8:11 "What changed?" What changed is he will be paying a much higher interest rate on the $10K he borrowed to pay down the mortgage. It makes no sense. If he wants the benefit of "paycheck parking," he already has over $30K in four LOC's to work with. Adding to them to pay down a lower cost mortgage is not a good move.
In defence of C.J. i would argue that 1) The 210,000 is probably a mortgage that he is using as an example in this video, which would be an amortised LOAN. 2) Hence, using 10-11,000 from the credit card and moving the mortgage payment schedule forward 3 years is eliminating way more interest from the mortgage than what you pay in interest on the credit card. But similarly, ANY loan (car, boat, house etc...) that is on a fixed interest and payment schedule is amortised where as a credit card is simple interest at a daily rate.
@@richardhurst8109 Yeah, that's the way the VB hucksters present it, but it simply isn't true. You can't come out ahead borrowing at a higher rate to pay down debt at a lower rate. There is no math in the known universe where that can happen, and that's be shown again and again on different channels. But believers gotta believe. As mentioned earlier, the ONLY (usually trivial) financial benefit of VB comes from paycheck parking. He can already do that with his $30K+ LOC debt.
1:43 Brilliant question!
8:11 "What changed?" What changed is he will be paying a much higher interest rate on the $10K he borrowed to pay down the mortgage. It makes no sense. If he wants the benefit of "paycheck parking," he already has over $30K in four LOC's to work with. Adding to them to pay down a lower cost mortgage is not a good move.
In defence of C.J. i would argue that 1) The 210,000 is probably a mortgage that he is using as an example in this video, which would be an amortised LOAN. 2) Hence, using 10-11,000 from the credit card and moving the mortgage payment schedule forward 3 years is eliminating way more interest from the mortgage than what you pay in interest on the credit card.
But similarly, ANY loan (car, boat, house etc...) that is on a fixed interest and payment schedule is amortised where as a credit card is simple interest at a daily rate.
@@richardhurst8109 Yeah, that's the way the VB hucksters present it, but it simply isn't true. You can't come out ahead borrowing at a higher rate to pay down debt at a lower rate. There is no math in the known universe where that can happen, and that's be shown again and again on different channels. But believers gotta believe.
As mentioned earlier, the ONLY (usually trivial) financial benefit of VB comes from paycheck parking. He can already do that with his $30K+ LOC debt.
Can you do a breakdown without so much of the adlivs and crunch the numbers more ….
Cj, but money has to come out
Exactly... what is left is what pays off the line. We help people with this all the time. I would love to help you as well: calendly.com/creditwiz
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