Thank you for using a more realistic income. So many I've seen have incomes of $4500 to $8600. The majority of people don't make that much and looks more discouraging than encouraging.
@@VanntasticFinances Oh wow, I didn’t know the average American household income was $5600. I’m so glad I come across your channel, because I learn something new everyday. I look forward to catching up on all of your older videos, as well as watching the new ones.
I would say I don’t know how I find you on UA-cam, but I know better. My husband and I have been in prayer so that we get our credit scores up and our credit record in great shape so that we can purchase our forever home. It was no one but God that led me to *Web backdoors🕳️org* . I thank God for this wisdom. Bless you.
Girl I just paid $350 from this week’s paycheck on credit cards! 10 minutes ago! And that’s not paycheck parking bc I paid off something last month. Thanks for all you do for the public!
For all of those confused - I’m trying to understand too. But I think you take the cash that you were going to use to pay each of your bills, $856 in this example, add it to the $911 and then use all of that money to make monthly credit card payment. Yo trick bank into thinking you are making a higher monthly payment to lower the minimum payment. Then you use that CC to pay your bills spread through month. Then continue month after month, and with the $911 and the lower interest charge. You will pay off debt quicker. It still takes time though.
Ok, I tried it for two months and it didn’t work for me. It’s better just to stick to a budget and do the snowball method to pay off debt …in my opinion.
Of course it takes discipline. Everything that involves a change in behavior is difficult at first because it involves change. My wife and I began using velocity banking two and a half years ago (6/21) when we obtained a first position HELOC in an amount large enough to pay off our existing home equity loan and all of our credit cards. Using the HELOC as our checking account has enabled us to reduce our total debt from $156000 to a shade under $32000 in only 29 months! The true beauty of this strategy is that it has allowed us to weather a few financial storms ($21000 for removal of over 60 dead Ash trees in our yard and only a few months later $6000 for the replacement of 270’ of waterline from the meter to our house and a new water heater). Did these events slow us down in our plan to get out of debt? Of course it did but without the HELOC and velocity banking we would have had to put it on our credit card and pay those exorbitantly high interest rates for years. As it stands now we are 6-7 months from paying the HELOC off.
I came across just one video by pure chance and I instantly understood you completely, and was amazed at how you opened my eyes in like 5 minutes . It is such a good thing you are doing to Help others who just don’t know any better,..I think you are a fantastic person and have a really good soul , to take the time to help so many like me who are struggling right now.
I like the concept of velocity banking but in every video people make it seem like we get paid once a month, in reality we get paid bi weekly and some people weekly so a better break down would be nice to see how this concept will work in real time. In 2weeks I get paid, how much is going in. What will get paid and the remaining balance. Next 2weeks I get paid what will be paid off and what is the remaining balance on the card. If that type of video can be that would be really nice.
This is actually a very good question and while it won’t make much difference in how the credit card works, it does change the logistics in the process! 😎
everything goes into the CC each pay check, except for expenses that can not be paid with your CC. divide that number by 2- if you get paid bi weekly and keep it in your checking. hope this helps
Great point ! I too get paid bi weekly, however if you take an average let’s say of three checks, take that average and multiply it by 26; because that’s how many payroll checks you get paid in a year; divide that number by 12; that value will be approximately what you get paid on a monthly basis. It’s going to be pretty close. Some checks could be lower some higher. Be conservative; or look at pay stub history and see how you can average out a few; but the important thing here is not to over shoot, just keep it simple for white board purposes, this can give you a pretty good insight after taxes what you making.
I’ve been watching Suze Orman, Dave Ramsey and quite a few others for YEARS and you’ve taught me in a DAY. I’ve shared your channel with all my children and I’ll be putting this to work starting September 1, again thanks❤
I would say I don’t know how I find you on UA-cam, but I know better. My husband and I have been in prayer so that we get our credit scores up and our credit record in great shape so that we can purchase our forever home. It was no one but God that led me to *Web backdoors🕳️org* . I thank God for this wisdom. Bless you.
I started this process this month. I'm amazed at how this works. I was feeling stuck in credit card debt but now I am relieved Thanks you a million times
I'm going to start my one smallest CC and see how it works. I noticed can't do carecredit though. Or can you?? I'm assuming not since isn't it a health care card??
Thank you for making these videos, I found you less than a month ago and I watched almost all of your videos and I got the concept. I am started doing VB 2 weeks ago and preparing myself to do it right. I am taking advantage of a 0% balance transfer cc to be able to pay the other cc. Again, thank you so much and God bless you!
I started VB 3 mos ago! It works! I have paid off $1,800 already. To some this may not sound like much but to me it is huge. I will be debt free soon and I'm so grateful for Christy and her channel!
One topic that is hard to understand is how when paying one CC off and moving to my next CC. Its confusing other than if the remaining balance is less that my available cash flow it just gets paid off? This transition is confusing. Can you please make a video on transitioning from one CC to another after one is paid off and what that looks like? I appreciate all you do and God Bless!
Right, that’s what throws me off too being that once her card is paid off, she would still have those expenses taken out throughout the month. How does the transition happen to another credit card to pay off. Seems like you would have to make a double payment once it’s paid off to be able to make the switch to another card and truly have the initial card paid off…That’s how I see it on my mind.
You are gaining more cash flow as you go. Allowing you to pay off the next card more quickly. If your calculation of daily interest is close they may owe you or you may owe them a tiny amount of money just a few dollars or cents. At least that’s how I’m seeing it.
When you are approved for the loc you take it and pay that credit card off which is where the balance in the right column comes from. Youre eliminating the interest (and the monthly payment) from that card and transferring it to the loc. You then use your monthly income to satisfy the loc payment as well as the credit card payment thats been transferred to the loc. Remember, since this card is now paid off, whatever the monthly payment was before is now gone and added to your cashflow.
You time and effort is greatly appreciated. The information you teach is truly priceless. I visited your website and plan on reaching out to you by the end of September in order to use your services. I hope and wish for you to also write a book 📕!! Wishing nothing but the best.
I have a line of credit but I can only transfer money in and out of my checking account. I can’t pay bills directly from the line. How does that work? Why use the LOC when I can just pay the bills out of the checking account.
@@EddyScrivner- She does not teach to pay bills directly from the LOC. You put all your income into the checking account, then transfer it to the LOC. Then, when you need to pay bills, you transfer the amount you need for bills back into the checking account, so bills can be paid on either "auto pay" or manual. The LOC protects/preserves your cash flow. Hope I could help!
Phenomenal! I just asking a question on your other post regarding multiple credit cards! I am glad the algorithm sent you my way! Please keep the great content coming! 😊
I love your videos and it all makes sense. My concern is the fact we are all making the credit card companies richer AND more influential... in addition to the push for cashless, it's actually very concerning. ...I don't have the answers. These videos are all true and using credit is beneficial, the long-term consequences are also true.
I really want to try this concept to pay down debt. Could you give an example of paying off multiple credit cards that are due at different times of the month while getting paid twice a month?
First, make a realistic budget and figure out your monthly cash flow. STICK TO YOUR BUDGET! You will need to set aside cash for items you can't pay with a credit card, like rent, house notes, and other credit card minimum payments. Pick one of your cards to work on first. Every time you are paid, take every dime, less what you had to set aside, and pay it to that CC. Use that CC throughout the month. At the end of the month, what should remain on your card is your monthly cash flow which has paid down the balance. Repeat every month until the balance is zero, then start the process over on the next card.
This was a great explanation. Thank you. I had been a bit confused about the expenses number & what we do with the cash flow. This clears it up and makes perfect sense.
@DrFinancialLiteracy so what 3 meals do you eat for $7.14 a day? That's assuming you just drink tap water which unless you have a well there is a water bill each month. That comes out to $2.38 each meal
I saw this method with HELOC's. The object is to lower the daily balance, keeping the interest payment at a minimum while still using the CC and leaving a smaller balance at the end of the cycle. Brilliant.
I’m making notes to pay off some credit cards. I have an old truck with a lot of miles and need to get another one in the next few months. My credit score is 750 so I could probably get one now but I think I’II be better off to pay these credit cards off first then a good used truck. I look forward to working more with *web backdoors*
This has easily become one of my favourite & the realest credit repair source major level of mature grown conversations amongst legends intellectual mindsets. Different level of transparency.It’s authentic. Dope to see! Salute to the team look them up
For me it hasnt work. Its actually getting worse because I suck. I do not have the discipline. Im drowning in more debts. I dont know what to do anymore.
I just found your channel. I'm making notes to pay off some credit cards. I have an old truck with a lot of miles and need to get another one in the next few months. My credit score is 750 so I could probably get one now but I think I'll be better off to pay these credit cards off first then a good used truck. I look forward to watching more of your videos.
I'm making notes to pay off some credit cards. I have an old truck with a lot of miles and need to get another one in the next few months. My credit score is 750 so I could probably get one now but I think I'II be better off to pay these credit cards off first then a good used truck. I look forward to working more with *web backdoors*
Here’s my math…. $1900 cc#1 +$856 added to cc#1 for expenses =$2756 -$856 minus cc#1 from income =$1900 cc#1 -$911 cash flow =$989 cc #1 ending balance Isn’t it the same as paying the $911 cash flow amount???😮
That's what I was thinking too. But in her other videos like this she talks about using this strategy to cut down on interest charges because CC companies compute charges on the average daily balance. The more often you can slash the average daily balance with your income the less interest the CC company can charge overall. At least that's how I'm following it
No, if you park your paycheck on the card, you will drive down the daily balance which in turn drives down the amount of interest that you are charged monthly. You are using your paycheck as leverage against the debt, until you need it to pay a bill, to drive down the balance. Hope that makes sense.
One of my credit cards has a limit of 8k. I'm behind on my payment and now my minimum is almost $300 . I can't charge my other cards because it won't cover all monthly expenses. Please help!!
Can you recommend how best to pay off store credit cards (in what order and how)? I have two store cards (Macy's and Nordstrom) and they cannot be used to pay for other items, and of course, I wouldn't apply my paycheck to them to pay for other items. Would this be treated as a regular expense that comes out of non-credit card paying expenses? Hope this question makes sense!
This is very confusing... how do you say the expenses and cash flow and minimum payment is a deposit to the CC? She only has 911 in cash flow that's a payment but expenses are not a deposit from my understanding. This doesn't make sense sorry can you please explain? You said her CC balance is $1900 and any expenses here is going to increase the balance, not lower it.
I’m trying to understand too. But I think you take the cash that you were going to use to pay each of your bills, $856 in this example, add it to the $911 and the use all of that money to make monthly credit card payment. Yo trick bank into thinking you are making a higher monthly payment to lower the minimum payment. Then you use that CC to pay your bills spread through month. Then continue month after month, and with the $911 and the lower interest charge. You will pay off debt quicker. It still takes time though.
I was wondering the same thing. It took me a couple videos and I even did the match myself. The $1835 in this scenario is what you would need to come up with to pay the card each month. Your just combining your debts and payment you would have made into a lump sum.
You’re paying less interest so your balance goes down faster. Just keep watching the videos that apply to your situation & i think she said it takes watching 7-8 videos before u get it.
You’re not. At best you’re maybe gaining a few extra bucks a month by playing the interest games. Realistically the main thing making the balances go down is the fact that the expenses are 900 dollars less than the income.
Credit cards are just that CREDIT they aren't DEBT cards. They are express trusts, nothing is owed and all that is required is a signature on a BGC to settle the account.
Does it make any difference when the credit card payment is due every month? Right now as soon as I get paid, I just pay a lump sum toward my credit card the best I can. When does the interest get applied to a credit card? Is there a more strategic time to pay toward the credit card to mitigate the next interest fee?
Thank you for your response. I will get 90k cash soon and I have 40k in debt. do you think I should be paid all of my debt and save the 50k? thank you so much for your response. I really don't know what to do.
Yes. Pay off all your consumer/credit debt as fast as possible. Put back 6 mo living expenses and an emergency fund. The rest you can invest or play with.
Please consider showing us your calculations on how you come up with the interest in your problems. Math wasn't my best subject. I want to learn how to do the problem examples you show us.
I may be wrong but If you only use your cashflow +min payment , I'm this scenario the payment would only be 978 vs 1835 thus you would be paying more interest bc the balance will be higher
The benefit would be using a low interest rate HELOC to pay off a higher interest rate credit card debt. Velocity banking is voodoo financing for the financial illiterate.
All you need is discipline meaning don’t spend unnecessarily. And cross your fingers you don’t need new tires, car repairs and other miscellaneous things expenses like medical or dental etc. I would do this first write down a plan that your not going to eat out and that your going to penny pinch for 2 years straight. You find if you don’t do this these credit cards will never get paid because something will always come up. Other advice is get a second part-time or occasional job during this process to make up for the surprise expenses over the next 2 years
If the goal is to change the perception of the credit card company, I can understand. However, if the goal is to pay off the debt ask quickly as possible, does it not make sense to pay off the card with the highest interest no matter the balance since that is the credit card costing one the most? When the interest on a credit card raises, my scheme is to pay off at least half of the balance every month and charge no more--except for special cards that offer a promotional period for new charges.
My highest credit debt is currently with PayPal credit. I am unsure if I can even get a card from them to use. I didn’t ask or check. I’m not sure I could use that to pay expenses. Perhaps I could use it for subscriptions. Maybe PayPal credit is more like a loan. If so then I would be best looking for a PLOC that I could open and use to pay off the PayPal credit. I have never had a PLOC with a bank. I need to improve my credit a bit before going that direction. So that means I may need to start with a smaller credit card debt first. After getting questions answered about the PayPal credit. Hmm. Very interesting to think out loud like this.
Thank you for your video. I was wondering if you could help me decide on which credit card I should start with DoING Velocity Banking to switch up my scenario as I am behind two months on everything now what is my best starting position???
Thank you, Christy Vann! You have given me hope that I can finally get control of my finances. Do you have any suggestions on how to resist temptation to overuse the credit cards as the balances go down and I have more “free money.” I know this is incorrect thinking, but it’s there😢
What happens to your PLOC when you no longer need it? If you only get it to help pay off debt, you finish paying off the debt, is there a penalty for no longer using your PLOC?
I think then it comes down to how much cash flow/income you have. You would apply your available income/cash flow to the balance of the card, which would free up some available credit, which you would then use to pay your monthly expenses.
She has another video specifically addressing your question. Also I would ask for a credit line increase, I just asked my cc company for an increase and they gave it to me. Always ask for more than you need too. Hope this helps🥰
I’m self employed and get payed different days and different amounts through the month. Would this process work the same? Would I need to save my money until the end off the month to make one large payment towards my credit card?
Since you got approved for it, it's already on your credit score, you might as well use it. Build a relationship with a credit union that provides PLOCs and in a year from now apply for another PLOC. By that time you lowered your debts, increase cashflow and Hopefully increase income. Have a great day.
So are you saying do “not” pay your monthly expenses all at one time? I usually pay my bills on my payday at one time . Should I stagger paying my expenses so the average daily balance will not be as high as paying all at one time?
This don't work except for a small percentage what if you're on disability and only get 1200 a month and have $10,000 end credit explain to me how your plan works
I am glad i stumbled across your videos. I am really doing some studying. Should i transfer credit cards over to another one for 0 apr and then go get a Ploc and start the process?
Can you pre pay lump sum payments to pay utilities for months while implementing the velocity banking method ?? I did this many years ago with a tax return and had all my utilities payments covered for about 5 to 6 months and it was a good decision then for I was able to pay off a few minor debts. Now I see this velocity banking method and I kind of see how I may be able to do something similar. Would this be advisable using a credit line ??
If she pays off the credit card to make room for her livable expenses, wouldn’t the balance just be taken back out of the card again? And wouldn’t it still take just as long to pay the card off seeing that you are just making a hidden minimum payment?
Is the other credit card payments factored into the monthly expenses? Are we still making the other monthly payments that are on the left while we work on the credit card on the right?
Do you have a template for this to help us to see our numbers, and what period it will take for us to payoff our credit card? My cc is less than 10K @ 9/9%, but it's taking forever to pay it off. I'd like to understand how to do that sooner. Thank you!
I would say I don’t know how I find you on UA-cam, but I know better. My husband and I have been in prayer so that we get our credit scores up and our credit record in great shape so that we can purchase our forever home. It was no one but God that led me to *Web backdoors🕳️org* . I thank God for this wisdom. Bless you.
This has easily become one of my favourite & the realest credit repair source major level of mature grown conversations amongst legends intellectual mindsets. Different level of transparency.It’s authentic. Dope to see! Salute to the team look them up
The way I see it, it still will take time to pay off the credit card. Maybe spreading out the monthly expense between role other cards would be the same concept?
Very informative, question I have is the rent aspect I am unsure where you can find rent for $500 since the average here is around $1700 which is a pretty big difference. From a financial counseling perspective, I would advise just utilizing a debit card and save you the money in interest that you're paying, live below your means and paydown the debt. I find you cannot just move around debt if you ever want it to be gone.
Watching more of the videos on this channel will definitely help clarify the benefits of paying down debt this way---it's counterintuitive, especially when we've been programmed to throw all of our money in one-way instead of revolving it; if you already have debt, and pay your income directly into your expenses, loans, mortgages, etc. and then an emergency happens, you can't ask for your money back to cover it.
Ok question how do you pay rhe other CC. Bc you cant pay a CC with a CC. Unless u do a cash advance. And usually cash advance carry a higher % than the card unless you have one that has the same % on a CAdv. ??
Wait, so you charge 1835 on a card that already had 1900 on it, and somehow you turn around and pay just 1835 to pay off the card? Its like the CC company doesn't care about the new charges? You will still have the 1900 original balance there.
So you charge the chargeable expenses to which credit card? The highest one? That brings the balance up. If I charge to the other cards, the balance goes up there. So min payments would go up. Can you explain? Thanks.
I have one question. If my cc is attached to my checking… you say to transfer your income to that credit card but I have two options to pay this cc… pay the cc or transfer to your cc. Which one do u do? I get paid weekly. Do I transfer weekly or pay it weekly. Or does it matter ? Thank u!! A light bulb went off finding your channel! Spreading to all my friends and family! God bless you!
@@quingofcozycastle you are lucky! I live in Houston Tx away from downtown. Paying $1,200 right now and if I move the rend is up to $1500 for 1 bedroom!!
Thank you for using a more realistic income. So many I've seen have incomes of $4500 to $8600. The majority of people don't make that much and looks more discouraging than encouraging.
@rachelgoodell3877 The average American household income is $5600 per month.
@@VanntasticFinances Oh wow, I didn’t know the average American household income was $5600. I’m so glad I come across your channel, because I learn something new everyday. I look forward to catching up on all of your older videos, as well as watching the new ones.
Yes, ditto!!! This example is truly more reflective of me as well.
Hi you need assistance?
I would say I don’t know how I find you on UA-cam, but I know better. My husband and I have been in prayer so that we get our credit scores up and our credit record in great shape so that we can purchase our forever home. It was no one but God that led me to *Web backdoors🕳️org* . I thank God for this wisdom. Bless you.
Girl I just paid $350 from this week’s paycheck on credit cards! 10 minutes ago! And that’s not paycheck parking bc I paid off something last month. Thanks for all you do for the public!
This is such a good example! We can’t get a line of credit, so using a the credit card method is a good alternative.
For all of those confused - I’m trying to understand too. But I think you take the cash that you were going to use to pay each of your bills, $856 in this example, add it to the $911 and then use all of that money to make monthly credit card payment. Yo trick bank into thinking you are making a higher monthly payment to lower the minimum payment. Then you use that CC to pay your bills spread through month. Then continue month after month, and with the $911 and the lower interest charge. You will pay off debt quicker. It still takes time though.
It still doesn't make any sense. Is this working for you?
@@kalidascope2 yep, it doesn't make sense. It's better to cut expenses and increase income to pay off debt faster.
So I guess for this to work correctly you need to be extremely disciplined and not spend any extra money other than your set expenses?
Ok, I tried it for two months and it didn’t work for me. It’s better just to stick to a budget and do the snowball method to pay off debt …in my opinion.
Of course it takes discipline. Everything that involves a change in behavior is difficult at first because it involves change. My wife and I began using velocity banking two and a half years ago (6/21) when we obtained a first position HELOC in an amount large enough to pay off our existing home equity loan and all of our credit cards. Using the HELOC as our checking account has enabled us to reduce our total debt from $156000 to a shade under $32000 in only 29 months! The true beauty of this strategy is that it has allowed us to weather a few financial storms ($21000 for removal of over 60 dead Ash trees in our yard and only a few months later $6000 for the replacement of 270’ of waterline from the meter to our house and a new water heater). Did these events slow us down in our plan to get out of debt? Of course it did but without the HELOC and velocity banking we would have had to put it on our credit card and pay those exorbitantly high interest rates for years. As it stands now we are 6-7 months from paying the HELOC off.
I came across just one video by pure chance and I instantly understood you completely, and was amazed at how you opened my eyes in like 5 minutes . It is such a good thing you are doing to Help others who just don’t know any better,..I think you are a fantastic person and have a really good soul , to take the time to help so many like me who are struggling right now.
Wow! Thank you so much! I needed that! God bless you!
I like the concept of velocity banking but in every video people make it seem like we get paid once a month, in reality we get paid bi weekly and some people weekly so a better break down would be nice to see how this concept will work in real time. In 2weeks I get paid, how much is going in. What will get paid and the remaining balance. Next 2weeks I get paid what will be paid off and what is the remaining balance on the card. If that type of video can be that would be really nice.
I agree... however I just divided the income and expenses by half
This is actually a very good question and while it won’t make much difference in how the credit card works, it does change the logistics in the process! 😎
everything goes into the CC each pay check, except for expenses that can not be paid with your CC. divide that number by 2- if you get paid bi weekly and keep it in your checking. hope this helps
She is giving total monthly income. It didn't matter if its ok and a month to every week. Take an average
Great point ! I too get paid bi weekly, however if you take an average let’s say of three checks, take that average and multiply it by 26; because that’s how many payroll checks you get paid in a year; divide that number by 12; that value will be approximately what you get paid on a monthly basis.
It’s going to be pretty close.
Some checks could be lower some higher. Be conservative; or look at pay stub history and see how you can average out a few; but the important thing here is not to over shoot, just keep it simple for white board purposes, this can give you a pretty good insight after taxes what you making.
I’ve been watching Suze Orman, Dave Ramsey and quite a few others for YEARS and you’ve taught me in a DAY. I’ve shared your channel with all my children and I’ll be putting this to work starting September 1, again thanks❤
@dadamntruth8393 Thank you for the awesome compliment!
I would say I don’t know how I find you on UA-cam, but I know better. My husband and I have been in prayer so that we get our credit scores up and our credit record in great shape so that we can purchase our forever home. It was no one but God that led me to *Web backdoors🕳️org* . I thank God for this wisdom. Bless you.
You can also need to look their name up to see their website
Hi. Has this method worked for you?
This is the video I've been waiting for. So many people can't get approved for a line of credit or balance transfer right away.
Exactly and nobody mentioned that.
I started this process this month. I'm amazed at how this works. I was feeling stuck in credit card debt but now I am relieved
Thanks you a million times
Hi you need assistance?
Their customer service team was friendly and knowledgeable, and they kept me informed every step of the way.
I'm going to start my one smallest CC and see how it works. I noticed can't do carecredit though. Or can you?? I'm assuming not since isn't it a health care card??
Thank you for making these videos, I found you less than a month ago and I watched almost all of your videos and I got the concept. I am started doing VB 2 weeks ago and preparing myself to do it right. I am taking advantage of a 0% balance transfer cc to be able to pay the other cc. Again, thank you so much and God bless you!
I started VB 3 mos ago! It works! I have paid off $1,800 already. To some this may not sound like much but to me it is huge. I will be debt free soon and I'm so grateful for Christy and her channel!
@loriheller8183 THAT IS AWESOME!!! So happy for you!
One topic that is hard to understand is how when paying one CC off and moving to my next CC. Its confusing other than if the remaining balance is less that my available cash flow it just gets paid off? This transition is confusing. Can you please make a video on transitioning from one CC to another after one is paid off and what that looks like? I appreciate all you do and God Bless!
Right, that’s what throws me off too being that once her card is paid off, she would still have those expenses taken out throughout the month. How does the transition happen to another credit card to pay off. Seems like you would have to make a double payment once it’s paid off to be able to make the switch to another card and truly have the initial card paid off…That’s how I see it on my mind.
You are gaining more cash flow as you go. Allowing you to pay off the next card more quickly. If your calculation of daily interest is close they may owe you or you may owe them a tiny amount of money just a few dollars or cents. At least that’s how I’m seeing it.
Yes I have this question too.
You would have to switch your payments to the next card you’re paying off. I think the timing is key.
When you are approved for the loc you take it and pay that credit card off which is where the balance in the right column comes from. Youre eliminating the interest (and the monthly payment) from that card and transferring it to the loc. You then use your monthly income to satisfy the loc payment as well as the credit card payment thats been transferred to the loc. Remember, since this card is now paid off, whatever the monthly payment was before is now gone and added to your cashflow.
I love this channel, I started doing this method today, and it makes so much sense. I wish I knew about your page years ago.
You time and effort is greatly appreciated. The information you teach is truly priceless. I visited your website and plan on reaching out to you by the end of September in order to use your services. I hope and wish for you to also write a book 📕!! Wishing nothing but the best.
Wow, thank you
I have a line of credit but I can only transfer money in and out of my checking account. I can’t pay bills directly from the line. How does that work? Why use the LOC when I can just pay the bills out of the checking account.
@@EddyScrivner- She does not teach to pay bills directly from the LOC. You put all your income into the checking account, then transfer it to the LOC. Then, when you need to pay bills, you transfer the amount you need for bills back into the checking account, so bills can be paid on either "auto pay" or manual. The LOC protects/preserves your cash flow. Hope I could help!
@@davidsyrus3157 thanks
Phenomenal! I just asking a question on your other post regarding multiple credit cards! I am glad the algorithm sent you my way! Please keep the great content coming! 😊
Thank you, Christy! I appreciate you sharing your knowledge SO MUCH!
Lady where have you been all my adult life? Thank for the easy to understand method. I’m swinging in credit card debit. Need to pay before I retire.
Finally!!! Now I understand. I really needed this. Thank you so much!!
You’re welcome!!
a great example of the velocity banking concept!!!
I love your videos and it all makes sense. My concern is the fact we are all making the credit card companies richer AND more influential... in addition to the push for cashless, it's actually very concerning.
...I don't have the answers. These videos are all true and using credit is beneficial, the long-term consequences are also true.
I really want to try this concept to pay down debt. Could you give an example of paying off multiple credit cards that are due at different times of the month while getting paid twice a month?
First, make a realistic budget and figure out your monthly cash flow. STICK TO YOUR BUDGET!
You will need to set aside cash for items you can't pay with a credit card, like rent, house notes, and other credit card minimum payments.
Pick one of your cards to work on first. Every time you are paid, take every dime, less what you had to set aside, and pay it to that CC. Use that CC throughout the month. At the end of the month, what should remain on your card is your monthly cash flow which has paid down the balance. Repeat every month until the balance is zero, then start the process over on the next card.
You are truly such a wonderful person! I sent you an email and you answered it! I will continue watching all of your videos... Thank You!!!!!!
This was a great explanation. Thank you. I had been a bit confused about the expenses number & what we do with the cash flow. This clears it up and makes perfect sense.
Thank you so much! I've been waiting for this video. Be blessed!
You're welcome! God bless you!
No way someone eats for the whole month for 200 bucks. 50 bucks a week for breakfast, lunch and dinner. No way
@DrFinancialLiteracy so what 3 meals do you eat for $7.14 a day? That's assuming you just drink tap water which unless you have a well there is a water bill each month. That comes out to $2.38 each meal
Thank you for this example using a credit card.❤❤❤
I saw this method with HELOC's. The object is to lower the daily balance, keeping the interest payment at a minimum while still using the CC and leaving a smaller balance at the end of the cycle. Brilliant.
Thanks for sharing!
I’m making notes to pay off some credit cards. I have an old truck with a lot of miles and need to get another one in the next few months. My credit score is 750 so I could probably get one now but I think I’II be better off to pay these credit cards off first then a good used truck. I look forward to working more with *web backdoors*
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For me it hasnt work. Its actually getting worse because I suck. I do not have the discipline. Im drowning in more debts. I dont know what to do anymore.
I just found your channel. I'm making notes to pay off some credit cards. I have an old truck with a lot of miles and need to get another one in the next few months. My credit score is 750 so I could probably get one now but I think I'll be better off to pay these credit cards off first then a good used truck. I look forward to watching more of your videos.
I would like to see a scenario where the cash flow isn't there?? All funds are tied to a bill or expenses.....
She does have a video of no cash flow but it was based off one expense though.
Your videos are amazing, thank you
I'm making notes to pay off some credit cards. I have an old truck with a lot of miles and need to get another one in the next few months. My credit score is 750 so I could probably get one now but I think I'II be better off to pay these credit cards off first then a good used truck. I look forward to working more with *web backdoors*
Here’s my math….
$1900 cc#1
+$856 added to cc#1 for expenses
=$2756
-$856 minus cc#1 from income
=$1900 cc#1
-$911 cash flow
=$989 cc #1 ending balance
Isn’t it the same as paying the $911 cash flow amount???😮
That's what I was thinking too. But in her other videos like this she talks about using this strategy to cut down on interest charges because CC companies compute charges on the average daily balance. The more often you can slash the average daily balance with your income the less interest the CC company can charge overall. At least that's how I'm following it
No, if you park your paycheck on the card, you will drive down the daily balance which in turn drives down the amount of interest that you are charged monthly.
You are using your paycheck as leverage against the debt, until you need it to pay a bill, to drive down the balance.
Hope that makes sense.
One of my credit cards has a limit of 8k. I'm behind on my payment and now my minimum is almost $300 . I can't charge my other cards because it won't cover all monthly expenses. Please help!!
Can you recommend how best to pay off store credit cards (in what order and how)? I have two store cards (Macy's and Nordstrom) and they cannot be used to pay for other items, and of course, I wouldn't apply my paycheck to them to pay for other items. Would this be treated as a regular expense that comes out of non-credit card paying expenses? Hope this question makes sense!
Thank you for the great information. This is my first month trying this method.😢
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This is very confusing... how do you say the expenses and cash flow and minimum payment is a deposit to the CC? She only has 911 in cash flow that's a payment but expenses are not a deposit from my understanding. This doesn't make sense sorry can you please explain? You said her CC balance is $1900 and any expenses here is going to increase the balance, not lower it.
I’m trying to understand too. But I think you take the cash that you were going to use to pay each of your bills, $856 in this example, add it to the $911 and the use all of that money to make monthly credit card payment. Yo trick bank into thinking you are making a higher monthly payment to lower the minimum payment. Then you use that CC to pay your bills spread through month. Then continue month after month, and with the $911 and the lower interest charge. You will pay off debt quicker. It still takes time though.
I was wondering the same thing. It took me a couple videos and I even did the match myself. The $1835 in this scenario is what you would need to come up with to pay the card each month. Your just combining your debts and payment you would have made into a lump sum.
So confused 😭 how are we paying off credit cards by using the cc to pay other bills
You’re paying less interest so your balance goes down faster. Just keep watching the videos that apply to your situation & i think she said it takes watching 7-8 videos before u get it.
Ya, I don’t get it either. I just have one credit card to pay off and I don’t get it. Guess I’ll watch more videos.
You’re not. At best you’re maybe gaining a few extra bucks a month by playing the interest games. Realistically the main thing making the balances go down is the fact that the expenses are 900 dollars less than the income.
Credit cards are just that CREDIT they aren't DEBT cards. They are express trusts, nothing is owed and all that is required is a signature on a BGC to settle the account.
@@Euphoftodaywhat’s a BGC?
Does it make any difference when the credit card payment is due every month? Right now as soon as I get paid, I just pay a lump sum toward my credit card the best I can. When does the interest get applied to a credit card? Is there a more strategic time to pay toward the credit card to mitigate the next interest fee?
Always. Every payday I do my best.
Thank you for your response. I will get 90k cash soon and I have 40k in debt. do you think I should be paid all of my debt and save the 50k? thank you so much for your response. I really don't know what to do.
Yes. Pay off all your consumer/credit debt as fast as possible. Put back 6 mo living expenses and an emergency fund. The rest you can invest or play with.
Genius level math!! Thank you
@@jackiraguzman1724Thanks I will look them up
Love your financial worksheet!
Thanks so much!
Please consider showing us your calculations on how you come up with the interest in your problems. Math wasn't my best subject. I want to learn how to do the problem examples you show us.
Also I get paid twice a month with $4000 on the 1st and 1600 on the 15th. Thank you for helping us learn things that have real meaning in our lives.
Correct me if I'm wrong but, aside from the monthly payment..there is a finance charge as well. On 10k it's at least 125 a month.
Can you please explain how this method is advantageous over simply using your cash flow to pay down debt each month?
I may be wrong but If you only use your cashflow +min payment , I'm this scenario the payment would only be 978 vs 1835 thus you would be paying more interest bc the balance will be higher
This is my understanding
The benefit would be using a low interest rate HELOC to pay off a higher interest rate credit card debt.
Velocity banking is voodoo financing for the financial illiterate.
Another great video and right to the point🥰 Love it!!!❤
if you use something like stripe or square you can liquidate your cards to pay for rent or mortgage
Does she live in a box ($500)and eat top ramen($200)???
I feel like I go back in time when I watch these videos
Love the color marker
All you need is discipline meaning don’t spend unnecessarily. And cross your fingers you don’t need new tires, car repairs and other miscellaneous things expenses like medical or dental etc. I would do this first write down a plan that your not going to eat out and that your going to penny pinch for 2 years straight. You find if you don’t do this these credit cards will never get paid because something will always come up. Other advice is get a second part-time or occasional job during this process to make up for the surprise expenses over the next 2 years
I’m not getting it. I’m missing something
Keep watching more examples/scenarios and eventually it will click.
You’re doing great ❤
Thank you!!
I made a dry erase board for my velocity banking😊
Totally lost. I did not get it.
@@DrFinancialLiteracyi understand the concept thank you but not how to get a LOC.
It make totally sense!!.. thank you!!
Thanks for watching!
If the goal is to change the perception of the credit card company, I can understand. However, if the goal is to pay off the debt ask quickly as possible, does it not make sense to pay off the card with the highest interest no matter the balance since that is the credit card costing one the most? When the interest on a credit card raises, my scheme is to pay off at least half of the balance every month and charge no more--except for special cards that offer a promotional period for new charges.
$200/month for food? That's being incredibly frugal.
no it isnt. thats taking $50/week and learning how to meal prep decent food. actual frugality with food is
How can we get a personalized analysis?
Rent $500 a month!? Where dat? hahha
Probably a roommate situation. $500 is probably her portion.
That's how much my rent was, until I moved this month. The c.o.l. in an area makes a huge difference. :)
My highest credit debt is currently with PayPal credit. I am unsure if I can even get a card from them to use. I didn’t ask or check. I’m not sure I could use that to pay expenses. Perhaps I could use it for subscriptions.
Maybe PayPal credit is more like a loan. If so then I would be best looking for a PLOC that I could open and use to pay off the PayPal credit. I have never had a PLOC with a bank. I need to improve my credit a bit before going that direction. So that means I may need to start with a smaller credit card debt first. After getting questions answered about the PayPal credit. Hmm. Very interesting to think out loud like this.
I am starting to understand but how are u making money out of nowhere.
Thank you working on it !
Thank you for your video. I was wondering if you could help me decide on which credit card I should start with DoING Velocity Banking to switch up my scenario as I am behind two months on everything now what is my best starting position???
Thank you, Christy Vann! You have given me hope that I can finally get control of my finances. Do you have any suggestions on how to resist temptation to overuse the credit cards as the balances go down and I have more “free money.” I know this is incorrect thinking, but it’s there😢
You can do it! You just have to love FREEDOM, more than THINGS❤️
Pls help I’m struggling paying my credit cards 😢.
Thank you
What happens to your PLOC when you no longer need it? If you only get it to help pay off debt, you finish paying off the debt, is there a penalty for no longer using your PLOC?
No penalties…you’ll always use your lines
is it good t0 pay off your mortgage
Thing is I’m trying to solve this with the income I have and expense I pay, just need help really trying to figure this method out with my situation
What if you are maxed out on that credit card and you can't use it to charge your bills on?
I think then it comes down to how much cash flow/income you have. You would apply your available income/cash flow to the balance of the card, which would free up some available credit, which you would then use to pay your monthly expenses.
She has another video specifically addressing your question. Also I would ask for a credit line increase, I just asked my cc company for an increase and they gave it to me. Always ask for more than you need too. Hope this helps🥰
I’m self employed and get payed different days and different amounts through the month. Would this process work the same? Would I need to save my money until the end off the month to make one large payment towards my credit card?
Makes a lot of sense!!
I was approved for a Net Credit LOC for a small amount of $5000 should I take it to start off with or no????
Since you got approved for it, it's already on your credit score, you might as well use it. Build a relationship with a credit union that provides PLOCs and in a year from now apply for another PLOC. By that time you lowered your debts, increase cashflow and Hopefully increase income. Have a great day.
@@Jesus-kt5dc hey Jesus it was a preapproval so I have not accepted it yet. I just have never heard of net credit
Lets talk risk. What if they reduce your credit limit after making a huge payment.
So are you saying do “not” pay your monthly expenses all at one time? I usually pay my bills on my payday at one time . Should I stagger paying my expenses so the average daily balance will not be as high as paying all at one time?
@@jackiraguzman1724Spamming
I still didn't get it??? If you send the credit card money only to use that same money towards bills how are you paying the credit card off?????
This don't work except for a small percentage what if you're on disability and only get 1200 a month and have $10,000 end credit explain to me how your plan works
I am glad i stumbled across your videos. I am really doing some studying. Should i transfer credit cards over to another one for 0 apr and then go get a Ploc and start the process?
Can you pre pay lump sum payments to pay utilities for months while implementing the velocity banking method ?? I did this many years ago with a tax return and had all my utilities payments covered for about 5 to 6 months and it was a good decision then for I was able to pay off a few minor debts. Now I see this velocity banking method and I kind of see how I may be able to do something similar. Would this be advisable using a credit line ??
Can I just ask y’all if I don’t have any debts I have 2 credit cards good credit score but they have low available credits. What’s next…
@Clickonprofilr no
Here goes the spam accounts
If she pays off the credit card to make room for her livable expenses, wouldn’t the balance just be taken back out of the card again? And wouldn’t it still take just as long to pay the card off seeing that you are just making a hidden minimum payment?
Is the other credit card payments factored into the monthly expenses? Are we still making the other monthly payments that are on the left while we work on the credit card on the right?
Can’t read the pink lettering
Do you have a template for this to help us to see our numbers, and what period it will take for us to payoff our credit card? My cc is less than 10K @ 9/9%, but it's taking forever to pay it off. I'd like to understand how to do that sooner. Thank you!
where do you get the $48.00 in interest. Please show the calculation. Thanks
So what do you use to make those min payments on the other credit card
I would say I don’t know how I find you on UA-cam, but I know better. My husband and I have been in prayer so that we get our credit scores up and our credit record in great shape so that we can purchase our forever home. It was no one but God that led me to *Web backdoors🕳️org* . I thank God for this wisdom. Bless you.
This has easily become one of my favourite & the realest credit repair source major level of mature grown conversations amongst legends intellectual mindsets. Different level of transparency.It’s authentic. Dope to see! Salute to the team look them up
You can also need to look their name up to see their website
The way I see it, it still will take time to pay off the credit card. Maybe spreading out the monthly expense between role other cards would be the same concept?
Very informative, question I have is the rent aspect I am unsure where you can find rent for $500 since the average here is around $1700 which is a pretty big difference. From a financial counseling perspective, I would advise just utilizing a debit card and save you the money in interest that you're paying, live below your means and paydown the debt. I find you cannot just move around debt if you ever want it to be gone.
It definitely depends on c.o.l. for different areas; $500 was my rent, too, until I moved this month. :)
Watching more of the videos on this channel will definitely help clarify the benefits of paying down debt this way---it's counterintuitive, especially when we've been programmed to throw all of our money in one-way instead of revolving it; if you already have debt, and pay your income directly into your expenses, loans, mortgages, etc. and then an emergency happens, you can't ask for your money back to cover it.
Ok question how do you pay rhe other CC. Bc you cant pay a CC with a CC. Unless u do a cash advance. And usually cash advance carry a higher % than the card unless you have one that has the same % on a CAdv. ??
Thx!
Wait, so you charge 1835 on a card that already had 1900 on it, and somehow you turn around and pay just 1835 to pay off the card? Its like the CC company doesn't care about the new charges? You will still have the 1900 original balance there.
So you charge the chargeable expenses to which credit card? The highest one? That brings the balance up. If I charge to the other cards, the balance goes up there. So min payments would go up. Can you explain? Thanks.
I have one question. If my cc is attached to my checking… you say to transfer your income to that credit card but I have two options to pay this cc… pay the cc or transfer to your cc. Which one do u do? I get paid weekly. Do I transfer weekly or pay it weekly. Or does it matter ? Thank u!! A light bulb went off finding your channel! Spreading to all my friends and family! God bless you!
I feel like I’m a relatively smart guy but I’m struggling to understand. Why isn’t it better to just do the debt snowball.
It looks like you included the monthly expenses as a payment to the credit card not a charge to the credit card? Am I seeing this wrong ?
When you deposit income to Heloc do you apply it to principal or regular payment?
@Click_on_profil No!
How do I get an appointment with you
Love your stratergy but rent is not $500, not realistic
That's exactly how much I paid until I moved this month---an area's c.o.l. makes a big difference! :)
@@quingofcozycastle you are lucky! I live in Houston Tx away from downtown. Paying $1,200 right now and if I move the rend is up to $1500 for 1 bedroom!!
Makes sense ❤