the difference is that the 4% mortgage is actually 90% interest in the first 10 years (look at a mortgage calculator). so using a credit card can help you save on those 90% interest payments, since the credit card payment would be above your regular payment and would be charged 0% interest initially, since its above and beyond your monthly payment. And if takes you 6 months to clear it, then you paid 9%, which is still far lower than 90%. It actually does make some sense, although I don't think most people could handle it.
I do use my credit card to pay off my truck loan because my truck loan monthly minimum never goes down whereas my credit card minimums can be reduced with extra payments...it is a process that has allowed me to pay of a truck in 1/2 the time. I've done it twice.
@@Joce123 why not just make higher payments on your vehicle loan? That's what I'm doing, my 4 year loan is gonna get paid off in 18 months at the rate I'm going.
I think I'm approaching genius level then. Especially when it comes to this velocity banking scam. Unfortunately I have lost friendships over this and probably gonna lose more. George in this video picked a real easy person claiming to do velocity banking.But the biggest one out there that i've found is something called money max. Where you have to pay them like $1600 for their voodoo. Software to show you how to do this.
My wife and I's monthly payment was $2415 month. We would pay an extra $500 a month towards the principal. We currently just refinanced to get a lower interest rate and to get off of PMI. Our new monthly payment is $2918 a month. We plan on still paying $3700 a month but are now going to do bi-monthly payments.
Try making the payments quarterly, in addition to adding, a payment each month and watch how fast the payments begin to drop on your amortization chart. I've got one more year after starting about a year ago. The timing of the payments is everything. This is the only thing that they all leave out when doing the videos.
Instead of extra payments, I suspect you would be better off putting the $782 per month into shares of Apple and Amazon. The video more or less describes how you can get out of being a debt slave When you have cash you have options. Smart people hold on to cash. They don't instantly shove it toward debt. Once it is used to pay on the debt, it is no longer accessible.
One part of this vid that I do like is the idea of not taking on a large debt in the first place. I think there should be a balance between the amount of debt you incur and the amount of cash you can invest. I would rather have a $1000 house payment and $1000 going into stocks than a $2000 house payment and no stocks. If you have cash and you’re confused I will suggest you contact a finance advisor
Sharon Ann Meny is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
So she gave herself a cash advance, which usually has 25-30% interest with no grace period, to pay off her mortgage that has probably what 4-7% interest? Makes no sense.
@@CaseyPeters-es8eq She only has $12k of principal left on her mortgage. At that point it's almost paid off and paying almost all principal. She just refinanced $12k of debt with low single digit interest at 29%
True story: my mortgage rate is 3.125%. I can now get 4% from my Key Bank savings account (first time in my adult life that banks pay meaningful interest on regular savings accounts). So it’s actually better for me to put money in the savings account than pay off my mortgage.
@@asmodiusjones9563 Smart, just remember taxes. If you pay income tax on the 4%, your net ROI is a little less. Unless you itemize on your tax return, you get no tax benefit on paying mortgage interest. Even if you itemize, it's only a tax savings above what the standard deduction would get you. You're probably still winning but, not by as much as you think. I'm in a similar situation but, my mortgage is on a rental so it's interest is fully deductible. Also, Ally is paying 4.25% if you care.
I think the argument is that since mortgages are front-loaded amortized, 90% of your payments are interest in the beginning. So prepaying with a credit card means you only pay 10% interest (paying off a 20% a year card in 6 months)
we paid off our refinanced 15 year mortgage (2.9%) in four years.. and it feels awesome. I live in an upper middle class area and we heard over and over how lucky we were to have such a low rate and how dumb we are for doing this. but the sense of freedom, the satisfaction and the huge flexibility we have in our fixed monthlies feels even better than I imagined it would be, and i was already imagining aLOT. do it! other than getting married it's one of the best big decisions i've ever made. And we feel safer, knowing if we face job loss or other big bad things in life, our ability to manage those periods is hugely improved- just taxes and insurance. I love you George.
This. I don't understand why people keep their mortgage when they can pay it off and put their money to something else. I can't wait to pay off my mortgage and other debt! Thanks for sharing!
@@ionicatomsliterally the best part is what the Ramsey guys says happens - that deep breath you can take knowing that the house is yours. Of course I pay taxes and insurance and maintenance but just knowing that monthly mortgage obligation isn’t there. It’s helped our marriage our stress levels and our sense of security. Who can put a price on that. It took gazelle intensity and putting money from every check towards the principle but was so so so so worth it
Debt-free person here. TLDR=Do NOT do what this woman is suggesting! Follow the baby steps, like I did! By the time I got to baby step 6, I was able to pay double my monthly mortgage payment (which went to principal). Listen to George and watch another video!
the difference is that the 4% mortgage is actually 90% interest in the first 10 years (look at a mortgage calculator). so using a credit card can help you save on those 90% interest payments, since the credit card payment would be above your regular payment and would be charged 0% interest initially, since its above and beyond your monthly payment. And if takes you 6 months to clear it, then you paid 9%, which is still far lower than 90%. It actually does make some sense, although I don't think most people could handle it. Real Math Example: 100k at 8.99%. Payment = $980 30 year mortgage. 10 years in - Paid: $117,600. Balance = $88,000 So in the first 10 years you paid $117,000 but only $12,000 went to your principal. THATS 90% INTEREST in the first 10 years! Real Math Example #2: Same terms. Just pay $5k extra off per year using a credit card. 10 years in - Paid $167,600. Balance $38,000. 15 years in - Paid $251,400. Balance $0.00. You paid off your house in 15 years faster and saved $100,000 in interest. The math DOES actually math.
Her math doesn't but if you do the real math he isn't really that much better off. Frankly neither strategy means anything until the end of the mortgage.
Let me see if I get this straight: she puts $12k house payment plus $3k expenses onto her credit card, totaling $15k debt. That month, she uses her full $5k income to pay down that debt. Great. But then.... she does the same thing for the next 2 months, to knock out the $15k? She forgot about the new $3k expenses in month 2 and in month 3. That's $6,000 she hasn't accounted for in this model.
Yup. And not to mention, for her plan to make sense financially she would also need a card with a zero percent interest introductory period, and zero fees on cash advances. I’ve never heard of a card offering both those things. And judging by the fact that she doesn’t mention interest once, the whole thing smells like clickbait
@@CaseyPeters-es8eqshe said she only makes 5K per month and her regular bills are 3k……so she would only have 2k per month left over after regular bills
Mortgage rates are currently at an all time high since 2000(24 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market
True, I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.
in my opinion, it was much easier investing back in the 60s but it’s a lot trickier now, those making consistent profit in these times are professionals reason I’ve been using an advisor for the past 5 years to consistently build my portfolio in preparations for retirement.
Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with Melissa Terri Swayne for the last five years or so, and her returns have been pretty much amazing.
The concept is using lower interest debt to pay off higher interest debt. The big problem here is that credit cards have basically the highest interest rates around so if youre mortgage rate is higher than your cc rate. Your in a whole other world of trouble.
This is exactly why public schools need to be held to a higher standard. They're sending idiots out into the world thinking they know a thing or two. 🎓
I've been watching these Debt Confessions videos lately. Many of them talk about this. They keep talking about how they'll get out of debt but never stop using credit cards. Just shake my head and bite my tongue. I've been suspended from UA-cam comments a few times already.
It's not a new thing, just gaining attention lately. It works but it's being poorly explained by idiots in 60 second clips. Simple interest is not the same as amortized interest, which is the difficult part for most people to comprehend. It isn't very difficult to set up the spreadsheets to do the comparison. It used to be easy to find good information on this method but the internet is now flooded with bad explanations. It was originally proposed by an economist under a different name. I have personally done it and can confirm that "Velocity Banking" will save more money compared to making extra payments.
@@richardking4514wtf is amortized interest? That is not a thing. The payment schedule is amortized, not the interest! Mortgage interest is calculated every month based on the rate and current balance. There is no amortization of interest, only principal.
@@barnabusdoyle4930they both don’t work because at the end of the day you still have to pay the balance of the mortgage. It’s like taking out a personal loan to pay off credit cards. You still gotta pay the balance
the difference is that the 4% mortgage is actually 90% interest in the first 10 years (look at a mortgage calculator). so using a credit card can help you save on those 90% interest payments, since the credit card payment would be above your regular payment and would be charged 0% interest initially, since its above and beyond your monthly payment. And if takes you 6 months to clear it, then you paid 9%, which is still far lower than 90%. It actually does make some sense, although I don't think most people could handle it. Real Math Example: 100k at 8.99%. Payment = $980 30 year mortgage. 10 years in - Paid: $117,600. Balance = $88,000 So in the first 10 years you paid $117,000 but only $12,000 went to your principal. THATS 90% INTEREST in the first 10 years! Real Math Example #2: Same terms. Just pay $5k extra off per year using a credit card. 10 years in - Paid $172,100. Balance $38,000. 15 years in - Paid $258,150. Balance $0.00. You paid off your house in 15 years faster and saved $100,000 in interest. The math DOES actually math.
@@AlexPerazaTV except you, like everybody who subscribes to this, are completely ignoring the interest charges on the credit card. I will grant you this - the strategy works if and only if the interest on the credit card is lower than the 8.99% you are assuming on the mortgage. If the credit card is 20% + like many cards, you’d be better off just applying that extra money directly to the mortgage.
23 yrs ago We paid extra payments on our 10yr 6.75% mortgage and paid it off in 2yrs and 11 months. We had a poster on our fridge showing the declining balance every month. People thought we were nuts. We only did things that were free for those years, lived off of beans and egg fried rice. Never ate out, bought nothing, no vacations handmade cards for birthdays and holidays. When we burned the mortgage everyone thought we were brilliant all of a sudden. Dave Ramsey is the reason we have financial independence today. We still live well below our income.
@@AtlChica883 His advice has helped a group of non-high wage earners. It works. This is real life experience, not theory. Our experience and that of some friends and coworkers who gave it a shot and are now in a much, much better financial situation. People love to try to 'debunk' him, but if people actually follow his advice rather than just critique it, it's effective. Those who teased us for it are still whining about him. We just smile.
Unfortunately, it’s not only on TikTok. I actually found about velocity banking here on UA-cam. I can’t recall the name of the channel off the top of my head, but I’m gonna go back and find one of the videos. I thought I was stupid because no matter how many times the lady explained what she’s doing and how VB works, it just wasn’t adding up for me. This video helped me realize Im not slow 😂
Wait! if I’m not mistaken she said her bills were. $ 3000 and her positive cash flow was $5000, altogether her total income was $8000, If that’s the case all she had to do is use $ 4000, of her positive cash to pay of $ 12k within the same time of 4 months without doing all and keeping $1000 to herself in case of emergencies
I was thinking the same thing. Cash flow isn't your paycheck, it's cash leftover after everything else. And with that much cash flow she could've just paid $4k to the principle each month and actually had more money after three months then using a CC!
Do you have any idea how interest works on two completely different concepts? For a 200K mortgage balance, a 5% APR on that balance is $10,000. Your credit card limit is likely NOT $200k. There is no possible way to accrue more in interest payments on a credit card balance that is way below your mortgage balance. Considering you MAXED out a credit card balance at 10K and even assuming the balance remained 10k for the entire year without paying a dime on it still ends up at $2,200 (22%) in interest payments. So if you're using your credit card to pay down your principal you come out saving on interest while making bigger payments on the mortgage balance.
She's dropping her mortgage balance so if she has an emergency and that's an if she could always call her mortgage company and they could always recast her mortgage for her and drop her mortgage payment by hundreds of dollars a month, and all it takes is a simple phone call. What's risky is paying interest.
@michaelb.8953 you can also drop your balance by paying more towards your principal every month. Then you don't have thousands of dollars on a credit card that probably has a 18-20% interest rate. I'd rather pay 6% interest then be in the hole thousands on a credit card I can't pay back. Idk if you really understand what risk is...
@@jessicabrittany1682 I don't think you actually read my comment properly, but that's okay. I'm actually not taking one side or the other as all I'm doing is pointing out that if she has an emergency she does have an option that may soften the blow. I actually wouldn't do what this girl is doing myself as it's not really saving her much if any money at all. If you were looking for someone here to jump down their throat about velocity banking I'm glad I was here to give you the perception of puffing up your ego feathers.
@@michaelb.8953it will soften the blow, but she would have to pay the credit card, mortgage (even if it is less than before) and living expenses. If she makes 2000 in extra payments she would have still less mortgage and no credit debt to pay.
I paid off a modest 10 year mortgage which I'd taken out in June of 2020 on the penultimate day of 2022: 2 years, 6 months and 13 days. Overpay, overpay, OVERPAY. Every spare penny that I had - went on the mortgage. My friends thought I was mad - but I am completely and utterly absolutely and entirely debt free! I earn LESS than the average income in the UK. I live alone. What did I find to do which was very inexpensive rather than go to the shopping malls and eateries? _ ride a bike most evenings and when not riding a bike I've learnt how to speak Spanish and an now polishing up my very rusty French - this costs me less than £20 a week!!!! I am now saving more than half my wages into an ISA. If I can do this then SO CAN YOU!
i overpay my mortgage but if i pay off more than 10% a year they charge me the interest they would have earned on the overpayment anyway, gunna take roughly 7 years
@@Trapz4Dayz A lot of them are jealous and a lot of them keep telling me I don't know how lucky I am now that interest rates have gone up. Of course I've been lucky - I've enjoyed the luck my behaviour engendered; I am not being sucked dry by the banking industry. As Dave Ramsey says "I have money" (But mine has pictures of our late Queen on it).
You may have made a mistake if your mortgage rate was below 3 or 4 percent. I also bought my house in 2020 and have a mortgage below 3 percent; I wanted to pay my mortgage off early, but realized it really wouldn't benefit me and I could earn a higher rate of return investing- not to mention the fact that I would lose the interest deduction when I file my taxes.
shes not making any sense at all. Also, with her math, you essentially pay 21-30% interest a month for 3 months while paying off the CC bill of $15k. Thats WAAAYYY higher than mortgage interest. Whoever told her to do this...I cant even.
Getting out of debt is boring but rewarding. Being a responsible adult in general is boring. Sometimes I miss the not even paycheck to paycheck life cause it was wild and fun… but then I remember how nice it is to not have an existential crisis over every minor surprise expense.
I’ve been in banking for 5+ years, & I’ve never seen a credit card where you can pull from where there wasn’t a fee, & a higher interest charged for pulling “cash” out 😂 I have no idea what she was talking about
@@CaseyPeters-es8eq I mean, you could do it with a LOC in theory, but the perks & math aren’t there. The draw for credit card usage are the perks: points, cash back (which suck people into an endless loop of doom & gloom typically.) For an LOC, there aren’t any perks to benefit from, & yeah you aren’t hit with any draw fees, interest (typically) starts accruing the day you draw funds on it. Traditional LOC’s are also not collateral based, so there’s a higher interest rate you pay anyway. (I.e. let’s say someone’s mortgage rate: 6%, but their LOC rate is 16%, why pay 10% more?) I started out in a credit union, & people try to get “creative” with things that just don’t work. Please note, I don’t ascribe to everything that the Ramsey team gives out, but I’m a HUGE advocate for like 90% of philosophy they have because it works. 😅
@@CaseyPeters-es8eq (sorry for that long response) 🤦🏻♀️ if someone is really wanting to pay off their mortgage faster, what George Kamel is saying is a good idea. What someone could also do is just put any additional money that would go into the mortgage into a regular brokerage account at like Fidelity, Schwab or whatever, put it into like an S&P 500 with low cost, and when there’s enough money there (or more) & you’re ready to pay it off, then go for it. (Just save enough money for any taxes on gains when funds are pulled out.) yeah, you pay the gov. Or whatever, but you’re still WAY up from paying interest on the bank, who’s been the real leech on you for years 😂
The only thing she could be referring to is a 0% APR offer where they do allow you to deposit it to your bank. Albeit, there’s usually a 3-4% fee for this.
There is software called "online check writer" where you can use your credit card and it will issue cashable checks. And you wont pay the extra fee. Also you can just Paypal a friend and have access to your money with no extra fee.
Even in the best scenario: you get a 0% interest check offer from your credit card, you’re still getting hit with the upfront 5% fee just to write the check, which is probably a higher rate than your mortgage
some credit cards do not charge a balance transfer fee the person doing the TikTok clearly didn't know this any I think they made the video for clicks.
I got an offer with 0 interest but with 3% fee. If borrow the funds and pay them back within 12 months, it saves more than the mortgage interest I would be paying in the 12 months and about $13K over the life of the mortgage. that being said, it is a risk to take out this money because if i dont pay it back in 12 months, boom 21% interest rate!
I’m not here to be a negative Nancy, but when she says $5000 cash flow, that just means after her bills, so she makes $8000 a month. She just said it in a stupid confusing way
No, if you go to her Instagram, she means $5,000. By positive cashflow, she meant her income and she puts all her bills (monthly payment, utilities, etc) on her card. When someone questioned her in the comments about her not fully paying off her balance in 3 months because she kept adding all her monthly expenses back onto the balance and she really wouldn't pay off her 15k balance in 3 months. She responded that because she was putting all of her 5k a month, her "initial" 15k would be paid even though she would still have a balance of 9k+ (assuming no fees, 0% interest) because, in reality, she was only paying 2k extra per month.
@@MsMockingbird06it's not a game. Paying the principal first pushing your further down the amortization schedule, forgoing paying interest. It's simple math if people would just slow down and stop confusing income and cash flow.
@@GeorgeKamelthank you George for bringing me a ton of business to my channel Velocity banking needs to be taught better unfortunately a lot of people are doing bad math on both sides. If you want to have a discussion with someone on the other side I’m available.
It’s been 2 weeks since I stumbled across the Ramsey clan, and I already feel at home since y’all talk about money/debt/finance the EXACT same way I’ve always felt! However, being a “cash is king” kind of guy, I always felt like a weirdo, since all my family, friends, and even spouse subscribe to the “credit cards/car loans/endless payments are normal” lifestyle and way of thinking. And as entertaining as it can be listening to Dave’s often overly political, arrogant & demeaning rants, George is my guy (Rachel’s amazing as well!), and I now look forward to his content daily!
I was sent this a ton as well 😂 I was dying when I seen this being a financial literacy channel I broke down the numbers as well and was like WTF that does not add up! 😮
I'm happy you addressed these velocity or credit card gimmick that are click bites for some youtubers. Extra payments towards the principle are definitely the way to go.
Been looking forward to a velocity banking mortgage video. Here for the comments now...BTW Chili's used to have a weekly all you can eat fajitas night in the 90s (forget which day of week). Our high school volleyball team got our money's worth way back when. And as a parent, you're spot on about common core.
I thought generally the interest charged on unpaid short term credit card debts were significantly higher than those charged on long term mortgages using your house as collateral. So you’re almost inevitably just creating a higher interest rate until you can afford to pay the debt off. So not sure I understand remotely what would ever be achieved by this.
My mom gets these 1 yr 0% APR checks from her credit card. Sure they are a trap for most people. She basically did a similar thing on a camper. She's an accountant she calculated out what she was going to put towards extra payments that year. Wrote it out, cashed the check wiped out $7k off the loan. Saved $600 in interest. To me it seems like a lot of B.S. to save a few hundred bucks.
Had a guy who claimed to be a Ramsey FPU instructor and he stopped because he believed in the HELOC banking scheme. He tried to explain it to me and said that it takes discipline. I never tried it. We're on a 15 year at 2.25% I pay extra it should be done in 10 years by 55. But then my wife will want another house.🤦♂️
So glad you covered this. I clicked on what seemed like a normal finance video where some blonde lady explained how to pay off her mortgage with a HELOC. It made no sense and because I watched it, I kept getting fed velocity banking content. The math never seemed to add up and it seemed extremely shady. Is this an MLM? Are they getting paid by the CC companies? So wild that some people are probably falling for this.
I don’t believe using a HELOC to pay off your mortgage isnt necessarily a scam. It’s kinda complicated and I don’t know what that person was selling but when I worked for a credit union a few years ago it seemed like a decent idea.
@@TheJulior1983 It mostly just feels scammy because most of the people I see pushing the velocity banking concept seem like snake oil salesmen. It also add such a degree of complexity to your budgeting that it seems like a very bad thing to try to manage when you consider how bad most people are at budgeting in the first place.
There is a UA-cam velocity banking channel called "VANNtastic". It seems legit, if convoluted. The idea is the HELOC is simple interest, while a mortgage is amortized and very front-loaded with interest. So you put your whole paycheck against the HELOC every month, and pay all of your bills out of it as well. The trick is, most people who are in a sticky financial situation to begin with don't have the discipline to only spend X amount each month if they're spending it from a HELOC and not their checking account. So really there are a variety of ways to get back on the right side of the ledger if you're in debt, but any of them require discipline/ change of course from the direction you were headed previously.
We paid a 30 yrs MTG off in 13 years, take the monthly mortgage payment and multiple x14, that pays 2 months in pure principle, by the time we had saved enough in our savings account and lowered our MTG, we paid it off. Step 7 is AWESOME!!!!!! Love IT (we could have done it faster if we would have known about Dave Ramsey's Baby Steps earlier in life)
She's putting her $3,000 monthly expenses on there as well. So the net progress is $2000 a month. It'll take six months to pay off that $12,000, not three. At credit card interest. You just negated any savings by prepaying by doing this. It's only a viable strategy if you can get an interest rate that is similar to or lower than your existing mortgage. And even then, it's not really worth it IMO. Most people are better off just paying extra on their mortage if that's what they want to do.
@CaseyPeters-es8eq l do. You're making an assumption that she's using cash flow correctly. But even if it's $5k a month, I'm here to tell you the daily accrued interest on that decreasing cash advance balance even over three months plus the cash advance transaction fee is going to be more than what you're saving in accrued mortgage interest. Doing this with a HELOC is one thing... doing it with a credit card will not yield savings after huge cash advance rates and fees. I'm expressing my opinion here. If you don't agree that's fine, no need to make it personal.
Yes, the number one thing they all leave out on velocity. Banking videos is the cost of the money. They only show you the cash flow like. Oh, you're gonna save this much money because you put all your bills on to this Of credit that cost more than the old line of credit and they're confusing the savings of cash flow with savings on interest.
Moving debt around from one basket to another doesn't pay off debt. Pretending your savings account is a deduction off your mortgage is playing games, not actually paying down debt. You can do the same thing by simply calculating your net worth in a spreadsheet by adding and subtracting.
You are so right about all they're doing is moving money around. I say it's like the old-fashioned gambling game where see the ball under the coconut shell. Now, where did it go?
2 years ago we started with a 30 yr mortgage. We are now at 17 yrs left… our plan is 5-6 years *TOPS*. We chose accelerated weekly mortgage payments, we double each payment *and* we’re saving enough to put down a 10% lump sum on our yearly anniversary date. So far, so good and we are on track for that 5-6 yr goal! 🙌🏻 We keep a very tight budget, but we have no doubt that it’s going to be worth it in the long run!! PS - NO credit cards needed. 😉 Just determination & self control!
I'm glad you are talking about this. I've seen this velocity payoff here lately. I don't get it at all. One lady was also using velocity to pay off credit cards. She was putting all her bills on one card and then saying you keep doing that until it pays off. I was thinking WHAT?!
Make sure you read the contract when you get the mortgage and see if there is a prepayment penalty and see if it is a percentage then do the math and find out what it would be and also look at the amortization schedule and see if the total amount of interest is worth it. Also if your mortgage payment is less than you were paying in rent just pay what you were in rent to pay it off faster. I only paid 5 dollars extra in principle every month for 1 year and that has shaved 1000 of interest off of my mortgage. 60 dollars extra in 1 year will save me 1000. So 1000- 60= 940 in my pocket later
What she said is take the $3000 in bills which most likely doesnt all come out at the same time and put it on her credit card. This way when she makes the $5000 she can apply that directly to her credit card. Ive watched a few velocity banking videos and this is usually how it works. Also usually people use this method to raise their credit score. But yeah most of the points you made are correct
I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?
"Overall, buyers hold a lot of the cards right now, and sellers are having to give out more concessions to close a deal." All the best, buying on sale is actually one of the best ways to invest in stocks, and advisors are ideally suited for such task
Especially because their expertise is centred on short- and long-term holdings for profit realization and because of their distinctive research, it is nearly impossible for them to underperform, I prefer to seek the advise of financial consultants when making my daily investment decisions. My consultant and I have been investing together for a little over two years and we have already produced sizeable net profits..
A consultant's expertise is centred on short- and long-term holdings for profit realization and because of their distinctive research, it is nearly impossible for them to underperform, I prefer to seek the advise of financial consultants when making my daily investment decisions. My consultant and I have been investing together for a little over two years and we have already produced sizeable net profits..
I'm not sure whether I'm permitted to say this, but I'd suggest searching for “Sonya lee Mitchell” as she gained a lot of attention in 2020. She is both my coach and the manager of my portfolio.
My bet is what she’s really talking about is to max out your credit cards to pay down your mortgage, and then default on the credit cards and claim bankruptcy.
Who else watching this video is confused out of their minds. It's so complicated of a method. Just don't have credit cards in the first place. I got rid of my last credit card 2 years ago, and we're almost done paying off my wife's last card. One less bill, one less thing to track = more simple tracking of money and no debt! Thank you for making these videos! Please keep educating!
You absolutely make serious topic and very educational videos so much fun to watch!!!! Finally something I can feel comfortable sharing with my young 20 something kids to help steer them in the right direction financially!!!!
When she said she'd put all five thousand dollars a month towards the credit card, neglecting her normal three thousand expenses, I couldn't help cringing b
I don’t understand why you would move your debt from a low interest loan to a credit card, which is just a high interest loan. Like, I genuinely don’t see what this is supposed to accomplish. And I actually use credit cards for some things.
The difference is one is simple interest vs compound interest so in the first fifth part of your morgage life you pay 80% of the interest of the mortgage s life
@@justingorman1733 Ah, I see. I did know that some people use balance transfers with promotional 0% interest to pay off credit card debt, but using it for a mortgage seems absolutely nuts to me.
I cannot understand why someone would think paying off their mortgage with a credit card would be a good idea. If it was a good idea to begin with, why not just buy the house with the credit card?
People in the comments of other VB videos think they are Fing the banks by using VB. Like all they are doing is incurring more costs on themselves and hence more profit for the banks!
Please quit confusing people with logic:) Everything you say is true. We just pay as much extra principal as we can each month and as early as we can each month. We should have ours paid off in about a year. I love your videos...and I'm almost 70, so you are reaching a wide demographic.
I'm a big fan of using credit cards, with discipline. Use them the exact same way you would as if it were a prepaid card, never spend more on them than you have to pay them off, and now you have an instant discount on everything that you purchase (yeah, you aren't going to get rich on cashback rewards, but free money is free money as long as you pay in full, which you will if you are disciplined about it), free purchase protection, and since you are paying off that card in full every month, an amazing credit history when you do apply for a mortgage.
Officially my favorite of your videos (of all-time). You cleared up a lot of questions I had about that so-called strategy. Word to everyone in that cash flow struggle!
I've taken the time to dive deep into the velocity banking strategy and really try to understand what it's all about. Intuitively it makes no sense but after all of my time and research into the strategy I can comfortably say that velocity banking makes no sense. Seriously though the whole strategy is weird because you constantly pay high interest on large sums of money, you lock up your income (cash flow), and god forbid you have an emergency happen whereas now you have large sums of debt on expensive credit cards that demand a large portion of your income (cash flow) on top of obviously needing to pay bills. Whatever you do in life do not do velocity banking.
@mattbrown4631 I did the same. When I first saw some of these velocity banking videos, I realized that it had to be a scam (or most likely mathmatically illiterate) so I took a closer look. I noticed in all of their examples, they never take into account any credit card interest or fees, so when they send the monthly payment to the credit card the entire amount is applied to amount owed.
Look at it this way. A mortgage is a 30 YEAR contract and (let's say a LOC [line of credit]) LOC is a 30 day contract. When you make a payment to a mortgage, you pay a portion based on your 30 YEAR contract. When you make a LOC payment, it's based on the 30 day contract. So like you'd rather pay taxes on a seed (30 days) than the crop (30 years) [metaphor for why ROTH is better than traditional] the interest on a LOC is smaller than the interest on a mortgage. Making principal payments via the LOC will push you ahead on the amortization schedule faster than making normal payments. For example, if your mortgage payment is $1000. Your first mortgage payment will be about $925 in interest and $75 towards principal. It will take you about 15 years for your payments to go half to principal/ half to interest. Just by changing your habits and not your income, you can move quicker down the amortization schedule. I'm living proof. I paid off my 210K mortgage in 36 months. Back to baby step 7. I implore you to look again at Velocity banking.
@@HurtzillaThis is still not clear to me can you expound on this with numbers? You mention a mortgage payment of $1000 ($925 interest, 75 principal). That I understand, although knowing the interest rate and principal owed would be better. How much are you pulling from a LOC to pay towards the mortage, what is the rate on the LOC, when does the LOC need to repaid? (30 days?) thanks.
@@MaxGrey03 just go on a mini UA-cam binge of Velocity banking. It'll eventually click. The Kwak bros, Vann financial, etc.. there are plenty. The mind F is, simple interest vs amortized interest. The best way I can simply describe it is: Simple interest is a monthly term (1/12) Amortized interest is a 30 yr term (1/360) assuming a 30 year mortgage. Meaning a 20% APY CC can be > 6% fixed rate 30 year mortgage Yes 20 is a bigger number than 6. But when you make payments to the 20% APY, you're only paying for 1/12 of the annual (meaning if you held the balance for a full year) interest vs. when you get a mortgage, your interest for 30 YEARS is factored into your first and every payment. All 360 of them! Remember: cash flow = money remaining after all monetary obligations are fulfilled. Hence this cash continues to "flow" and is not stopped by obligations. If you have $1000 a month of cash flow. If you were to borrow 12K, you could pay that back with your cash flow in one year without earning any additional income. All velocity banking does is allow you to move 12K (in this example) down the amortization schedule first, then you pay that money back. Meanwhile your monthly payments are more powerful because you're further along the amortization schedule. Go to bankrate or google "amortization calculator" to see how the first 15 years of a 30 year mortgage, sooooo much of your money goes to interest. It's mind blowing. Latin root words: A : meaning not/non. Like Amoral or Asexual Mort: meaning death. Like Mortician or Mortuary Put them together: Amortization A-mort-ization Not/non death (dying) loan 🤯
@@MaxGrey03 CC interest happens, but it pales in comparison to the interest of a mortgage. Same goes for fees. The first payment of a 30 year mortgage is about 87% INTEREST. That can easily be $1500. The interest on a 15K balance 20% APY CC would be $250 a month. That's 1/6 the interest vs a mortgage. It's no scam, who's benefiting? Follow the money! Like Dave Ramsey says, the banks have bigger houses than us. They made the system for profit. Of course it's going to benefit them. If you can't manage borrowing by all means don't. But if you're one of the minority and can, velocity banking is for you.
@georgekamel I think she may have been trying to say “disposable income” when saying “cash flow” which means her total income would be $8,000 per month - Which still doesn’t make this “velocity banking” sensible… Still hogwash
Great job debunking this! Totally agree with your point. Quick note, your math is a little off though. It's not 8 months, it's 6 months. 1st month = $5,000 (expenses were on credit) 2nd month = $2,000 ($5k-$3k) 3rd month... etc. 5+2+2+2+2+2= 15. Meaning that paying extra ($2,000) every month also gets her the promised $12,000 ($2k x 6 months). But then the fees and risk for absolutely no reason makes her strategy less than useless.
George is very intelligent and funny as heck! 🤩 This ‘mortgage hack girl’ is a true nutcase, no way her advice made any real real world sense!!! The astronomical fees associated with credit card cash advances makes this ‘hack’ dead in the water ☠️
I’ve been following a couple of velocity banking channels and I agree with you. The complexity of juggling the debt and income and interest and on and on and on just seems like sprinting uphill! But this system has its own cult following and I realised it’s better just to move on to a more sensible, simpler life. I paid off my mortgage early, by paying it early. Saved thousands on interest. It was amazing!🙄
I imagine at the end of her video, she had a link to her website where she could teach folks how to do what she did for a small fee, lol. I personally liked the song at the beginning.
Quick tip: to pay off your mortgage, you need to pay the money which is owed on the mortgage. There is no alternative.
I wish I could like this more than once!
And as fast as you can
You could die. Then you don't need to pay it anymore.
That's our baby step right now, we are throwing every penny into it! Love seeing that number go down down down 🎉🎉🎉
But my 3.69% interest rate? What will I do without it?
Using a 22% credit card to pay off a 4% mortgage, BRILLIANT!
😂😂😂😂
😂😂😂😂😂😂
the difference is that the 4% mortgage is actually 90% interest in the first 10 years (look at a mortgage calculator). so using a credit card can help you save on those 90% interest payments, since the credit card payment would be above your regular payment and would be charged 0% interest initially, since its above and beyond your monthly payment. And if takes you 6 months to clear it, then you paid 9%, which is still far lower than 90%. It actually does make some sense, although I don't think most people could handle it.
I do use my credit card to pay off my truck loan because my truck loan monthly minimum never goes down whereas my credit card minimums can be reduced with extra payments...it is a process that has allowed me to pay of a truck in 1/2 the time. I've done it twice.
@@Joce123 why not just make higher payments on your vehicle loan? That's what I'm doing, my 4 year loan is gonna get paid off in 18 months at the rate I'm going.
Stupid people approach everything with confidence. Smart people approach everything with a doubt.
Well said😊
I like that!!! Will be stealing it 😂❤
Ramsey people are bad at math. This is a fun lesson that few learn.
I think I'm approaching genius level then. Especially when it comes to this velocity banking scam. Unfortunately I have lost friendships over this and probably gonna lose more. George in this video picked a real easy person claiming to do velocity banking.But the biggest one out there that i've found is something called money max. Where you have to pay them like $1600 for their voodoo. Software to show you how to do this.
I'm not sure what's scarier - the people on TikTok GIVING financial advice, or the people watching TikTok TAKING this advice.
😂😂😂😂
Yes.
you could say the same about yt tbh
Where I'm from, it'd be called an idiot tax
They deserve each other 😂
My wife and I's monthly payment was $2415 month. We would pay an extra $500 a month towards the principal. We currently just refinanced to get a lower interest rate and to get off of PMI. Our new monthly payment is $2918 a month. We plan on still paying $3700 a month but are now going to do bi-monthly payments.
Try making the payments quarterly, in addition to adding, a payment each month and watch how fast the payments begin to drop on your amortization chart. I've got one more year after starting about a year ago. The timing of the payments is everything. This is the only thing that they all leave out when doing the videos.
Instead of extra payments, I suspect you would be better off putting the $782 per month into shares of Apple and Amazon. The video more or less describes how you can get out of being a debt slave When you have cash you have options. Smart people hold on to cash. They don't instantly shove it toward debt. Once it is used to pay on the debt, it is no longer accessible.
One part of this vid that I do like is the idea of not taking on a large debt in the first place. I think there should be a balance between the amount of debt you incur and the amount of cash you can invest. I would rather have a $1000 house payment and $1000 going into stocks than a $2000 house payment and no stocks. If you have cash and you’re confused I will suggest you contact a finance advisor
Market behavior can be complex and unpredictable. Mind if I ask you to recommend this particular coach to whom you have used their services?
Sharon Ann Meny is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I paid off my mortgage in May (245k took 9 years instead of 30). Used my own money, not others.... 😅 Worked great!
Congrats!! I'm finishing year 8 of owning my home... $160K left to pay out of $255K at the start. 🙌🏼💵
No. It is all abolt getting rid of the monthly payment that never goes down ..no matter how much you pay..Credit card minimum payments go down.
So she gave herself a cash advance, which usually has 25-30% interest with no grace period, to pay off her mortgage that has probably what 4-7% interest? Makes no sense.
@@CaseyPeters-es8eq She only has $12k of principal left on her mortgage. At that point it's almost paid off and paying almost all principal. She just refinanced $12k of debt with low single digit interest at 29%
I mean she's not wrong. She did bring her principal down faster. She traded 100k at 3% for 100k at 29%.
True story: my mortgage rate is 3.125%. I can now get 4% from my Key Bank savings account (first time in my adult life that banks pay meaningful interest on regular savings accounts). So it’s actually better for me to put money in the savings account than pay off my mortgage.
@@asmodiusjones9563 Smart, just remember taxes. If you pay income tax on the 4%, your net ROI is a little less. Unless you itemize on your tax return, you get no tax benefit on paying mortgage interest. Even if you itemize, it's only a tax savings above what the standard deduction would get you. You're probably still winning but, not by as much as you think. I'm in a similar situation but, my mortgage is on a rental so it's interest is fully deductible. Also, Ally is paying 4.25% if you care.
I think the argument is that since mortgages are front-loaded amortized, 90% of your payments are interest in the beginning. So prepaying with a credit card means you only pay 10% interest (paying off a 20% a year card in 6 months)
we paid off our refinanced 15 year mortgage (2.9%) in four years.. and it feels awesome. I live in an upper middle class area and we heard over and over how lucky we were to have such a low rate and how dumb we are for doing this. but the sense of freedom, the satisfaction and the huge flexibility we have in our fixed monthlies feels even better than I imagined it would be, and i was already imagining aLOT. do it! other than getting married it's one of the best big decisions i've ever made. And we feel safer, knowing if we face job loss or other big bad things in life, our ability to manage those periods is hugely improved- just taxes and insurance. I love you George.
This. I don't understand why people keep their mortgage when they can pay it off and put their money to something else. I can't wait to pay off my mortgage and other debt! Thanks for sharing!
What do the doubters say when you tell them how much MORE money you'll be able to invest over the 9 years you would have been paying a mortgage?
@@ionicatomsliterally the best part is what the Ramsey guys says happens - that deep breath you can take knowing that the house is yours. Of course I pay taxes and insurance and maintenance but just knowing that monthly mortgage obligation isn’t there. It’s helped our marriage our stress levels and our sense of security. Who can put a price on that. It took gazelle intensity and putting money from every check towards the principle but was so so so so worth it
2.9% is exactly 2.9% higher than 0%
On track to pay off our 30 year mortgage in 8 years. 31k remaining. Will be thrilled when it is conquered and hits zero.
Debt-free person here. TLDR=Do NOT do what this woman is suggesting! Follow the baby steps, like I did! By the time I got to baby step 6, I was able to pay double my monthly mortgage payment (which went to principal). Listen to George and watch another video!
My wife showed me this over the weekend.... I told her this was thee craziest thing I've ever heard. That math wasn't mathing!
Yeah if you actually listen to what shes saying. Like wtf!? 😂
the difference is that the 4% mortgage is actually 90% interest in the first 10 years (look at a mortgage calculator). so using a credit card can help you save on those 90% interest payments, since the credit card payment would be above your regular payment and would be charged 0% interest initially, since its above and beyond your monthly payment. And if takes you 6 months to clear it, then you paid 9%, which is still far lower than 90%. It actually does make some sense, although I don't think most people could handle it.
Real Math Example: 100k at 8.99%. Payment = $980
30 year mortgage.
10 years in - Paid: $117,600. Balance = $88,000
So in the first 10 years you paid $117,000 but only $12,000 went to your principal.
THATS 90% INTEREST in the first 10 years!
Real Math Example #2: Same terms. Just pay $5k extra off per year using a credit card.
10 years in - Paid $167,600. Balance $38,000.
15 years in - Paid $251,400. Balance $0.00.
You paid off your house in 15 years faster and saved $100,000 in interest. The math DOES actually math.
Her math doesn't but if you do the real math he isn't really that much better off. Frankly neither strategy means anything until the end of the mortgage.
Credit card company: how good is your math?
Lady: yes
“How good is your math?”
“The Declaration of Independence.”
Let me see if I get this straight: she puts $12k house payment plus $3k expenses onto her credit card, totaling $15k debt. That month, she uses her full $5k income to pay down that debt. Great. But then.... she does the same thing for the next 2 months, to knock out the $15k? She forgot about the new $3k expenses in month 2 and in month 3. That's $6,000 she hasn't accounted for in this model.
Yup. And not to mention, for her plan to make sense financially she would also need a card with a zero percent interest introductory period, and zero fees on cash advances. I’ve never heard of a card offering both those things. And judging by the fact that she doesn’t mention interest once, the whole thing smells like clickbait
@@CaseyPeters-es8eqshe said she only makes 5K per month and her regular bills are 3k……so she would only have 2k per month left over after regular bills
Not including the interest on the $10,000 or the $15,000 that she borrowed plus the fees
yup, and it wouldn't surprise me if some people actually tried this thinking it was a good idea.
Re-inventing maths…
Mortgage rates are currently at an all time high since 2000(24 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market
The stock market is no different, to maintain profit, you need to have some in-depth knowledge on the market
True, I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.
in my opinion, it was much easier investing back in the 60s but it’s a lot trickier now, those making consistent profit in these times are professionals reason I’ve been using an advisor for the past 5 years to consistently build my portfolio in preparations for retirement.
my partner’s been considering going the same route, could you share more info please on the advisor that guides you.
Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with Melissa Terri Swayne for the last five years or so, and her returns have been pretty much amazing.
The concept is using lower interest debt to pay off higher interest debt. The big problem here is that credit cards have basically the highest interest rates around so if youre mortgage rate is higher than your cc rate. Your in a whole other world of trouble.
You're comparing apples to semiconductors. Not the same.
This is exactly why public schools need to be held to a higher standard. They're sending idiots out into the world thinking they know a thing or two. 🎓
Dude you sound like such a major boomer
I know a thing or two about a thing or two.
LOl @ thinking the government can/wants to educate people
That's not school's responsibility. That's parent's responsibility
Well yeah, I mean they sent you into the world, didn’t they?
I've seen this Velocity principal a lot recently. Really glad to see someone exposing it for what it is. You rock George !!!
I’ve seen this using HELOCs, which would be better then using a credit card but it’s still usually better to just pay more against the mortgage
I've been watching these Debt Confessions videos lately. Many of them talk about this. They keep talking about how they'll get out of debt but never stop using credit cards. Just shake my head and bite my tongue. I've been suspended from UA-cam comments a few times already.
It's not a new thing, just gaining attention lately. It works but it's being poorly explained by idiots in 60 second clips. Simple interest is not the same as amortized interest, which is the difficult part for most people to comprehend. It isn't very difficult to set up the spreadsheets to do the comparison.
It used to be easy to find good information on this method but the internet is now flooded with bad explanations. It was originally proposed by an economist under a different name. I have personally done it and can confirm that "Velocity Banking" will save more money compared to making extra payments.
@@richardking4514wtf is amortized interest? That is not a thing. The payment schedule is amortized, not the interest! Mortgage interest is calculated every month based on the rate and current balance. There is no amortization of interest, only principal.
@@barnabusdoyle4930they both don’t work because at the end of the day you still have to pay the balance of the mortgage. It’s like taking out a personal loan to pay off credit cards. You still gotta pay the balance
The opening!!!! 😂
Velocity banking is like the flat earth theory of personal finance
the difference is that the 4% mortgage is actually 90% interest in the first 10 years (look at a mortgage calculator). so using a credit card can help you save on those 90% interest payments, since the credit card payment would be above your regular payment and would be charged 0% interest initially, since its above and beyond your monthly payment. And if takes you 6 months to clear it, then you paid 9%, which is still far lower than 90%. It actually does make some sense, although I don't think most people could handle it.
Real Math Example: 100k at 8.99%. Payment = $980
30 year mortgage.
10 years in - Paid: $117,600. Balance = $88,000
So in the first 10 years you paid $117,000 but only $12,000 went to your principal.
THATS 90% INTEREST in the first 10 years!
Real Math Example #2: Same terms. Just pay $5k extra off per year using a credit card.
10 years in - Paid $172,100. Balance $38,000.
15 years in - Paid $258,150. Balance $0.00.
You paid off your house in 15 years faster and saved $100,000 in interest. The math DOES actually math.
@@AlexPerazaTV except you, like everybody who subscribes to this, are completely ignoring the interest charges on the credit card. I will grant you this - the strategy works if and only if the interest on the credit card is lower than the 8.99% you are assuming on the mortgage. If the credit card is 20% + like many cards, you’d be better off just applying that extra money directly to the mortgage.
😂😂😂 great analogy
Tin hat theory 😂
I love this comment. I have to put it in my Arsenal of trying to combat the buffoons that believe this velocity banking scam.
23 yrs ago We paid extra payments on our 10yr 6.75% mortgage and paid it off in 2yrs and 11 months. We had a poster on our fridge showing the declining balance every month. People thought we were nuts. We only did things that were free for those years, lived off of beans and egg fried rice. Never ate out, bought nothing, no vacations handmade cards for birthdays and holidays. When we burned the mortgage everyone thought we were brilliant all of a sudden. Dave Ramsey is the reason we have financial independence today. We still live well below our income.
Yeah. No matter how much money you have or your income, unless you are on your deathbed, living well below your income is better.
Dave Ramseys advice only helps really high wage earners now. I’ve seen video’s debunking his advice.
@@AtlChica883 care to share one or a couple of these debunking videos?
@@AtlChica883 His advice has helped a group of non-high wage earners. It works. This is real life experience, not theory. Our experience and that of some friends and coworkers who gave it a shot and are now in a much, much better financial situation. People love to try to 'debunk' him, but if people actually follow his advice rather than just critique it, it's effective. Those who teased us for it are still whining about him. We just smile.
You will never see it. Clown is another broke joke. Ignore that fool
These Tictoc people have gotten a lot of people into serious problems. She doesn't know anything about mortgage, but she's coaching people.
Unfortunately, it’s not only on TikTok. I actually found about velocity banking here on UA-cam. I can’t recall the name of the channel off the top of my head, but I’m gonna go back and find one of the videos. I thought I was stupid because no matter how many times the lady explained what she’s doing and how VB works, it just wasn’t adding up for me. This video helped me realize Im not slow 😂
If someone listens to her then they deserve the trouble they get into. When you do stupid things you get stupid results.
Wait! if I’m not mistaken she said her bills were. $ 3000 and her positive cash flow was $5000, altogether her total income was $8000, If that’s the case all she had to do is use $ 4000, of her positive cash to pay of $ 12k within the same time of 4 months without doing all and keeping $1000 to herself in case of emergencies
I was thinking the same thing. Cash flow isn't your paycheck, it's cash leftover after everything else. And with that much cash flow she could've just paid $4k to the principle each month and actually had more money after three months then using a CC!
I’m sorry , I don’t think there is clear definition of cash flow.
The point is to keep liquidity
Yeah let me pay off my 4% mortgage with my 22% credit card 😂
You are incorrect on your rates.
Do you have any idea how interest works on two completely different concepts? For a 200K mortgage balance, a 5% APR on that balance is $10,000. Your credit card limit is likely NOT $200k. There is no possible way to accrue more in interest payments on a credit card balance that is way below your mortgage balance. Considering you MAXED out a credit card balance at 10K and even assuming the balance remained 10k for the entire year without paying a dime on it still ends up at $2,200 (22%) in interest payments. So if you're using your credit card to pay down your principal you come out saving on interest while making bigger payments on the mortgage balance.
What if you lose your job? What if you have an emergency? This is so risky it's giving me anxiety!
She's dropping her mortgage balance so if she has an emergency and that's an if she could always call her mortgage company and they could always recast her mortgage for her and drop her mortgage payment by hundreds of dollars a month, and all it takes is a simple phone call. What's risky is paying interest.
@michaelb.8953 you can also drop your balance by paying more towards your principal every month. Then you don't have thousands of dollars on a credit card that probably has a 18-20% interest rate. I'd rather pay 6% interest then be in the hole thousands on a credit card I can't pay back. Idk if you really understand what risk is...
@@jessicabrittany1682 I don't think you actually read my comment properly, but that's okay. I'm actually not taking one side or the other as all I'm doing is pointing out that if she has an emergency she does have an option that may soften the blow. I actually wouldn't do what this girl is doing myself as it's not really saving her much if any money at all. If you were looking for someone here to jump down their throat about velocity banking I'm glad I was here to give you the perception of puffing up your ego feathers.
@@michaelb.8953it will soften the blow, but she would have to pay the credit card, mortgage (even if it is less than before) and living expenses. If she makes 2000 in extra payments she would have still less mortgage and no credit debt to pay.
As someone who has around 20 years in mortgage lending and credit card customer service I nearly had an aneurysm.
People have zero patience. Nothing great happens overnight. It takes time!
I paid off a modest 10 year mortgage which I'd taken out in June of 2020 on the penultimate day of 2022: 2 years, 6 months and 13 days. Overpay, overpay, OVERPAY. Every spare penny that I had - went on the mortgage. My friends thought I was mad - but I am completely and utterly absolutely and entirely debt free!
I earn LESS than the average income in the UK. I live alone. What did I find to do which was very inexpensive rather than go to the shopping malls and eateries? _ ride a bike most evenings and when not riding a bike I've learnt how to speak Spanish and an now polishing up my very rusty French - this costs me less than £20 a week!!!! I am now saving more than half my wages into an ISA. If I can do this then SO CAN YOU!
i overpay my mortgage but if i pay off more than 10% a year they charge me the interest they would have earned on the overpayment anyway, gunna take roughly 7 years
And what are your friends saying now? lol
@@Trapz4Dayz A lot of them are jealous and a lot of them keep telling me I don't know how lucky I am now that interest rates have gone up. Of course I've been lucky - I've enjoyed the luck my behaviour engendered; I am not being sucked dry by the banking industry. As Dave Ramsey says "I have money" (But mine has pictures of our late Queen on it).
You may have made a mistake if your mortgage rate was below 3 or 4 percent. I also bought my house in 2020 and have a mortgage below 3 percent; I wanted to pay my mortgage off early, but realized it really wouldn't benefit me and I could earn a higher rate of return investing- not to mention the fact that I would lose the interest deduction when I file my taxes.
@@LordGreavous Where do you live that this is a legit lending practice?
I could watch your finance videos all day everyday! Never a boring minute!
shes not making any sense at all. Also, with her math, you essentially pay 21-30% interest a month for 3 months while paying off the CC bill of $15k. Thats WAAAYYY higher than mortgage interest. Whoever told her to do this...I cant even.
Getting out of debt is boring but rewarding. Being a responsible adult in general is boring. Sometimes I miss the not even paycheck to paycheck life cause it was wild and fun… but then I remember how nice it is to not have an existential crisis over every minor surprise expense.
Why pay 3-7% interest on your mortgage when you could pay 25%??
I’ve been in banking for 5+ years, & I’ve never seen a credit card where you can pull from where there wasn’t a fee, & a higher interest charged for pulling “cash” out 😂
I have no idea what she was talking about
@@CaseyPeters-es8eq I mean, you could do it with a LOC in theory, but the perks & math aren’t there. The draw for credit card usage are the perks: points, cash back (which suck people into an endless loop of doom & gloom typically.) For an LOC, there aren’t any perks to benefit from, & yeah you aren’t hit with any draw fees, interest (typically) starts accruing the day you draw funds on it. Traditional LOC’s are also not collateral based, so there’s a higher interest rate you pay anyway.
(I.e. let’s say someone’s mortgage rate: 6%, but their LOC rate is 16%, why pay 10% more?)
I started out in a credit union, & people try to get “creative” with things that just don’t work.
Please note, I don’t ascribe to everything that the Ramsey team gives out, but I’m a HUGE advocate for like 90% of philosophy they have because it works. 😅
@@CaseyPeters-es8eq (sorry for that long response) 🤦🏻♀️ if someone is really wanting to pay off their mortgage faster, what George Kamel is saying is a good idea. What someone could also do is just put any additional money that would go into the mortgage into a regular brokerage account at like Fidelity, Schwab or whatever, put it into like an S&P 500 with low cost, and when there’s enough money there (or more) & you’re ready to pay it off, then go for it. (Just save enough money for any taxes on gains when funds are pulled out.) yeah, you pay the gov. Or whatever, but you’re still WAY up from paying interest on the bank, who’s been the real leech on you for years 😂
She doesn't either!
The only thing she could be referring to is a 0% APR offer where they do allow you to deposit it to your bank. Albeit, there’s usually a 3-4% fee for this.
There is software called "online check writer" where you can use your credit card and it will issue cashable checks. And you wont pay the extra fee. Also you can just Paypal a friend and have access to your money with no extra fee.
Even in the best scenario: you get a 0% interest check offer from your credit card, you’re still getting hit with the upfront 5% fee just to write the check, which is probably a higher rate than your mortgage
some credit cards do not charge a balance transfer fee the person doing the TikTok clearly didn't know this any I think they made the video for clicks.
I got an offer with 0 interest but with 3% fee. If borrow the funds and pay them back within 12 months, it saves more than the mortgage interest I would be paying in the 12 months and about $13K over the life of the mortgage. that being said, it is a risk to take out this money because if i dont pay it back in 12 months, boom 21% interest rate!
@@rayhage3971 Risk aside, is $13k over 30 years worth the hassle? What's that, roughly $40/month?
The problem with borrowing money is that they want you to pay it back.
with interest.
Who would’ve thought huh?
I’m not here to be a negative Nancy, but when she says $5000 cash flow, that just means after her bills, so she makes $8000 a month. She just said it in a stupid confusing way
Nothing negative here. I too think that’s what she’s trying to say! She worded it VERY poorly!
this would make the 3 month pay off of the credit card more sense.
No, if you go to her Instagram, she means $5,000. By positive cashflow, she meant her income and she puts all her bills (monthly payment, utilities, etc) on her card. When someone questioned her in the comments about her not fully paying off her balance in 3 months because she kept adding all her monthly expenses back onto the balance and she really wouldn't pay off her 15k balance in 3 months. She responded that because she was putting all of her 5k a month, her "initial" 15k would be paid even though she would still have a balance of 9k+ (assuming no fees, 0% interest) because, in reality, she was only paying 2k extra per month.
So in 8 months, she could have just paid $40,000 extra towards her mortgage without playing this game. Is she trying to get points or cash back?
@@MsMockingbird06it's not a game. Paying the principal first pushing your further down the amortization schedule, forgoing paying interest. It's simple math if people would just slow down and stop confusing income and cash flow.
George, you're a blessing to my UA-cam feed 😊
Happy to hear that!
@@GeorgeKamelthank you George for bringing me a ton of business to my channel Velocity banking needs to be taught better unfortunately a lot of people are doing bad math on both sides. If you want to have a discussion with someone on the other side I’m available.
It’s been 2 weeks since I stumbled across the Ramsey clan, and I already feel at home since y’all talk about money/debt/finance the EXACT same way I’ve always felt!
However, being a “cash is king” kind of guy, I always felt like a weirdo, since all my family, friends, and even spouse subscribe to the “credit cards/car loans/endless payments are normal” lifestyle and way of thinking.
And as entertaining as it can be listening to Dave’s often overly political, arrogant & demeaning rants, George is my guy (Rachel’s amazing as well!), and I now look forward to his content daily!
I thought he sounded familiar!
Un-subscribed from Ramsey but might subscribe to this guy
Ramsey is not like you described
I was sent this a ton as well 😂 I was dying when I seen this being a financial literacy channel I broke down the numbers as well and was like WTF that does not add up! 😮
I'm happy you addressed these velocity or credit card gimmick that are click bites for some youtubers. Extra payments towards the principle are definitely the way to go.
Been looking forward to a velocity banking mortgage video. Here for the comments now...BTW Chili's used to have a weekly all you can eat fajitas night in the 90s (forget which day of week). Our high school volleyball team got our money's worth way back when. And as a parent, you're spot on about common core.
What the TikToker is describing is NOT Velocity Banking. It's VERY sad to see bad information and misrepresentation of the strategy go viral.
Ohh, you guys are funny. I hope George sees your comment and wants to take you guys on.
Thanks so much for an honest take on velocity banking! Their math ain’t mathing and I understand their scam way more because of your explanation!
George is my fav Ramsey personality other than Dave. So entertaining and knowledgeable
Loved the Alf shout out! Thanks for debunking this hack so plainly.
6:42 idk why I laughed very loudly when you started talking about YOM lolol
I had same reaction!
Yes, let’s trade 3% fixed rate debt with 30% variable rate debt. Very wise!
I thought generally the interest charged on unpaid short term credit card debts were significantly higher than those charged on long term mortgages using your house as collateral.
So you’re almost inevitably just creating a higher interest rate until you can afford to pay the debt off.
So not sure I understand remotely what would ever be achieved by this.
I absolutely love your videos! Keep them coming!
My mom gets these 1 yr 0% APR checks from her credit card. Sure they are a trap for most people.
She basically did a similar thing on a camper.
She's an accountant she calculated out what she was going to put towards extra payments that year.
Wrote it out, cashed the check wiped out $7k off the loan.
Saved $600 in interest.
To me it seems like a lot of B.S. to save a few hundred bucks.
Which card?
@FlyingSagittarius , I have no clue. She told me but I don't remember.
Had a guy who claimed to be a Ramsey FPU instructor and he stopped because he believed in the HELOC banking scheme. He tried to explain it to me and said that it takes discipline. I never tried it. We're on a 15 year at 2.25% I pay extra it should be done in 10 years by 55. But then my wife will want another house.🤦♂️
Good for you. Because velocity banking is a total scam. It's just like a magician using sleight-of-hand.
THANKS! Been Waiting for either you or Dave to do a bit on this "trend." Can u also touch on the "velocity" banking using a heloc as well.
Honestly, this is one of the best videos I've ever seen by George just for the intro😂
FYI, he mades great videos!
So glad you covered this. I clicked on what seemed like a normal finance video where some blonde lady explained how to pay off her mortgage with a HELOC. It made no sense and because I watched it, I kept getting fed velocity banking content. The math never seemed to add up and it seemed extremely shady. Is this an MLM? Are they getting paid by the CC companies? So wild that some people are probably falling for this.
Same here. Her video didn't make a bit of sense.
I don’t believe using a HELOC to pay off your mortgage isnt necessarily a scam. It’s kinda complicated and I don’t know what that person was selling but when I worked for a credit union a few years ago it seemed like a decent idea.
How is taking out a HELOC to pay your mortgage better than just paying your mortgage? Unless it's a much better interest rate...
@@TheJulior1983 It mostly just feels scammy because most of the people I see pushing the velocity banking concept seem like snake oil salesmen. It also add such a degree of complexity to your budgeting that it seems like a very bad thing to try to manage when you consider how bad most people are at budgeting in the first place.
There is a UA-cam velocity banking channel called "VANNtastic". It seems legit, if convoluted. The idea is the HELOC is simple interest, while a mortgage is amortized and very front-loaded with interest. So you put your whole paycheck against the HELOC every month, and pay all of your bills out of it as well.
The trick is, most people who are in a sticky financial situation to begin with don't have the discipline to only spend X amount each month if they're spending it from a HELOC and not their checking account.
So really there are a variety of ways to get back on the right side of the ledger if you're in debt, but any of them require discipline/ change of course from the direction you were headed previously.
Your videos are always informative and fun. Keep them coming!
We paid a 30 yrs MTG off in 13 years, take the monthly mortgage payment and multiple x14, that pays 2 months in pure principle, by the time we had saved enough in our savings account and lowered our MTG, we paid it off. Step 7 is AWESOME!!!!!! Love IT (we could have done it faster if we would have known about Dave Ramsey's Baby Steps earlier in life)
She can’t even do fifth grade math. How would she live if she paid her entire monthly cash flow to pay on her credit card?
She's putting her $3,000 monthly expenses on there as well. So the net progress is $2000 a month. It'll take six months to pay off that $12,000, not three. At credit card interest. You just negated any savings by prepaying by doing this. It's only a viable strategy if you can get an interest rate that is similar to or lower than your existing mortgage. And even then, it's not really worth it IMO. Most people are better off just paying extra on their mortage if that's what they want to do.
It is called, "inner city math".
@@racerx6 hmm...and what leads you to believe she is from the "inner city" I wonder?? Unnecessary.
@CaseyPeters-es8eq l do. You're making an assumption that she's using cash flow correctly. But even if it's $5k a month, I'm here to tell you the daily accrued interest on that decreasing cash advance balance even over three months plus the cash advance transaction fee is going to be more than what you're saving in accrued mortgage interest. Doing this with a HELOC is one thing... doing it with a credit card will not yield savings after huge cash advance rates and fees. I'm expressing my opinion here. If you don't agree that's fine, no need to make it personal.
@@ckotterman It'll take more than that when you factor in fees and interest.
This is an excellent format for George. I don’t enjoy him on the Ramsey show as much but this is really good.
Every velocity banking video I've seen has math errors, or something they left out or forgot about.
Yes, the number one thing they all leave out on velocity. Banking videos is the cost of the money. They only show you the cash flow like. Oh, you're gonna save this much money because you put all your bills on to this
Of credit that cost more than the old line of credit and they're confusing the savings of cash flow with savings on interest.
Moving debt around from one basket to another doesn't pay off debt. Pretending your savings account is a deduction off your mortgage is playing games, not actually paying down debt. You can do the same thing by simply calculating your net worth in a spreadsheet by adding and subtracting.
You are so right about all they're doing is moving money around. I say it's like the old-fashioned gambling game where see the ball under the coconut shell. Now, where did it go?
Love your videos. Always makes me smile.
I’ve been waiting for this video!!! So glad I found it.
I've suddenly been seeing "velocity banking" or the same pattern with different names ALL over the financial video world.
2 years ago we started with a 30 yr mortgage. We are now at 17 yrs left… our plan is 5-6 years *TOPS*.
We chose accelerated weekly mortgage payments, we double each payment *and* we’re saving enough to put down a 10% lump sum on our yearly anniversary date.
So far, so good and we are on track for that 5-6 yr goal! 🙌🏻 We keep a very tight budget, but we have no doubt that it’s going to be worth it in the long run!!
PS - NO credit cards needed. 😉 Just determination & self control!
I'm glad you are talking about this. I've seen this velocity payoff here lately. I don't get it at all.
One lady was also using velocity to pay off credit cards. She was putting all her bills on one card and then saying you keep doing that until it pays off. I was thinking WHAT?!
Make sure you read the contract when you get the mortgage and see if there is a prepayment penalty and see if it is a percentage then do the math and find out what it would be and also look at the amortization schedule and see if the total amount of interest is worth it. Also if your mortgage payment is less than you were paying in rent just pay what you were in rent to pay it off faster. I only paid 5 dollars extra in principle every month for 1 year and that has shaved 1000 of interest off of my mortgage. 60 dollars extra in 1 year will save me 1000. So 1000- 60= 940 in my pocket later
Generally in the US, prepay mortgages in full or in part requires no penalty.
When I used to get loans that was the first thing I would ask is there a penalty if I pay it off sooner
Not to mention if she looses her income it will be very hard to recover
What she said is take the $3000 in bills which most likely doesnt all come out at the same time and put it on her credit card. This way when she makes the $5000 she can apply that directly to her credit card. Ive watched a few velocity banking videos and this is usually how it works. Also usually people use this method to raise their credit score. But yeah most of the points you made are correct
I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?
"Overall, buyers hold a lot of the cards right now, and sellers are having to give out more concessions to close a deal." All the best, buying on sale is actually one of the best ways to invest in stocks, and advisors are ideally suited for such task
Especially because their expertise is centred on short- and long-term holdings for profit realization and because of their distinctive research, it is nearly impossible for them to underperform, I prefer to seek the advise of financial consultants when making my daily investment decisions. My consultant and I have been investing together for a little over two years and we have already produced sizeable net profits..
A consultant's expertise is centred on short- and long-term holdings for profit realization and because of their distinctive research, it is nearly impossible for them to underperform, I prefer to seek the advise of financial consultants when making my daily investment decisions. My consultant and I have been investing together for a little over two years and we have already produced sizeable net profits..
I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?
I'm not sure whether I'm permitted to say this, but I'd suggest searching for “Sonya lee Mitchell” as she gained a lot of attention in 2020. She is both my coach and the manager of my portfolio.
I freaking love you. What a breath of fresh air you are to the Dave Ramsey team!
My bet is what she’s really talking about is to max out your credit cards to pay down your mortgage, and then default on the credit cards and claim bankruptcy.
seems about right, lol
Wouldn't she lose her house in the bankruptcy?🤔
@@CB-ln2eb i think your housing situation is one thing they can’t take away from you in a bankruptcy. (But check with you lawyer first!)
@@Chard-man-G I'm not participating in this, I was just curious, thanks for replying!
Who else watching this video is confused out of their minds. It's so complicated of a method. Just don't have credit cards in the first place. I got rid of my last credit card 2 years ago, and we're almost done paying off my wife's last card. One less bill, one less thing to track = more simple tracking of money and no debt! Thank you for making these videos! Please keep educating!
She used the income from her TikTok to pay off the credit card😂
Right!!! 🤣
You absolutely make serious topic and very educational videos so much fun to watch!!!! Finally something I can feel comfortable sharing with my young 20 something kids to help steer them in the right direction financially!!!!
In addition to educating me, George makes me LOL!!!! 🤣
Great video. Great break down. I surely contemplated this. Gained a new subscriber.
When she said she'd put all five thousand dollars a month towards the credit card, neglecting her normal three thousand expenses, I couldn't help cringing b
Great Video George, love your content!
I don’t understand why you would move your debt from a low interest loan to a credit card, which is just a high interest loan. Like, I genuinely don’t see what this is supposed to accomplish. And I actually use credit cards for some things.
The difference is one is simple interest vs compound interest so in the first fifth part of your morgage life you pay 80% of the interest of the mortgage s life
Simple interest against amortizing debt. Works in theory but you can get in big trouble if you don’t budget strictly.
@@justingorman1733 Ah, I see. I did know that some people use balance transfers with promotional 0% interest to pay off credit card debt, but using it for a mortgage seems absolutely nuts to me.
I am going to Nashville this weekend! My prayers are that I see you on the streets lol!
Great vid!
I cannot understand why someone would think paying off their mortgage with a credit card would be a good idea. If it was a good idea to begin with, why not just buy the house with the credit card?
People in the comments of other VB videos think they are Fing the banks by using VB. Like all they are doing is incurring more costs on themselves and hence more profit for the banks!
George your video’s are hilarious 😂 I truly enjoy watching you!
Please quit confusing people with logic:) Everything you say is true. We just pay as much extra principal as we can each month and as early as we can each month. We should have ours paid off in about a year. I love your videos...and I'm almost 70, so you are reaching a wide demographic.
The amount of effort you put in your videos is so amazing 🎉🎉🎉 I’ll never get used to it!!
I'm a big fan of using credit cards, with discipline. Use them the exact same way you would as if it were a prepaid card, never spend more on them than you have to pay them off, and now you have an instant discount on everything that you purchase (yeah, you aren't going to get rich on cashback rewards, but free money is free money as long as you pay in full, which you will if you are disciplined about it), free purchase protection, and since you are paying off that card in full every month, an amazing credit history when you do apply for a mortgage.
For your 5% cash-back I spend 10% to 20% less and pay less sales tax.
@@igotstoknow2 you can both spend less and get the cash back on the amount that you still end up spending.
I NEED MORE VIDEOS JUST LIKE THIS!!! THIS WAS THE BEST INTRO I HAVE EVER SEEN IN A VIDEO!!!
Yes common core math: yet another “hack” that results in videos such as the one you highlighted here in this well put together video 🔥.
Officially my favorite of your videos (of all-time). You cleared up a lot of questions I had about that so-called strategy. Word to everyone in that cash flow struggle!
I've taken the time to dive deep into the velocity banking strategy and really try to understand what it's all about. Intuitively it makes no sense but after all of my time and research into the strategy I can comfortably say that velocity banking makes no sense.
Seriously though the whole strategy is weird because you constantly pay high interest on large sums of money, you lock up your income (cash flow), and god forbid you have an emergency happen whereas now you have large sums of debt on expensive credit cards that demand a large portion of your income (cash flow) on top of obviously needing to pay bills.
Whatever you do in life do not do velocity banking.
@mattbrown4631 I did the same. When I first saw some of these velocity banking videos, I realized that it had to be a scam (or most likely mathmatically illiterate) so I took a closer look. I noticed in all of their examples, they never take into account any credit card interest or fees, so when they send the monthly payment to the credit card the entire amount is applied to amount owed.
Look at it this way. A mortgage is a 30 YEAR contract and (let's say a LOC [line of credit]) LOC is a 30 day contract. When you make a payment to a mortgage, you pay a portion based on your 30 YEAR contract. When you make a LOC payment, it's based on the 30 day contract.
So like you'd rather pay taxes on a seed (30 days) than the crop (30 years) [metaphor for why ROTH is better than traditional] the interest on a LOC is smaller than the interest on a mortgage.
Making principal payments via the LOC will push you ahead on the amortization schedule faster than making normal payments.
For example, if your mortgage payment is $1000. Your first mortgage payment will be about $925 in interest and $75 towards principal. It will take you about 15 years for your payments to go half to principal/ half to interest.
Just by changing your habits and not your income, you can move quicker down the amortization schedule.
I'm living proof. I paid off my 210K mortgage in 36 months. Back to baby step 7. I implore you to look again at Velocity banking.
@@HurtzillaThis is still not clear to me can you expound on this with numbers? You mention a mortgage payment of $1000 ($925 interest, 75 principal). That I understand, although knowing the interest rate and principal owed would be better. How much are you pulling from a LOC to pay towards the mortage, what is the rate on the LOC, when does the LOC need to repaid? (30 days?) thanks.
@@MaxGrey03 just go on a mini UA-cam binge of Velocity banking. It'll eventually click. The Kwak bros, Vann financial, etc.. there are plenty.
The mind F is, simple interest vs amortized interest. The best way I can simply describe it is:
Simple interest is a monthly term (1/12)
Amortized interest is a 30 yr term (1/360) assuming a 30 year mortgage.
Meaning a 20% APY CC can be > 6% fixed rate 30 year mortgage
Yes 20 is a bigger number than 6. But when you make payments to the 20% APY, you're only paying for 1/12 of the annual (meaning if you held the balance for a full year) interest vs. when you get a mortgage, your interest for 30 YEARS is factored into your first and every payment. All 360 of them!
Remember: cash flow = money remaining after all monetary obligations are fulfilled. Hence this cash continues to "flow" and is not stopped by obligations.
If you have $1000 a month of cash flow. If you were to borrow 12K, you could pay that back with your cash flow in one year without earning any additional income. All velocity banking does is allow you to move 12K (in this example) down the amortization schedule first, then you pay that money back. Meanwhile your monthly payments are more powerful because you're further along the amortization schedule.
Go to bankrate or google "amortization calculator" to see how the first 15 years of a 30 year mortgage, sooooo much of your money goes to interest. It's mind blowing.
Latin root words:
A : meaning not/non. Like Amoral or Asexual
Mort: meaning death. Like Mortician or Mortuary
Put them together:
Amortization
A-mort-ization
Not/non death (dying) loan 🤯
@@MaxGrey03 CC interest happens, but it pales in comparison to the interest of a mortgage. Same goes for fees.
The first payment of a 30 year mortgage is about 87% INTEREST. That can easily be $1500. The interest on a 15K balance 20% APY CC would be $250 a month. That's 1/6 the interest vs a mortgage.
It's no scam, who's benefiting? Follow the money! Like Dave Ramsey says, the banks have bigger houses than us. They made the system for profit. Of course it's going to benefit them. If you can't manage borrowing by all means don't. But if you're one of the minority and can, velocity banking is for you.
FEES!!!! Talk to your bank before doubling payments. My wife and I came across that issue. Payed off 30yr mortgage in 8 1/2 yrs with 4 kids
I went to a online meet up about velocity banking and the guy presenting confused the heck out of me. I stayed away from the concept
Good for you. Cause it's a total scam. It wasn't the money max system by any chance, was it?
@carlchristopher2534 my apologies, I do not not remember. It's been awhile
@@tyrecarmon20 No, apologies necessary. I'm just glad you didn't get sucked into that.
George, you are on point. Don't be foolish with your money.
@georgekamel
I think she may have been trying to say “disposable income” when saying “cash flow” which means her total income would be $8,000 per month -
Which still doesn’t make this “velocity banking” sensible…
Still hogwash
Debunked for sure
I cant believe people are getting advice from social media.
Great job debunking this! Totally agree with your point.
Quick note, your math is a little off though.
It's not 8 months, it's 6 months.
1st month = $5,000 (expenses were on credit)
2nd month = $2,000 ($5k-$3k)
3rd month... etc.
5+2+2+2+2+2= 15.
Meaning that paying extra ($2,000) every month also gets her the promised $12,000 ($2k x 6 months). But then the fees and risk for absolutely no reason makes her strategy less than useless.
George is very intelligent and funny as heck! 🤩
This ‘mortgage hack girl’ is a true nutcase, no way her advice made any real real world sense!!! The astronomical fees associated with credit card cash advances makes this ‘hack’ dead in the water ☠️
I’ve been following a couple of velocity banking channels and I agree with you. The complexity of juggling the debt and income and interest and on and on and on just seems like sprinting uphill!
But this system has its own cult following and I realised it’s better just to move on to a more sensible, simpler life. I paid off my mortgage early, by paying it early. Saved thousands on interest. It was amazing!🙄
I imagine at the end of her video, she had a link to her website where she could teach folks how to do what she did for a small fee, lol.
I personally liked the song at the beginning.
I love the George Kamel show. George is not only smart and highly informative, he is an absolute hoot. Love his humor.😂🤣
Is she being paid by AMEX to say this? That's the only motivation I see for this complicated and ridiculous method of paying off your mortgage.
Preach, George!