same time.
@@selfdirectedDONNELL Based on your content, I do not believe you have the training or education required to be a Financial Advisor. If you did, you would know there is no benefit to the methods and information you provide regarding “velocity banking”. You are correct that my points are correct. You are correct that there are many ways to pay bills, etc. The point of contention is the value of using the methods you present. My point is they provide no benefit. At best they are a waste of time and effort compared to the normal process which I have outlined. At worst, your methods cause harm by incurring unnecessary fees and interest, in addition to the waste of time and effort. I realize all the velocity banking content creators read the same book. Any reasonably educated person in regards to finance would see the information for what it is. That’s why I encourage the creators to seek out more education. So they can understand the ideas that they profess as opposed to regurgitating objectively bad information and advice.
You can get started with velocity banking by downloading our free worksheet here: selfdirected.info/live Then book an appt for a free consult if you need help
There are many but the most impactful is if the debt tool is structured properly, that tool can be leveraged to generate income. It’s the becoming your own bank essentially. My greatest debt tool is my house I use the equity to fund my retirement.
Making direct payments gives you one use for your dollar. All the income on the tool is one use for the dollar, paying bills from the tool allows a 2nd use for the same dollar. Using the same dollar multiple times accelerates the pay off.
Sometimes using a credit card to do VB doesn’t make sense. Maybe it’s debt snowball first then as your Cashflow increases you can transition to using a credit card as you focus on getting your limit increased. But you can always pay expenses from your card using the limit you have just make sure you pay it off every month.
I am not a fan of Cap 1. I have 25+ years of credit history and experience and I can’t get a card above 1000 limit. I’d try credit unions. And sounds like you don’t have many trade lines. Your next basic purchase try financing. For instance the next time you need a tv try Best Buy and get a 12 month 0% financing to create another trade line. Build more history.
@@selfdirectedDONNELL You bout right. I want a 🆕 computer. But I just put a car 🚗 in my name. A year½ should boost my credit report. I just I shouldn't feel bad. By you having 25 ➕ yrs❗I'll keep that thought 💭 in mind. When I pay my 🚗 📴 🤝
Great question, the interest is accounted for when you put all your income on the debt tool. On the rest of the debt you are making the min payment so you are accounting for the interest there. Paying off faster allows you to pay less overall interest by using the chunking method. That help?
@@selfdirectedDONNELL "On the rest of the debt you are making the min payment so you are accounting for the interest there." ----that's where you said it. Don't you think it's a bit disingenuous to than k me for my feedback seeing as how you blocked me on my other account? Man up Donnell.
@@ConfusedTwo again, I have zero reason to block you on anything. That is effort that is not worth my time. Say what you need to say. There is nothing disingenuous about anything I do. Your perspective is just that yours. I don’t have an issue with adults having a conversation and sharing perspective. I respect yours, do you respect others as well?
So after month 5 when the card is paid off ($5080) you only have $920 left. You still have to pay your monthly bills ($4770)....where does that money come from.....and if you use your credit card you are never getting out of the cycle.....a bit of a scam if you ask me.....Prove me wrong...!!!!
Donnell stidhum i enjoyed your information so much I can’t stop watching it you and your wife are amazing, god send to help educate people, endless blessings, i would like your information contact to help me.
Thank you so much! I’d be honored to help. Just pick a time that works best for you here: selfdirected.info/calendar I look forward to meeting with you
![🔴 How Alex Paid Off $10K Easily Using Credit [Full Tutorial]](http://i.ytimg.com/vi/mLaedhsrtPM/mqdefault.jpg)
![🔴 How Alex Paid Off $10K Easily Using Credit [Full Tutorial]](/img/tr.png)
If this helped you, or you found it easy to follow along. Please do me a favor and let me know here in the comments. Your feedback is important to me and helps me understand if I'm representing this info in a way that makes it easier to understand... or not. Also, if you missed part 1, you can view it here: ruclips.net/video/0F7k4_76cWU/видео.html
Simple, wish I understood this a year ago when I first saw the process explained… you helped me to understand soooo much better, thanks bro!!
I'm just getting a mortgage, and I need some information to help me pay my mortgage down sooner.
@@coreyholden6934 there are many ways to address. Velocity banking is the concept but the debt to can be many different things you can use. I’d be happy to help.
@Donnell w. Self Directed Investment Strategies Yes, I would like information.
@@coreyholden6934 go to www.selfdirected.info and get on my calendar. You might have to removed the www if that link doesn’t work from the comment.
This format adds so much more value to me.
1. I watch on my phone, so I can actually see the calculations without pausing and zooming in.
2. Less is SO MUCH more! A lot less talk and a lot more action. Enough said.
3. The visuals and sound clips enhance the content and keep the teaching moving without being a distraction.
We appreciate that feedback so much! Thank you!
This is way more clear than a jumbled up white board and you’re so good at simplifying the concept. Thank you!
That feedback means a LOT to us! Thank you!
Amen!
It's something to watch this because I've pretty much been doing this for the past few years without realizing I've been using my credit card as a debt tool. I'm always using my credit card to pay for bills and other things. I never worry about monthly credit card payments because I'm always paying it off. I have an Amazon card through Chase Bank and a lot of my purchases end up being free because of the points I earn. A lot of good information in this bro.
I truly appreciate the feedback. If you need anything further I would be happy to support. I have other strategies that may help your financial future.
I hope you keep making videos like this, especially about IULs and LIRPs. The latter, I still don't understand.
This could actually be 4 or 5 separate videos! Masterclass in Money 101, 102, etc. Love the Velocity Banking concept.🎯
It if so the VB videos I've watched, this is hands down the best one. So simple and I was not confused at all by the terminology or the concept. The math/ numbers were simplistic. Thank sir
Thanks so much for that feedback!! Really appreciate you taking the time to leave it
This is the best video that explains Velocity banking I’ve seen. Thank you, please provide more.
Appreciate the feedback, are you don’t VB? Any tips and tricks?
i had to look at this several times to understand this but it was worth it. I am looking for my appointment.
We appreciate you hangin in there with us and taking the time to learn! 🙌🏽
Extremely helpful and the editing is absolutely amazing! These videos take a confusing typically dry subject matter and makes it interesting and entertaining while ensuring the proper information is conveyed. Keep up the good work!
King Red Black Cheetah Thank you for the feedback, we need it. If you would like to see more topics like this related to velocity banking, would be glad to do it. Don’t forget to subscribe and share. If support is needed by contact info is located below the video.
Hands down the best explanation I’ve watched on velocity banking on RUclips.
Really appreciate this feedback. For years I assumed there were “enough” people covering this topic and I didn’t need to add to the noise. Comments like this help me understand that my style is making a difference for folks. Really appreciate you taking the time to watch and comment 🙏🏽
This was the best example I ever seen online…. 👏🏽👏🏽👏🏽👏🏽👏🏽 those numbers where what I’m going through but I don’t have an 401k sd.
The 401k doesn’t really make a diff. Just adds more time if you don’t have a lump sum. The process is the same tho. Appreciate the feedback
You can say recall instead of remember. Also I love how you explain this system.
Thanks so much for the feedback. I’ll try to remember to swap that word 😂👊🏽
Great video my brother. I started using velocity banking about 4 months ago and I love it. I didn't have many bills but it helped me stop my bad habits and start a new process of thinking. I used it to remodel my house and pay my car off. This is one of the best videos I have seen studying velocity banking. You made it simple for people to undrerstand.
Glad you appreciated it. And thank you for the feedback. There are many velocity banking tools. What do you use?
This really helped me see a little clearer what I have been trying to understand for several months about Velocity banking. I am 75 years old have 12 credit cards that total $32k in CC debt, no mortgage and no HELOC or PLOC. I do have a car payment and have no clue where to go from here. I need some help trying to map out my strategy to pay off as much of this as I can before I leave this world. My husband is a veteran with 4 brain tumors and dementia and we are struggling to get by. Thank you for helping so many to hopefully see how this works to take and get back on an even keel.
You gave me something to think about. I never thought about paying my my mortgage off this way.
Glad I could help. There’s s till a lot of people who are unaware that options like this exist. Please like, share and subscribe to help me get this info in front of more people, Your support is greatly appreciated.
Wow ! Incredible video!! The editing is spectacular
Appreciate the feedback! Truly! Glad you enjoyed .... the editing 😂🤣😭😭! More to come 😎
Brilliant strategy, this is what we will hopefully be teaching in our public schools in the future😊 also like the different ways you’re breaking down the steps. More people need to see this video!
My apologies for just now responding to this comment. I must have missed this notification. I do enjoy these topics and would happily help whoever needs. Please share and thank you for the feedback.
A great presentation. Perhaps it’s because I’ve seen others that did not quite achieve your level of professionalism. Ideas were clear and the accompanying graphs, charts and animations helped to support the numbers. I’ve started on my own, but I will make contact. Thanks
Thanks for that feedback. Really appreciate it. I'm glad to hear you have started, looking forward to hearing what you accomplish. I also teach advanced strategies using this same concept, just different vehicles. We go live twice a week here on this channel, and that's the best place to connect and be able to discuss this strategy. Hope you'll check us out soon.
Love your illustrations! So glad you do not use the white board! You make velocity banking easy to understand! Thanks!
Really appreciate it, I’m different from others who do VB. I focus on the process and structure I don’t dive deep into the numbers. I believe if you understand the process the numbers fall in line.
Man!! I tried to grasp this concept via other channels and NEVER HAS IT BEEN MORE clear this this current video.
Thank u
Appreciate the feedback, are you current using or trying yo use VB? If so, how is it going? What’s a challenge you are running up against?
@@selfdirectedDONNELL most welcome.. actually i wanted to start in july.. was trying to understand hoe it works first prior to applying it. I was also seeking to know if it can be applied in Canada ( my location ) but i dont see why not as its a basic unique strategy using revolving debt
Super helpful, I been listening to another You Tuber and your way of explaining it makes much more sense. I enjoyed your videos.
Really appreciate that Iris! Thanks for tuning in!
Very good information and I hope it works because I am going to give it a try. Now my question is will this work on a HELOC?
ABSOLUTELY!! Both 1st and 2nd Position HELOCs.
Was directed here by my sister this is exactly what I was looking for!!
Mynd Tha Villain Glad we could help. Let me know how I can further support you in your journey. Don’t forget to subscribe and share. Contact info is below the video.
I love it when people say what about emergencies. when they have emergencies now they dont have money for it.
Just starting out on my journey, THIS WAS HELPFUL. Will definitely be adding some “velocity” to my financial strategy and be utilizing it streamline. I don’t have that much debt to clear but I have a couple of tools that will come in quite handy in regards to trouble spending those dollars 😎
We appreciate the feedback. We are starting back from basics again this week. It would be a great time for you to join us live and get some questions answered
@@selfdirectedDONNELL I’ll be sure to get those notifications set and do just that! 🫡🙏🏾
Feel free to get on the calendar as well.
I subscribed as soon as you said I know my Cash people are yelling like wait what about emergencies?! LOL As soon as you change and embrace your Mindset that your Savings will be on your Credit Cards, everything falls into place. Loved this! 🥰🥰🥰
Thanks so much for watching! Those who get it, get it. Hopefully more will learn and it’s my goal to help educate others to see the value in strategizing… work smarter, not harder. Glad you’re on board 👊🏽 and thanks so much for the sub!
@@selfdirectedDONNELL of course youre welcome and have a wonderful weekend!
Awesome video! Very well done! The big question for me is: If 100% of the income is paid to the credit card, where are the mortgage, auto loans and 401k loan paid from? Would you advise putting 100% of income onto the debt tool, but then cash transfering back to checking account. Other than this confusion on my part, you've really provided a great explanation and visual!
Thanks for that feedback! I recently made another video showing how to pay a mortgage with a credit card or line of credit.
You can watch the edited version here: ruclips.net/video/7lbF4aQV2HE/видео.html
Or the full length livestream: ruclips.net/user/liveh5AkMcKEIk0?feature=share
We go live twice a week Wed & Sun 6pm PST. We’d love for you both to join us. It’s the best time to ask questions and get detailed answers.
Thank you about the overdraft process. I also have bank of america and that was the final piece to automate everything on my end.
Happy to help. Have that ability makes a big difference.
This video explained the process better than what I’ve watched! Thanks
Glad it could assist. What specifically did you like?
Excellent video. This may be the best explanation of velocity banking on RUclips.
And that’s the best comment I’ve received on any video I’ve made. Please share, my goal is simply to educate. Check out this new series on compound interest.
Watched different influencers regarding this and was confused but you explained it a little better. The only thing, what do you do if you have several balances on different CC? Do you have to start with no debt on any CC before you can start Velocity banking? You borrowing on your 401k means your take home is less because you have to pay back the loan. Make it make sense.
You focus on one card and just pay the min on the remainder cards, once the one card is under control then you transfer the balance from the other cards. As it relates to the 401k loan, he is using a self directed 401k loan. So he has full control and paying the loan back is included as well. But his income is not impacted. Watch video 1 related to velocity banking it explains that a little better.
Good video! I’m about to begin my velocity banking adventure.
I did call my mortgage company today and they do not allow Credit Card payments. I do have a PLOC that I will be using. Actually 3 PLOCs.
Thank you for this great explanation!
Very easy to understand with you illustrations.
I really appreciate that feedback. It's important to know if I'm easy to understand or if I need to try a new approach. Everyone should have access to this information. Is there anything in particular you would like me to cover in a future video? We livestream twice a week and will be covering velocity banking, it's a great way to get your questions answered fast... with a breakdown.
I watched this right after the first video and I feel like I've been to a great course. The velocity banking that you talk about, I've never heard of and hadn't considered until hearing it from you.
Great content, very valuable info, and use of my time. The video game graphics are hilarious!
Last but not least the fact that this can be done on all income levels is really awesome. Looking forward to more videos and taking to you in person.
More content coming. Thank you for the feedback. This exact concept helped me change things financially for my family many years ago. And as you mentioned this fits everyone. I have several tools that can change the financial future of all income levels. Let’s talk.
Thank you, Donnell, I have watched several videos about Velocity Banking and Infinite Banking. You did an excellent job of including visuals showing how Velocity Banking eliminates credit card debt. Your illustrations show that your client is sticking to a budget, correct? Also, how do you account for monthly interest charges for the credit card your client is transferring monthly income and using like a checking account?
Appreciate the feedback, yea I referenced that in a live we did a few weeks back. Most people who educate on VB don’t account for the interest accruing on the Debt Tool. Mainly because it’s hard, the worse case tho is it may add a month or two to your process. So most justify it as negligible because your are putting all your income on the debt tool which also means you can ignore the monthly payment due cause your income satisfies that paynent. Does that make sense?
Great 👍 explanation one of the best videos
Glad it was helpful! Thanks for the feedback
Enjoyed the video, going to watch it again and share it with my network. Thanks for investing in helping people be successful financially.
Thank you for the feedback and share. Don't hesitate to ask any questions you might have here as well. I am here for the community.
Keep this education material coming.
Great video, Donnell. This is a game changer.
Glad you liked it. Let me know if you need any assistance.
Thank you for the most clear presentation. I must have missed how he paid back the 401K loan?
It’s wrapped in there, been years since I watched the video, but I know it’s included. Appreciate your feedback. Hope to see you on our lives.
This was helpful, especially the diagram
Appreciate the feedback. Let me know if I can be of any assistance.
Excellent information thank you
So glad it was helpful. We really appreciate the feedback. Thanks for tuning in!
Thanks for the content. Very intresting . I need to.watvh.it over again. I git list somewhere in the udlke off the video. Is there an app to do this?
No App but I would be happy to help. The concept can be done w many debt tools this video just describes one type.
We are about to launch another free resource on our next live. It’s a spreadsheet to help w/ velocity banking. I think you’ll love it
Much valueable info thanks
Great information!
Thank you for the feedback.
Absolutely helpful!
I appreciate your feedback! Thanks for taking the time to watch and comment
Great info the black community needs to hear 💪🏾
I missed this last month, my apologies. The feedback is much appreciated. I do this for those who need it. Please share!!
Haha😂 @12:02 DEBT TOOL KOMBAT!!!!! 🎶
😂
Best video on this
Thank you for the feedback, would be happy to assist w any questions and don’t forget to share with others.
Thank you for the knowledge
My pleasure, what did you benefit from the most?
Wow the light bulb just went off for me. I have never heard of this. Thanks for the video very interesting
I appreciate you taking the time to tune in. The feedback is helpful. If you have any questions, don’t hesitate to ask.
If the debt tool is a credit card some banks will not accept them for payment. Explain the different type of debt tools.
Helocs, PLOCs, Policy loan, there are also credit companies that will allow you to pay debt with ach for a fee. The way I did it was I used a credit card as the overdraft acct for one of my checking accounts so when a bill was paid and went to draft from checking, it pulled from the credit card.
This was it right here🤞🏽
Thank you for the feedback.
You need anything, selfdirected.info
Thank you for this video, very important to me. I have a question: what about the interest? you didn't add it to the cc debt?
What interest specifically? While it’s been a few years for this video, do you mean the debt tool interest? If I remember correctly you are probably right because when I put the income on the debt tool it satisfies the min payment and makes the impact of the interest inconsequential to the outcome. But don’t quote me, it’s been quite a while. Thanks for the feedback. You should see tomorrows VB example, will be fun.
@@selfdirectedDONNELL Thank you for your response.
Great info!!
Thank you for the feedback.
Donnell, have you heard anything about credit card companies lowering credit limits after people make large monthly payments? I have watched other RUclips channels explaining Velocity Banking, and have heard warnings to make micropayments to avoid having my limit lowered on the credit card I am transferring my income to pay it down.
If you are over leveraged banks are watching you closely, and yes I know of banks cutting your limits when debts have been paid. I am really not a VB guru, I just happen to understand how to use it. I’m more focused on what you due w the cash flow when the debt is eliminated. Where do you put your money then? How about a place that makes its own money that you can leverage and not have to rely on banks or credit cards…Thoughts?
I think one of the things people (raises hand ...) get stuck on is seeing you're paying things like rent and / or mortgabes with a CC used as a debt tool. Nromally this is paid via checking accounts. Do I assume a cash advance is taken back out into the checking to pay a car loan or mortgabe? I've watched a few other videos where they dump all of their money into a CC debt tool EXCEPT what is needed for things like a car loan or mortgage. Can you please clarify how this person did this? .Thanks !
Never mind! You answered this at the end! :)
I made a video showing how you can do this. It’s not required, but it’s possible
thankyou for this video - question - how are you using that credit card (as a debt tool) to pay off those other credit cards? i thought you cant use credit cards to pay off credit cards??? thanks
There are many tools that make this possible. Because of the way my checking acct is structured, I have overdraft protection at no cost. So I link a ccd to my checking, keep it empty and it overdrafts to the ccd.
And if you really want your mind blown. I now use my home as my debt tool. So now instead of a ccd, my home is my debt tool. Structured still the same. (Video coming soon)
Question.. what happens if you have more than one high balance credit card? Which one should be used as the debt tool I assume the one with the lowest balance. Also once you pay off the other credit cards or transfer the balance what do you do with them? Don’t they need to stay open and use them so they creditor won’t close them?
Debt tool: highest limit and lowest interest rate.
All other cards you can use to pay bills with them pay in full to the credit card. They won’t sit stand any that way and will continue to build credit. If you have too many, or annual fees, might need to let them go.
You have annual fees?
I try to charge after my credit card close date - so I can roll forward the amount due by one month.
Closes on the 18th, I put new household expenses on the card on the 19th.
That’s a great strategy. 👊🏽 How long have you been implementing velocity banking?
Wouldn't charging right before the closing date reduce the amount of interest? .. or right before you transfer your paycheck?
@@vdeblois1352 You are correct. When you pay off your credit card matters and effectively using the Closing date versus the Statement date can have a significant impact. You make a great point!!
Good morning Mr. Stidhum,
My name is Gene and I am self-employed. My question is how can I implement the "velocity banking strategy" if I do not have set paydays as to when my invoices are paid? I am very much interested in getting my finances in order and would appreciate any information that you may provide.
Sincerely,
Gene
Use the average and as long as the income lives on the debt tool, it should average out.
I have a monthly income of $ 2048 and a $12,000.00 car loan and my credit card limit is $1500.00 with no outstanding balance to pay on the card. How do I tackle my card loan payment?
The most important factors of this equation is cashflow and the interest rate on the card and car loan . If you’d like, you can book a free consult by visiting selfdirected.info/calendar and we can go through your numbers together
How does one use this method if you're an entrepreneur and income isn't always the same monthly??
It’s actually perfect for this case. We use “when you get your paycheck” as one event, but if it’s multiple events in the month, same process. This is our case, actually as our income fluctuates. That’s why we are so confident in this strategy being a part of our overall system
@@selfdirectedDONNELL thanks for the reply. I was trying to get your free worksheets to take a closer look, but something was wrong with the link. I'll try again.
Can you recommend any third party institutions I can use to make credit card purchases for non traditional purchases such as rent payments? Trying to setup all my creditor payments thru my credit card.
Thanks
Anthony
It varies. The easiest way is to see if your bank offers overdraft protection. If they do they normally will allow you to link a credit card to your checking account and at no charge allow any overdrafts to be drafted from the credit card. This is how I used to do it. There are various ways to handle this tho.
Have you heard of the new BILT credit card that earns you points for paying your rent, and other purchases, and with no fee for using it to pay your rent? I was recently approved for it, and I like it so far. It pulls from experian
Gracias. Good video,
Denada… that’s about all I got for a Spanish response LOL. How is your VB journey going? Any tips you can share?
I have a 1500 CC that I haven’t used yet. And I plan on using the credit card to make balance transfers to pay off an auto loan faster… my income is around 5500 an month. Is it ok to put 3700 on top of the CC each month?
Pay attention to the cost as well tho, meaning if you are using a 17% ccd plus 3% transfer fee to pay off a 8% Car loan, be careful. I can run a scenario where that makes sense, I can also run one that says maybe it doesn’t. Doing VB w a credit is great when you can pay most bills from the card, and the card you use as an interest rate less than the bills you are addressing. I like to let the math determine what should happen.
Do you have a video for how to save cash for a home the fastest way?
Not specifically, but the fastest way is to free up cash flow. So that’s any VB video. The more cash flow the more you have for a home.
The only question that arises is, the left over 10k on the other credit cards. This scenario assumes the ability to make the min payment to the other cards, using the high limit CC. What if you can't pay a CC with another CC?
I did another video where sometimes you just can’t, and when that is the case, you have to leave a certain amount in your checking to address those expenses that can’t. The key is to do so where applicable in my opinion.
Question: Do you think this is idea to start if the person is going on vacation in the next 30 days (September 11, 2023) I would love to go in a better financial situation I have 2100 in a debt tool…wondering if I should start this process this week? I just don’t understand how I would have tangible money or would I do everything virtually? Ughh I need help…let me watch more videos
It’s sounds like there may be an opportunity to digest more content related to VB. The last thing you want to do is jump into anything if not ready. There is a lot of content out there by a lot of great people. In my humble opinion, wait till you have fully grasp the concept. Cause not understanding could put you in a worse financial situation.
@@selfdirectedDONNELL ok thank you I will continue to study your videos. I will stay on this platform because I don’t want to confuse myself and I’ve been praying for financial stability and wisdom with my income. So thankful for you and your wife! New subscriber👏🏾
More examples like this BUT with using JUST a credit card that ALREADY has a balance on it. That would be helpful.
You got it it. In the meantime, the example we covered on our last live had a CC balance. If you want us to cover your exact situation, just go to selfdirected.info/live and send us your figures. We will change your name, but this way, you'll get a FREE step-by-step guide and won't have to try and figure it all out alone. Thanks for taking the time to leave a comment. Really appreciate the feedback
What delta between APRs in a mortgage and HELOC is too big for velocity banking to work?
Hey
I’ve got a $15000 credit card and I wanna start chunking the mortgage doing this velocity banking method.
How much of the $15000 would you use ??
I was thinking about $8000.
Your thoughts
Kind regards Karl 😊
Congratulations, there are many theories about what you should chunk. I believe it’s math related, what you should chunk depends on your Cashflow. Another rule of thumb is no more than 66%. So your 8K seems good. Good luck.
I love this comment. Do you mean a 5% mortgage is better than a 10% line of credit? Please share w me how, if that is what you are implying.
@traybern Thank you, you mind if I use this comment to explain in an upcoming live? I would be happy to show you. There is so much you have been conditioned to believe as it relates to banks. It’s not your fault. But please keep following. I appreciate you.
@@selfdirectedDONNELL 5% is better than 10% because of simple math. Why is that so hard to understand? Here is an example:
$10,000 at 5% = $500 interest over a year. $10,000 at 10% = $1,000 interest over a year. Easy math Donnell.
To avoid the balance transfer fee you can put your income onto the credit cards with debt and then use the debt tool for expenses like before. This effectively puts debt onto the debt tool while your income takes debt off of the other cards. The only downside is this transfers debt at the rate of your income.
You wouldn’t actually have a “debt tool” if you did that.
Im trying to understand how putting my paycheck in satisfies payment? I had a $7500 line of credit with $80 payment due. I put my $2000 paycheck in there as a payment and i was left with $1920. It sounds like ur sayin i should still have my $80? I really wanna understand this cause it makes alot of sense...
Is the 7500 the limit or the balance, let’s start there.
@@selfdirectedDONNELL both
I get paid every two weeks. First week put in all paycheck as a regular payment and it paid the $80. Second paycheck put in as principle cause no payment was due yet. ( paid bills from here all month)After one month payment went down to 65 because of what ur showing us because the balance was lower from the paychecks. So it works. I just dont see how im satisfying payment and keeping the $80 and $65. Because its a payment due on balance? Then id have more money on balance which would be great. Sorry this is so long.....
HAAAIIDDEUUUKKKEENN!!
What if you can't pay over the amount due on your credit card. I tried to transfer 200 bucks to a credit card with a balance of 144.51 but couldn't pay the 200 payment. How can we transfer all of income if we can't deposit than what's owed
What card is it? I’ve not heard of a card not allowing you to pay off your balance. Or make a bigger payment. Curious what card you have
@@selfdirectedDONNELL
Thank you for asking
It is a Kroger elite Mastercard
It will let me pay the remaining balance of 95.52 but the payment cannot exceed that amount.
I've heard you say that getting a credit card at the bank where a person has their checking account is best so I may do that. Ive just messed my chances of getting any sort of credit it seems since I went crazy and got too many hard and soft pulls on my credit over the last month. I didn't realize the 782 credit score doesn't matter and a down payment for a. Auto loan is still needed. I'm looking for ways to borrow like 2000 dollars then pay it back and use that money as a down payment. Someone suggested start with a secured loan so I might do that.
I appreciate you reaching bsvk out!! Awesome of you guys !!
This shows that you paid off $40k in credit card debt, but $20k of it was paid with a 401k loan. So you still have $20k to pay back in the end on the 401k loan, right?
Yes this was an actual client of mine who happened to have access to his 401k to be able to give himself a loan. Notice during the velocity banking process the loan payment is included. And yes he is paying back the loan but he is paying his 401k the interest. Versus paying the bank the interest. He became his own bank. There was no impact to his credit nor does the loan impact his DTI. All wins. Without the loan if I remember correctly it would have taken 19 months vs 12.
Hi how do u pay your mortgage with a credit card
We cover that in this video: ruclips.net/video/7lbF4aQV2HE/видео.htmlsi=agrCsAL9KKl_F6za
So you can pay utilities, your mortgage and other CCs with a CC?
I've been doing just that for years. Not all banks or companies allow that, but a few that initially did not, had work arounds that we used to "Default" the payment to pull from the card
does this ONLY work if you have a HELOC because you cant pay credit card monthly payments with another credit card or mortgage or car loans or electrictricity bills. all require a bank account to pay those bills
Great question. We've done many case studies that answer your question. There's layers here.
1. You can pay with another credit card via over draft protection, BUT this is only a good option for some, not all.
2. You do not have to have a HELOC to utilize VB. You also don't have to pay all your bills from your debt tool. The important part is that the cashflow lives on the debt tool.
Month 5 🤯
Also you failed to mention a few facts. Most 401k accounts have very strict rules on what you can use the loan money for. Second, you didn’t mention the interest on the 401k loan. Third, you’re not actually creating cash flow depositing your paycheck into your credit card account. Expenses are still $5,000. All you did was overpay your minimum payment.
Once you receive a 401k loan it can be used for whatever you want. The interest is included in the payment. The goal wasn’t to create cash flow, the goal was to use a dollar more than once which by doing so creates Cashflow. Overpaying on the card created room to be able to pay other debts from that card.
I love your feedback, keep it coming.
@@selfdirectedDONNELL I stand corrected, the 401k loan can be used for any purpose.
Paying down a credit card balance does not create cash flow and does not allow you to use the same dollar twice. It frees up available credit. If my limit is $10,000 and my outstanding balance is $10,000, I have no available credit. If I make a $500 payment, I now have $500 available credit that I can charge on the card. Or, if I don’t make a payment, I can use that $500 to directly pay for a purchase. See that? I actually have to use $500 of cash. Nothing has been created, expenses have just been shifted.
Hello. Do you do consultations?
Cost nothing to consult with me here is a link to my calendly. Please be specific about what you need. calendly.com/selfdirected-strategies
Absolutely www.selfdirected.info
Sorry try this one selfdirected.info
@@selfdirectedDONNELL
Thank you. Going to check it out now. I’m in serious need of a plan.
@@selfdirectedDONNELL
I emailed and texted a week ago but no response yet
U notice he haven't said anything about if the 401k loan is paid off
What do you mean? The 401k loan is reusable over and over again, doesn’t matter if it’s ever paid back in full. You will notice the loan payment is accounted for tho. Not sure what I’m missing. Thank your for your feedback regardless. Much appreciated.
...but you can't pay your mortgage using a credit card. You will have to deduct you mortgage amount from your income and what is left over is available to tackle the debt.
Thank you for your comment. On our live today, we discussed one way to use velocity banking for bills that don’t accept CC payments. You actually can pay your mortgage by credit card but it’s a very non traditional way of doing so. I get it tho, for those who can’t you are correct, pay everything else using the debt tool.
Well do a breakdown for a mortgage and show a second way to pay by credit card every month on our next livestream (Sunday).
We’d love for you to attend.
Let me ask you this, what debt tools are you using?
@@selfdirectedDONNELL I am using a Discover card with 0% interest for 18 months. When the card is paid off I will apply for another 0% interest card to use to pay down the rest of my debt.
IN your example you show the debt vechicle having a payment due lets say $200 and I place my $1000 dollar check on the debt vechicle. I see how the $200 payment is satified but what I don't see is how I would still have $1000 to attack other bills. Why wouild I not have $800 available to me to attack the rest of my bills?
Because his math doesn't work.
I believe you are correct, only amounts paid above the minimum are applied to the balance. Haven’t watched in some time but what you state makes sense to me. Curious does that mean the strategy is incorrect in how it’s used? Or do you think the strategy still works?
Always right on time sir. Thank you for your continued support. @ConfusedTwo
Please show more examples!
Is there a specific scenario you would like to see? As I mentioned you have to know your numbers. I can do one on your specific numbers.
No debt tool is needed. After expenses, he has $1,000 left over each month. All he has to do is use that $1,000 to make extra payments on the credit cards and cars. He can do that from his checking account. Also, you keep saying your clients. Are you a licensed financial advisor?
Definitely not a FA or Tax Attorney, I am a licensed fiduciary and have been a retirement planner going on 12 years or so. No one is forced to do VB. There are thousands of ways to eliminate debt. This just happens to be one of them.
@@selfdirectedDONNELL The reason I asked is because you seem to be giving financial advice to clients, which is far different than being a licensed fiduciary. One of the differences is the knowledge of finances involved. A licensed financial advisor would understand that Velocity Banking as you are describing it in your content doesn’t actually provide any benefit versus simply using your checking account to pay down debts. A financial advisor would also use terms such as cash flow properly. I think your heart is in the right place. However, I think you should devote some to studying finance, taking the exams necessary and becoming a licensed financial advisor. I think you would do really good in that field.
@@confusedzentradi Great feedback. I make it 100% clear, I am not a financial advisor nor tax attorney and this is in no way, shape or form financial advice. This is all my opinion. I do not offer nor do I sell my time to teach people about velocity banking. Velocity banking is something I do understand and I offer this knowledge to you and others, for free.
I have ZERO interest in being a Financial Advisor (and this is purposeful). I have the background to become one if I wanted. Here is what you learn about Financial Advising and Advisors, A series # license does not require you to have a fiduciary responsibility to your client. It requires your fiduciary responsibility to the Broker Dealer/Custodian FIRST... wouldn't you rather the client be the sole responsibility? We have done many videos on this as well. Watch "Retirement Gamble" when you have time. And listen to JP Morgan about fiduciary responsibility. Without being a Financial Advisor, I still have legal and licensed fiduciary responsibility. When you hear of me working with Clients, these are people who take advantage of Self Directed IRA/401Ks that I offer a well as cash value life insurance products I have the ability to offer as well. Any conversation I have about VB is solely my opinion of how it might work. There are so many details we don't have to be able to fully implement so a lot of assumptions have to be made.
Lastly, my response to you will consistently be the same. You are right, You are correct, what you are saying is true. No one needs velocity banking. No one should be in debt. No one should buy things they can't afford. Everyone can pay bills with the cash in their checking. Many things can be true at the same time. You can use velocity banking to use the same dollar multiple times. You can use velocity banking to pay down debt faster, you can use a debt tool to pay a debt. ALL of this is true ALL at the same time.
@@selfdirectedDONNELL Based on your content, I do not believe you have the training or education required to be a Financial Advisor. If you did, you would know there is no benefit to the methods and information you provide regarding “velocity banking”. You are correct that my points are correct. You are correct that there are many ways to pay bills, etc. The point of contention is the value of using the methods you present. My point is they provide no benefit. At best they are a waste of time and effort compared to the normal process which I have outlined. At worst, your methods cause harm by incurring unnecessary fees and interest, in addition to the waste of time and effort.
I realize all the velocity banking content creators read the same book. Any reasonably educated person in regards to finance would see the information for what it is. That’s why I encourage the creators to seek out more education. So they can understand the ideas that they profess as opposed to regurgitating objectively bad information and advice.
@@cmoss11467 why would you be blocked? That’s weird.
Doesn't he have to pay one more mont after month 5 because he still needs to pay bills on month 5?
He does absolutely
How do i start
You can get started with velocity banking by downloading our free worksheet here: selfdirected.info/live
Then book an appt for a free consult if you need help
What's the benefit of a debt tool; instead of direct payments toward debt on credit card.
There are many but the most impactful is if the debt tool is structured properly, that tool can be leveraged to generate income. It’s the becoming your own bank essentially. My greatest debt tool is my house I use the equity to fund my retirement.
@Donnell w. Self Directed Investment Strategies thx for the response sir,I mean specifically the use of the credit card as a " debt tool"
Making direct payments gives you one use for your dollar. All the income on the tool is one use for the dollar, paying bills from the tool allows a 2nd use for the same dollar. Using the same dollar multiple times accelerates the pay off.
How can I do this with only a $500.00 cc limit? Can I put my income (3k a month) on this card?
Sometimes using a credit card to do VB doesn’t make sense. Maybe it’s debt snowball first then as your Cashflow increases you can transition to using a credit card as you focus on getting your limit increased. But you can always pay expenses from your card using the limit you have just make sure you pay it off every month.
I keep reading low usage, why I got denied, from capital one, discover❗❗
Do you currently have a cc and applying for another or is this your first one?
@@selfdirectedDONNELL This is my first credit 💳 with capital one. Three year's and counting with capital one 💯
@@selfdirectedDONNELL As far as I've got with capital one is a $100 credit limit increase. Which I turned down 👇.
I am not a fan of Cap 1. I have 25+ years of credit history and experience and I can’t get a card above 1000 limit. I’d try credit unions. And sounds like you don’t have many trade lines. Your next basic purchase try financing. For instance the next time you need a tv try Best Buy and get a 12 month 0% financing to create another trade line. Build more history.
@@selfdirectedDONNELL You bout right. I want a 🆕 computer. But I just put a car 🚗 in my name. A year½ should boost my credit report. I just I shouldn't feel bad. By you having 25 ➕ yrs❗I'll keep that thought 💭 in mind. When I pay my 🚗 📴 🤝
What about the interest the cards are charging?
Great question, the interest is accounted for when you put all your income on the debt tool. On the rest of the debt you are making the min payment so you are accounting for the interest there. Paying off faster allows you to pay less overall interest by using the chunking method. That help?
@@selfdirectedDONNELL This is false. When you make the minimum payment, it does not prevent interest from being charged on the rest of the balance.
@@ConfusedTwo don’t think I said it interest stopped being charged, but as always thank you for your feedback. How would you do this differently?
@@selfdirectedDONNELL "On the rest of the debt you are making the min payment so you are accounting for the interest there." ----that's where you said it. Don't you think it's a bit disingenuous to than k me for my feedback seeing as how you blocked me on my other account? Man up Donnell.
@@ConfusedTwo again, I have zero reason to block you on anything. That is effort that is not worth my time. Say what you need to say. There is nothing disingenuous about anything I do. Your perspective is just that yours. I don’t have an issue with adults having a conversation and sharing perspective. I respect yours, do you respect others as well?
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So after month 5 when the card is paid off ($5080) you only have $920 left. You still have to pay your monthly bills ($4770)....where does that money come from.....and if you use your credit card you are never getting out of the cycle.....a bit of a scam if you ask me.....Prove me wrong...!!!!
Instead of proving you wrong, would rather know if you agree w the velocity banking strategy or not? Do you believe it’s possible?
Not a good idea to borrow.
If one is irresponsible - than no.
Why do you say that? Leverage is how wealth is made.
Two steps forward and one step back, repeat
Right it’s really about Cashflow, getting more use out of it versus sitting in your checking. Do you have any VB advice you could share?
Donnell stidhum i enjoyed your information so much I can’t stop watching it you and your wife are amazing, god send to help educate people, endless blessings, i would like your information contact to help me.
Thank you so much! I’d be honored to help. Just pick a time that works best for you here: selfdirected.info/calendar
I look forward to meeting with you