I swear to God!! & what's crazy is that lending institutions respect you more that way cause they see you know how to properly use money. Helps a lot of you wanna get some decent capital to start or run a business too.
Christy, you're a saint and a sweetheart. I wish I would have found this back when I was struggling. I had to do it the old-school way because I didn't know any better. I still watch this stuff even though I gave DEBT the middle finger several years ago now. Watching from Ontario, Canada.
Thanks to your videos I have obtained a heloc and did so well I got a ploc at the same bank. I’m paying off thousands of dollars, avoiding so much interest, and plan to payoff my mother’s car loan for her soon! Trying to pay forward the blessing of VB!
Love this method, I’ve been able to pay off smaller credit card balances, was able to get a heloc, put on a new roof, replaced a retaining wall that collapsed, now slowly paying down my mortgage
I'm trying this right now. I keep getting denied a HELOC (cosigned for daughter's car 🙄) so I started putting everything on cc's and use the cash to pay chunks to the mortgage interest. Then pay down the cc debt and do it again. I don't know if I'm saving any money but I need to pay my mortgage down until they approve me for a HELOC and then do VB in a better way. Thanks for all your teaching. 🤩
Thank you so much for sharing your knowledge, I’m on disability and trying to learn to live a a very low budget and pay off my credit cards, I’d enjoy talking with you to help me with my journey, but I’m gonna take what I’ve learned from this video and try to, thank you , I know I’m just a nobody but I’m thankful for what you shared .
@@VanntasticFinances If in his current situation his cashflow is just $1,000 how long will it take him to come out of this $100k debt with your strategy?
I’m trying to get married to my fiancé in the LORD’s will . 41 Never been married, never bought a house , never saved money, and never made much money. I never learned much about money. This right here was like a coming into the Light of Jesus , seeing the sin that has so easy beset me, and learning how to trade it for ……. Glory. To God be all the glory
I've watch a number of your videos. I like this one a lot. You're a humble and patient teacher. Even if Dave isn't listening. 😁 I like how you break down the interest on a daily basis. And by the way, you're a fine grapher. (Even if it isn't really a word) I know, since it was underlined in red by UA-cam when I typed it. Lol 😁
I think where you're losing people.... If someone had an extra 1500/mo in cash flow, they wouldn't need this system. Just simply pay the cc with that money. Only way this pays is this situation is if you are using points to use for other purchases. I think if you stick to a cash flow of a few hundred dollars this system would make more sense. One BIG mistake in this system, is you HAVE to be very disciplined or you will end up in a much much much worse situation. I am using this system and it has changed the way I look at money. I don't feel like I'm paycheck to paycheck. And most of all I get to make sure to pay myself first. Cheers 🍻
I opened a CC with Sofi, and they allowed $5k on it. I hadn't used it in a year, but when I did, it was for a truck repair at $3,500. I made timely payments on the card up until tax season when I then paid off the debt in full. Less than 3 months later, Sofi reduced my spending balance to $900. Needless to say, I don't use the card anymore, but keep it open because it would show as a negative mark against my credit if I closed it. How can you know that the card you use for Velocity Banking won't do the same and what to do then?
Call the credit card company and ask why. I had the opposite happen to me. I paid off my $300 limit credit card, and they raised me to $1,500. It's still sitting at a zero balance.
This is how I’ve been doing my finances, and I can breathe. I got my debt paid off then charged it back because I don’t make what I want to spend sometimes. The numbers are all smaller, but this is exactly what I’ve done. My husband does not understand it, so he does not want me using the debt to pay my expenses each month. He doesn’t understand that if I try keeping out what I need to live on, the debt doesn’t pay down as fast. I’ve also tried to explain this to my son, and he either didn’t understand or he’s just to spendy for it to work. I’m going to try to get them both to watch this video.
@plant Thank you! Please go to the PLAYLIST and look for Credit Card Debt Strategies. I have a video or two in there showing scenarios involving 2-4 cards. Thanks for watching!
I'm in the VB cult, LOL. This method I started in November , it's a life saver for me. I'm in Canada and I rent and use VB for everything including rent. I run strictly on CC , I have no lines of Credits. It still works. Yes, rent can be paid on a CC here. I love your videos, super helpful!🎉❤❤❤❤❤#VBworks
Is this a new video ? If it is, its strange you didnt mention to be careful with large deposits into credit cards since the creditor can lower your credit limit and kill the strategy. If anyone is new here, go watch her other videos on the channel
Thank you! I went in aggressively and started doing this. What advice would you have on paying off a credit card that has been cancelled but still has a balance ?
@tanishalarie6015 Your only option would be to transfer that balance into another revolving line of credit that is still active. The cancelled card is just like a LOAN...growing interest while you make payments. I hope this helps. Thank you so much for watching! Merry Christmas!
if you'd simply put your $1500 a month cash flow directly on that credit card or credit line, it will pay off in 6 months. From what I can see it's going to pay off earlier or the same as your method is going to pay off. Your method is not 5 months, it's going to be 6 months because you didn't account for any of the interest you have to pay on that credit line.
$1500 a month would still take 7 months, but opening peoples' eyes to the average daily balance is a valuable lesson. Your method (claiming 6 months) apparently didn't account for the interest either. Paying the least amount of interest puts more money toward the principle.
2:24 Dave is always in my head “ you think it’s a good idea to be buying that” “why are you spending your money on that” or the best one “ pay for your house with cash” 🤣🤣 I’m just kidding on the last ya totally out of touch on that one, but he has taught me to be frugal for sure and I’m loving it!!
Appreciate the detailed breakdown! I have a quick question: My OKX wallet holds some USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). What's the best way to send them to Binance?
Wait! You stopped early: You stopped at $500 which is right before the $2,000 expenses will be added in. And besides that: I’m not seeing how this plan is any better than just putting the $1500 additional payments towards the debt- please explain this.
The way I'm understanding it, now that the balance is $500, instead of adding the entire $3500 income, simply add $500 to zero out the account. And since the card is now paid in full, you don't need to continue using the credit card for expenses, unless you just want to, so long as you spend wisely. I hope this helps.
@ OK that does make sense that’s better than what I was thinking. But I don’t understand how this is better than just using the $1500 margin every month to pay on the card. I would love to hear your response about that
@@joshuaborem7063I can see how not just paying $1500/mo can be a distraction. Paying a big chunk such as the $3500/mo lowers the interest rate. The bigger the amount paid, the less interest you pay. The lower the amount paid, the more interest you pay. The video shows the interest going down each time with the $3500/mo payment. As I'm sure you already know, interest is how banks make their money; and the less interest you give to them and keep in your own pocket, the better for you. I am not a pro at all; this is new to me too, and I'm learning just like you. 🙂
You lower the average daily balance, upon which the monthly interest is calculated. If just using the $1500 chunk, you don’t get the interest savings using the method she is displaying.
Oh my goodness! I've just realised something. Here un the UK, we don't have such a thing as a 'line of credit'. Obviously we do have credit cards. I don't have one because it comes with massive interest here, monthly and annual interest together. It means debt which we just couldn't afford. As you were explaining leaving in the regular payments in the bank and the rest on the credit card....I had a lightbulb moment. I just signed up for a cashback card with my utility company. It isn't a bank card but works like a debit card. I top it up with that money that doesn't go on the regular payments and use that for all other expenses but here's the thing. It is a top-up card like a gift voucher. there is a fee of £3 p/m but if I'm diligent and monitor everything that goes out, I can leave a credit balance in all the time. Like a savings account. There is no overdraft so it requires being diligent. I'm going to keep saving and use that to avoid debt. Thanks. 🤗
I'm ignorant about other countries financial products. With that said, I think you might be able to use overdraft on your checking account as a LOC. Please do your own research and how they work. Hope this helps, have a great day.
So, once you make the deposits of your income($3,500)…. Doesn’t a good portion of that get absorbed into the interest and cannot be calculated as money that can be spent on expenses? I hear you saying how much interest is being calculated per day, but am not really seeing it come off of that deposit. Once you pay anything towards that credit card, if it’s not @ 0 percent interest, a good chunk of it IS taken. Maybe I missed something that you said. Great teaching, but help me understand if you can recapitulate.
If you really want to break it down to a layman level, yes interest is what is taken (the banks profit). Is a good portion of it? Maybe, depending on one point of view. If you look at her graph, the first peak is what you would have paid the old way of banking, the second peak is doing VB.
If you do the math on the first 2 peaks you see the difference in the amount of interest owed. The first peak of 10K balance cost you 7.67 a day, 230 a month. By placing the 3,500 income it brings down the the daily interest to 4.78 a day or 143 for the month. So, by simply doing VB you save 87 dollars in monthly interest, in month one. So to answer your question, is a good portion going to interest? In my opinion no. If I borrow 10K and I only pay 143 dollars in interest the first month, I say that's a bargain. Your opinion might be different. Hope this helps, have a great day.
@@Jesus-o7v9x Please help me understand something. If you are given a $10,000 CC, do you withdraw everything at once ($0 balance CC) and start using the VB strategy to repay the CC debt?? So in this scenario, is she combining the utility of her $10k +$5k income to pay of debt. Or did she leave the $10k limit in the CC and perform this strategy with her $5k income alone. Then she can withdraw the $10k debt free?? I'm i making sense?
$200 a month for food? You can’t be serious, it’s more like $200 a week, the wife and I have a combined income of about $12,000 cash money per month, a house payment, 3 car payments, 7 maxed out credit cards between the both of us, and we’re struggling just to make ends meet.
You can either do a chunk payment towards principal or eat up the entire car loan with the HELOC. Eating up the entire car loan with your HELOC increases your monthly cash flow by the monthly car payment. Hope this helps, have a great day.
you do one card like in this video,pay the minimum with other cc,when the first one is paid you do the same with the next card until all of them are paid
I’m a little confused on how that dollar per day amount is calculated. Really just the first one. So 30% APR? 30 to a decimal is .3 divided by 365 days in a year = 0.000821918 a day. So 0.000821918 * $10,000 is $8.22 a day? Am I doing this wrong?
Did you decide to comment before watching the video. At every peak she literally tells you how much it's costing you a day. If anything just multiply the daily interest being charge and multiply it by 30 to get how much interest you'll pay a month.
@@herimagallanes9585 *[Balance × Interest Rate] ÷ 365 (days a year) = Daily Interest* *[Daily Interest x 30] = Monthly Interest* Hope this helps, have a great day.
I did watch the whole video she still does not address the cost 30days x daily interest = hundreds of dollars a month. Where is it shown how she pays that cost answer me that
I don’t know how she gets the $7, but the equation is $10,000 X 30% (0.3), then divide that by 365 days. That is the daily interest if you kept it at $10K the whole year. BUT because it goes down and up, each day is different.
Please explain ( I ask again) you have several points on the graph with you reference interest on a daily rate $7.67 a day $4.78 a day 652 a day if you multiply those times to the 30 day. You have to pay that you never address that amount in the video whether it’s $300 or $50 where does that money come from? It’s not in your expenses of $2000, please explain
Fair question. And you're right. the interest will be added to the principle until the balance is zero. If the average daily balance is lower, the interest charged each month will be lower. That's why you pay everything you can onto the card and borrow it back as need for expenses. Her example would probably take 7 months instead of 6, but that's a whole lot better than years and years!
Hi there! I'm new here. What do I do if I no longer have the credit cards? I closed the accounts and shredded the cards, but I'm still paying them off?
This will work as long as you can stay disciplined enough to not eat into that cash flow every month. I mean, she has worked out all of the math, so can't argue with the numbers.....just gotta have a little bit of discipline for about 6 months.
Depends on what you mean by eating into cash flow. If you have low cash flow, then yes, discipline is mandatory. Example if monthly cash flow is 300 a month then a bad month is around the corner if not discipline. If cash flow is 1,200 a month, then less discipline is required. You can say you can be a little reckless. You can take the family out to a 500 steak dinner and your 700 cash flow that month still pays debt down by a lot. With that said, I'm not saying go out and spend crazy. Have a great day.
So your scenario is with a line of credit or a credit card ? So when u put in ur cash flow 2 the card u are lowering ur interest and making the monthly payment at the same time ? Also if we paid the card before the due date. Doesn't that knock out the interest charges ? Forgive me im a green horn
There is no interest (usually) if your entire balance (on a credit card) is paid in full every month. On a line of credit interest is charged on any remaining balance AND any additional money borrowed starting on the day that it is borrowed.
@@waynemiller6070Ohhhhhhkkkk. So no interest if paid in full leaving a zero balance at the end of billing cycle. And on the line the interest is in play when monies os borrowed/used. Hence putting in ones income to wipe out the interest monthly. Im seeing it , i hope
If using Heloc instead of CC, would you suggest putting all $5k into heloc and then taking out the money to pay everything out? Or do u leave that $1,500 in the bank and just put the 3500 in the heloc?
With a PLOC, HELOC, CC (linked) you don't worry about separating your income. It's just income in, expenses out. For CC that can't be link, you divide your income into 3 categories, cash expenses, credit expenses, cash flow. Cash expenses stay in checking and paid from there. Credit expenses and cash flow go on the CC, with credit expenses being paid as they come due. Hope this helps, have a great day.
It's called, lifestyle creep. As people make more income, the more they spend. Usually on things they could do themselves. Mowing the lawn, washing their clothes (not dry cleaning), washing the car, housekeeping, upkeep on pool, going out to eat. Have a great day.
This is what I don’t understand… I have no house payment or car payment. The majority of my expenses are credit card payments. If I deposit my income onto a credit card for the purpose of velocity banking, how do I pay those credit cards every month? To my knowledge, credit card companies do not allow you to pay a credit card bill with another credit card.
You can't pay a credit card with a credit card. You pay them from checking. The exception is a linked credit card (credit card as overdraft protection).
The way she explains it you put your left over cash into the credit card (that takes care of the payment) use your cc again for your expenses and do it again the next month. Hopefully lowering the cc balance monthly.
This is the video that did it for me!! It finally clicked..been doing velocity banking for 9months now..will be debt free April 2025😊
@jeffreyh4479 AWESOME!!!!
Amen
My jaw dropped after understanding this. The power of demonstration is powerful. Also, defining key terms was a game changer.
@yann MINE, too! Yes!
Wow! Who's paying only 1000 for rent! Thanks for the great video❤
You're lost good luck lol
@ you need to watch the video
It's the difference between the old testament and the new. There's a hard way and a graceful way. 😊
This method has changed the whole way I think about money! Do it!!
What about bank charges and interest.
I swear to God!! & what's crazy is that lending institutions respect you more that way cause they see you know how to properly use money. Helps a lot of you wanna get some decent capital to start or run a business too.
The easy way is just depositesd your cash flow into ur credit card payment n same result ...just discipline n u were out
Christy, you're a saint and a sweetheart. I wish I would have found this back when I was struggling. I had to do it the old-school way because I didn't know any better.
I still watch this stuff even though I gave DEBT the middle finger several years ago now.
Watching from Ontario, Canada.
Thanks to your videos I have obtained a heloc and did so well I got a ploc at the same bank. I’m paying off thousands of dollars, avoiding so much interest, and plan to payoff my mother’s car loan for her soon! Trying to pay forward the blessing of VB!
AWESOME @Jeg!
Love this method, I’ve been able to pay off smaller credit card balances, was able to get a heloc, put on a new roof, replaced a retaining wall that collapsed, now slowly paying down my mortgage
High five Christy! You ROCK girl!
This was a randomly recommended video. But, boy, did I need to hear and see this! Thank you so much!
Finally figured out my debt problem. No income lol
This was the best breakdown you've ever given of this method!
Ma’am, you are brilliant, Thank you for sharing your knowledge.
🙏🏽 YES! The beauty of VB and Christy’s teaching changes the game!
Thank you for your thoughts on Ramsey. Nothing against him, but his way made me miserable, but this gives me hope.
I like to watch both, keeps me in check
Never heard of him until this video
Thank you SO much Vann. This felt like a relief emotionally not just financially!
You know I love the singing Christy!🥰. Great video!
I jumped head first into this...I love this and have startes doing this and it has been a game changer!! TY!
Great breakdown! Love your page and wisdom 😊
Thank you for all of the videos you make for us.
Yes, let karate chop this debt......LUV the graph......very simple!
Thank you, Jesus, for sending Christy to us all!!! ❤❤❤❤❤
Eat at home
Eat bulk foods
No loans
I don’t own a car
Thrift stores
I prefer more out of life. But, good for you.
I finally get this!! It’s taken me a couple of videos….can’t wait to do this!! 🥳🥳
I'm trying this right now. I keep getting denied a HELOC (cosigned for daughter's car 🙄) so I started putting everything on cc's and use the cash to pay chunks to the mortgage interest. Then pay down the cc debt and do it again. I don't know if I'm saving any money but I need to pay my mortgage down until they approve me for a HELOC and then do VB in a better way. Thanks for all your teaching. 🤩
Thank you so much for sharing your knowledge, I’m on disability and trying to learn to live a a very low budget and pay off my credit cards, I’d enjoy talking with you to help me with my journey, but I’m gonna take what I’ve learned from this video and try to, thank you , I know I’m just a nobody but I’m thankful for what you shared .
First time kislux kuch different colors ka LV bag dekha..very elegant....good choice
So glad I found you!!!
I'm screwed. 10 credit cards with 100k in debt. Pray for me ya'll and have a great day! ❤
@lav7161 Stay ENCOURAGED!! CREDIT CARD DEBT STRATEGIES in my PLAYLIST may give you some ideas. Merry Christmas!
No, you are not. Keep watching the videos. You've got this!!!
@@lav7161 you are NOT screwed. Start with ONE credit card, use this method and begin your journey to DEBT FREE!
@@VanntasticFinances If in his current situation his cashflow is just $1,000 how long will it take him to come out of this $100k debt with your strategy?
I am enjoying this class never seen this way of teaching before I’ve been watching Dave Ramsay
Dave is amazing to wake you up lol, but Christy shows you the fastest/easiest way out of debt
Praise God for you sister
I’m trying to get married to my fiancé in the LORD’s will . 41 Never been married, never bought a house , never saved money, and never made much money. I never learned much about money. This right here was like a coming into the Light of Jesus , seeing the sin that has so easy beset me, and learning how to trade it for ……. Glory.
To God be all the glory
I've watch a number of your videos. I like this one a lot. You're a humble and patient teacher. Even if Dave isn't listening. 😁
I like how you break down the interest on a daily basis. And by the way, you're a fine grapher. (Even if it isn't really a word) I know, since it was underlined in red by UA-cam when I typed it.
Lol 😁
@waynemiller 6070 😂 Thank you so much for your kind words
I think where you're losing people.... If someone had an extra 1500/mo in cash flow, they wouldn't need this system. Just simply pay the cc with that money. Only way this pays is this situation is if you are using points to use for other purchases. I think if you stick to a cash flow of a few hundred dollars this system would make more sense. One BIG mistake in this system, is you HAVE to be very disciplined or you will end up in a much much much worse situation. I am using this system and it has changed the way I look at money. I don't feel like I'm paycheck to paycheck. And most of all I get to make sure to pay myself first.
Cheers 🍻
I opened a CC with Sofi, and they allowed $5k on it. I hadn't used it in a year, but when I did, it was for a truck repair at $3,500. I made timely payments on the card up until tax season when I then paid off the debt in full. Less than 3 months later, Sofi reduced my spending balance to $900. Needless to say, I don't use the card anymore, but keep it open because it would show as a negative mark against my credit if I closed it. How can you know that the card you use for Velocity Banking won't do the same and what to do then?
I'd probably thank them for doing me a favor.
@gwendolyn9308 that sure is true, but I'd like to know why they do that. It's all a game in their favor, anyway.
Great question bcuz the cc will cut the available $$$
Call the credit card company and ask why. I had the opposite happen to me. I paid off my $300 limit credit card, and they raised me to $1,500. It's still sitting at a zero balance.
Definitely need some assistance would love to use this method thanks for the video
TY! VANTASTIC! Th!s info is FANTASTIC! & such a no brainer for me! I share your information to ppl and they say you do It then 😆 I AM!
This is how I’ve been doing my finances, and I can breathe. I got my debt paid off then charged it back because I don’t make what I want to spend sometimes. The numbers are all smaller, but this is exactly what I’ve done. My husband does not understand it, so he does not want me using the debt to pay my expenses each month. He doesn’t understand that if I try keeping out what I need to live on, the debt doesn’t pay down as fast. I’ve also tried to explain this to my son, and he either didn’t understand or he’s just to spendy for it to work. I’m going to try to get them both to watch this video.
Hello beautiful lady. Thank you . ….In this example you have only one card. how you pay 3 CC at the same time. thank you.
I have four credit cards. I was wondering the same thing.
I believe she said pay one off at a time then, use the same method to attack the next one.
@ oh. thank you very much 👍
@plantaricanplantasymas you're welcome and good luck!😊
@plant Thank you! Please go to the PLAYLIST and look for Credit Card Debt Strategies. I have a video or two in there showing scenarios involving 2-4 cards. Thanks for watching!
Not to mention your getting rewards from using your credit card, which equals cash!
Wow thank you 👍🏼
VANNtastic!!! I absolutely LOVE the Ramsey impersonations!!! 🎯😆😁🤣😂
Christy, any examples on negative cash flow?
Christy has some videos on negative cash flow
I’m missing the credit interest amount being added on.
You're the best 🎉
I'm in the VB cult, LOL. This method I started in November , it's a life saver for me. I'm in Canada and I rent and use VB for everything including rent. I run strictly on CC , I have no lines of Credits. It still works. Yes, rent can be paid on a CC here. I love your videos, super helpful!🎉❤❤❤❤❤#VBworks
I’m in Canada too but CC is not allowed in my area.
@SamJone2024 oh noooo, that's not right, smh. I'm working towards a line if credit. You should try KOHO they now offer a line of credit.
@SamJone2024 oh no....maybe try KOHO. They now offer a line of credit.
@SamJone2024 that's unfair!
Omg thank you
Uhhhhh....... What?!!! And, who has $3500 dollars Available,to put towards a card each month? NOT ME!!!😮
Even working within your means the principal works the same way.
I do VB for 10 months , life changing😍
Is this a new video ? If it is, its strange you didnt mention to be careful with large deposits into credit cards since the creditor can lower your credit limit and kill the strategy. If anyone is new here, go watch her other videos on the channel
No. It's a snippet of an old video. You can say it's a re-upload. This is from a video that is probably almost 2 years old.
Now it clicked! 🏌♂️
Thank you! I went in aggressively and started doing this. What advice would you have on paying off a credit card that has been cancelled but still has a balance ?
@tanishalarie6015 Your only option would be to transfer that balance into another revolving line of credit that is still active. The cancelled card is just like a LOAN...growing interest while you make payments. I hope this helps. Thank you so much for watching! Merry Christmas!
I believe “grafartist “ is the term you’re looking for. 😄
Thank you
God bless you 🙏🏽🙌🏽
I would love to connect with you. I’ve had it with debt and really want to feel free from it.
if you'd simply put your $1500 a month cash flow directly on that credit card or credit line, it will pay off in 6 months. From what I can see it's going to pay off earlier or the same as your method is going to pay off. Your method is not 5 months, it's going to be 6 months because you didn't account for any of the interest you have to pay on that credit line.
$1500 a month would still take 7 months, but opening peoples' eyes to the average daily balance is a valuable lesson. Your method (claiming 6 months) apparently didn't account for the interest either. Paying the least amount of interest puts more money toward the principle.
Now how do you do while paying off other credit cards
How does this work with multiple credit cards? Where are the monthly payments for those other cards
After getting out of credit card debt. Why use another credit card if the feds are going to keep raising rates?
What are the risk of CC company lowering your available balance/spending limit when/after you deposit that $3500 into the CC?
2:24 Dave is always in my head “ you think it’s a good idea to be buying that” “why are you spending your money on that” or the best one “ pay for your house with cash” 🤣🤣 I’m just kidding on the last ya totally out of touch on that one, but he has taught me to be frugal for sure and I’m loving it!!
Extra bonus if your card allows points.
Appreciate the detailed breakdown! I have a quick question: My OKX wallet holds some USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). What's the best way to send them to Binance?
Wait! You stopped early:
You stopped at $500 which is right before the $2,000 expenses will be added in.
And besides that: I’m not seeing how this plan is any better than just putting the $1500 additional payments towards the debt- please explain this.
The way I'm understanding it, now that the balance is $500, instead of adding the entire $3500 income, simply add $500 to zero out the account. And since the card is now paid in full, you don't need to continue using the credit card for expenses, unless you just want to, so long as you spend wisely. I hope this helps.
@ OK that does make sense that’s better than what I was thinking.
But I don’t understand how this is better than just using the $1500 margin every month to pay on the card.
I would love to hear your response about that
@@joshuaborem7063I can see how not just paying $1500/mo can be a distraction. Paying a big chunk such as the $3500/mo lowers the interest rate. The bigger the amount paid, the less interest you pay. The lower the amount paid, the more interest you pay. The video shows the interest going down each time with the $3500/mo payment. As I'm sure you already know, interest is how banks make their money; and the less interest you give to them and keep in your own pocket, the better for you. I am not a pro at all; this is new to me too, and I'm learning just like you. 🙂
You lower the average daily balance, upon which the monthly interest is calculated. If just using the $1500 chunk, you don’t get the interest savings using the method she is displaying.
How do you recommend addressing having several credit cards with large balances? Do you recommend combining onto one card?
I need elementary, lol thank you!!!!!
Oh my goodness! I've just realised something. Here un the UK, we don't have such a thing as a 'line of credit'. Obviously we do have credit cards. I don't have one because it comes with massive interest here, monthly and annual interest together. It means debt which we just couldn't afford.
As you were explaining leaving in the regular payments in the bank and the rest on the credit card....I had a lightbulb moment.
I just signed up for a cashback card with my utility company. It isn't a bank card but works like a debit card. I top it up with that money that doesn't go on the regular payments and use that for all other expenses but here's the thing. It is a top-up card like a gift voucher. there is a fee of £3 p/m but if I'm diligent and monitor everything that goes out, I can leave a credit balance in all the time. Like a savings account. There is no overdraft so it requires being diligent. I'm going to keep saving and use that to avoid debt.
Thanks.
🤗
I'm ignorant about other countries financial products. With that said, I think you might be able to use overdraft on your checking account as a LOC. Please do your own research and how they work. Hope this helps, have a great day.
A friend of mine paid off a big chunk on two of her credit carfs and they reduced her credit limit.
It looks so simple when you explain it but somehow when I try to apply it I fail idk what I’m doing wrong. 😂
I'm confused l don't understand
Can u show us how to figure out the daily interest?
Do you pay other credit card payments , as well? Treat them like any other expense?
So, once you make the deposits of your income($3,500)…. Doesn’t a good portion of that get absorbed into the interest and cannot be calculated as money that can be spent on expenses? I hear you saying how much interest is being calculated per day, but am not really seeing it come off of that deposit. Once you pay anything towards that credit card, if it’s not @ 0 percent interest, a good chunk of it IS taken. Maybe I missed something that you said. Great teaching, but help me understand if you can recapitulate.
If you really want to break it down to a layman level, yes interest is what is taken (the banks profit). Is a good portion of it? Maybe, depending on one point of view. If you look at her graph, the first peak is what you would have paid the old way of banking, the second peak is doing VB.
If you do the math on the first 2 peaks you see the difference in the amount of interest owed. The first peak of 10K balance cost you 7.67 a day, 230 a month. By placing the 3,500 income it brings down the the daily interest to 4.78 a day or 143 for the month. So, by simply doing VB you save 87 dollars in monthly interest, in month one. So to answer your question, is a good portion going to interest? In my opinion no. If I borrow 10K and I only pay 143 dollars in interest the first month, I say that's a bargain. Your opinion might be different. Hope this helps, have a great day.
@@Jesus-o7v9x thank you so much!! I understand now.
@@Jesus-o7v9x Please help me understand something.
If you are given a $10,000 CC, do you withdraw everything at once ($0 balance CC) and start using the VB strategy to repay the CC debt??
So in this scenario, is she combining the utility of her $10k +$5k income to pay of debt.
Or did she leave the $10k limit in the CC and perform this strategy with her $5k income alone. Then she can withdraw the $10k debt free??
I'm i making sense?
Can you do with debit card like the Experian card?
How can I contact you?
What is the "stay in the bank" money for?
This video clearly demonstrates you can’t live off $5,000 a month in 2024…
$200 a month for food? You can’t be serious, it’s more like $200 a week, the wife and I have a combined income of about $12,000 cash money per month, a house payment, 3 car payments, 7 maxed out credit cards between the both of us, and we’re struggling just to make ends meet.
You might have to do the Dave Ramsey method😮.
VB will work for you just fine, have faith😊
I have a heloc, how can I implement a plan to pay off my car? Thanks in advance.
You can either do a chunk payment towards principal or eat up the entire car loan with the HELOC. Eating up the entire car loan with your HELOC increases your monthly cash flow by the monthly car payment. Hope this helps, have a great day.
How can you do velocity banking using multiple credit cards only?
She might have a video about multiple credit cards
you do one card like in this video,pay the minimum with other cc,when the first one is paid you do the same with the next card until all of them are paid
@@jolantazielinski2617 true
Is it beneficial to put the car loan on credit card if there is space available on the card?
Only if you get a 0% interest offer from the credit card issuer. For a minimum of 12 months. Have a great day.
I’m a little confused on how that dollar per day amount is calculated. Really just the first one. So 30% APR? 30 to a decimal is .3 divided by 365 days in a year = 0.000821918 a day. So 0.000821918 * $10,000 is $8.22 a day? Am I doing this wrong?
I got the same thing.
Thankyou ma'am I was thinking in bank way this is credit card way
I am having a calculation of how to double your money in 29 month at bank interest of 8 percent which we get here in India shall I send it
You never address the daily interest charge which adds up to hundreds of dollars each month. Please explain
Did you decide to comment before watching the video. At every peak she literally tells you how much it's costing you a day. If anything just multiply the daily interest being charge and multiply it by 30 to get how much interest you'll pay a month.
How do you get the daily interest
@@herimagallanes9585 *[Balance × Interest Rate] ÷ 365 (days a year) = Daily Interest*
*[Daily Interest x 30] = Monthly Interest*
Hope this helps, have a great day.
@I think the bank will use the annual rate divided by 360..
I did watch the whole video she still does not address the cost 30days x daily interest = hundreds of dollars a month. Where is it shown how she pays that cost answer me that
Definitely- not a “grapher”, not “arithmetician” either….
How did you get the 7 dollars a day on interest? What is the equation?
I don’t know how she gets the $7, but the equation is $10,000 X 30% (0.3), then divide that by 365 days. That is the daily interest if you kept it at $10K the whole year. BUT because it goes down and up, each day is different.
Are you are able to go into negative debt and earn interest on your credit card by doing this forever?
How can you pay rent with a credit card
Hey, Christy how can I reach out to you through email?
Please explain ( I ask again) you have several points on the graph with you reference interest on a daily rate $7.67 a day $4.78 a day 652 a day if you multiply those times to the 30 day. You have to pay that you never address that amount in the video whether it’s $300 or $50 where does that money come from? It’s not in your expenses of $2000, please explain
Fair question. And you're right. the interest will be added to the principle until the balance is zero. If the average daily balance is lower, the interest charged each month will be lower. That's why you pay everything you can onto the card and borrow it back as need for expenses. Her example would probably take 7 months instead of 6, but that's a whole lot better than years and years!
So where do you add the interest back in? Is that figured into expenses?
What if you have more than one credit card?
Hi there!
I'm new here. What do I do if I no longer have the credit cards? I closed the accounts and shredded the cards, but I'm still paying them off?
Open a new one😊
This will work as long as you can stay disciplined enough to not eat into that cash flow every month. I mean, she has worked out all of the math, so can't argue with the numbers.....just gotta have a little bit of discipline for about 6 months.
Depends on what you mean by eating into cash flow. If you have low cash flow, then yes, discipline is mandatory. Example if monthly cash flow is 300 a month then a bad month is around the corner if not discipline. If cash flow is 1,200 a month, then less discipline is required. You can say you can be a little reckless. You can take the family out to a 500 steak dinner and your 700 cash flow that month still pays debt down by a lot. With that said, I'm not saying go out and spend crazy. Have a great day.
So your scenario is with a line of credit or a credit card ? So when u put in ur cash flow 2 the card u are lowering ur interest and making the monthly payment at the same time ? Also if we paid the card before the due date. Doesn't that knock out the interest charges ? Forgive me im a green horn
There is no interest (usually) if your entire balance (on a credit card) is paid in full every month. On a line of credit interest is charged on any remaining balance AND any additional money borrowed starting on the day that it is borrowed.
@@waynemiller6070Ohhhhhhkkkk. So no interest if paid in full leaving a zero balance at the end of billing cycle. And on the line the interest is in play when monies os borrowed/used. Hence putting in ones income to wipe out the interest monthly. Im seeing it , i hope
If using Heloc instead of CC, would you suggest putting all $5k into heloc and then taking out the money to pay everything out? Or do u leave that $1,500 in the bank and just put the 3500 in the heloc?
With a PLOC, HELOC, CC (linked) you don't worry about separating your income. It's just income in, expenses out. For CC that can't be link, you divide your income into 3 categories, cash expenses, credit expenses, cash flow. Cash expenses stay in checking and paid from there. Credit expenses and cash flow go on the CC, with credit expenses being paid as they come due. Hope this helps, have a great day.
I don't get it
Just keep watching more videos. You are using simple interest to payoff compound and amortized. You will. Good luck
Ya but how long does it take to pay off if your extra money is only $400 a month and not $1500
It depends on interest paid on debts.
It's still much faster than other methods😊
I still dont understand people making a lot of money and getting in debt
It's called, lifestyle creep. As people make more income, the more they spend. Usually on things they could do themselves. Mowing the lawn, washing their clothes (not dry cleaning), washing the car, housekeeping, upkeep on pool, going out to eat. Have a great day.
This is what I don’t understand… I have no house payment or car payment. The majority of my expenses are credit card payments. If I deposit my income onto a credit card for the purpose of velocity banking, how do I pay those credit cards every month? To my knowledge, credit card companies do not allow you to pay a credit card bill with another credit card.
You can't pay a credit card with a credit card. You pay them from checking. The exception is a linked credit card (credit card as overdraft protection).
The way she explains it you put your left over cash into the credit card (that takes care of the payment) use your cc again for your expenses and do it again the next month. Hopefully lowering the cc balance monthly.
🙌🏽 11:12