How To Pay Off $50,000 Car Loan With $1,000
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- Опубліковано 26 сер 2024
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🚀 Are you ready to turbocharge your financial freedom journey? In this video, we'll uncover How To Pay Off $50,000 Car Loan With $1,000💥
🔥 We've analyzed the top-performing videos on our channel, and we know that our audience loves practical tips and tricks to eliminate loans and maximize their financial potential. This video is perfect for those who are aged 35-54 and are looking to improve their financial situation. 💪
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Rule number one never buy a 50,000 car
Nothing wrong with a $50k car, as long as you can afford it.
@ascencio_77 these cars not worth 50k waste of money
Haha! Where I live, that's a normal second hand cat!
You definitely shouldn’t be buying a $50k car if you’re only qualifying for a 10% interest rate. SMH!!!
What do you recommend? @@ladyd6375
Why don’t these velocity bank teachers ever talk about the interest that has to be paid on the line of credit as well?
@@theplatformstudio5420 because the LOC interest is always lower than any other debt you will have! That is the secret the banks won’t tell you! The only debt with better rates than a Loc is a home loan but with home loan you are only putting money in and don’t have the flexibility to pull from it
@@theplatformstudio5420 probably has to do with the fact one is making such a huge payment that it doesn't make a big ding, just saying
Your paycheck that’s deposited will cut down the interest on the line of credit significantly..
@@Treemonieee if the line of credit interest is 10% and the interest on the loan is only 7%... you are going to be paying approx. $500 in interest for that 10 months plus the normal interest per month... if you just put that 1,000 extra a month on the principle, in 10 months you would not have to pay the interest on the line of credit and you will owe the same amount at the end of the 10 months.
He mentions that.
At $830 per month, you took out a 84 month loan. Just pay the extra $1000 a month on the principal, and you lower your payments to 31 months. No reason to take out more debt.
With VB, its not about taking out more debt, you use it for all your bills. As long as your income is going into your LOC, you always satisfy your min payment. Its a useful tool to have.
@@ericfinn5484 the problem is where are you getting that extra $1000 dollars to make a $1830 monthly payment?? On top of rent and your other bills most avg people can’t make those payments, but with a LOC you can and the interest is way lower than the auto loan.
If you are paying bills out of that LOC then you never replenish the original 10k?
@@jko0526 yes you will you will put your money into the loc each check it will be paid off in 10 months or less depending on how much income you bring in.
@@jko0526 You are replenishing but its small because you are paying less LOC interest per month. When the car is paid off then you put/leave the car payment into the LOC to pay it off sooner.
He's like a preacher. He jumps for emphasis on certain words. My credit union allows me to make principal payments only. I heavily used this in the beginning of my loan.
So if we pay $1830 a month, we can pay off a car loan faster. Got it! Thanks!
Just ran the numbers with excel :
- Scenario 1 = you make regular payments : car paid off 84 months later, paid about 19.5k$ interests
- Scenario 2 = you make regular payments + 1k$/month : car paid off 32 months later, paid about 6.9k$ interests
- Scenario 3 = velocity method as explained : car also paid off 32 months later, paid about 5.9k$ interests on the car loan and 2.9k$ interests on the credit line for a total of 8.8k$ interests
Conclusion : don’t get me wrong, paying down debt faster is great, but this velocity stuff is bullshit. If you wanna pay down your debt faster, make payments with money you have, not with money borrowed (only exception is if this borrowed money interest rate is lower than the initial loan interest rate).
@@OG_Poutine that’s the point ! The LOC is almost always going to be lower than any debt interest rate
@@victorfletcher4188 but not in this example
That's not how rich people stay rich. They always borrow and invest on borrowed money. You're right tho, and some people don't have liquid cash like that or a working spouse or taking care of someone. So its,like another person said, it's about paying the smallest amount of intrest in the fastest way possible. You are right though. 😅
@@victorfletcher4188 disagree on that one, a secured loan (ex buying a car) will almost always have a lower interest rate than an unsecured LOC…
@@jrr7031 I mean it’s definitely a case by case scenario. You’re absolutely right, rich people usually have access to low low low interest loan which allow them to borrow and invest. But for most people, borrowing money to pay down another debt can quickly become a downwards spiral of debt.
I under stand that the LoC is 10K and you're paying 1000/mo, but that is gonna be longer than 10 months with a 21% interest rate. THat math ain't mathing.....
Absolutely. If you can afford to pay $1K p/month to pay down the LOC in 10 months, why not pay that $10k every 10 months saved towards the auto loan without a 21% charge on money you already have in 10 months!!!
Also what happens to the $8300 you're paying between the 10 month $10k payments?? The principle should be much lower. This math definitely isn't mathing.😂
The Loc is almost always lower interest rate than any other debt.
Simple interest vs compound
@@truh_von_tay your comment make ZERO sense. Repaying a 10k line of credit at 1000$ per month for 10 months shows ZERO interest
I'm confused
Ok. I thought it was just me. This math don't math
People try to predict the economy not realizing it is not a capitalistic market, its a command economy, central planning! my concern is, instead of having much dollar in bank that could lose value to inflation, do I save in gold to reserve and grow wealth for now, or just hang on?
truth is that gold serves as an inflation hedge in the long run, but not profitable in the short run. only thing you can predict is a strong effort of wealth transfer from the people to the powerful. luckily some folks find solution in financial advisors
I wholeheartedly concur; I'm 60 years old, just retired, and have about $1,250,000 in non-retirement assets. Compared to the whole value of my portfolio during the last three years, I have no debt and a very little amount of money in retirement accounts. To be completely honest, the information provided by invt-advisors can only be ignored but not neglected. Simply undertake research to choose a trustworthy one.
Impressive can you share more info?
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with "Sonia Duke " for about five years now, and her performance has been consistently impressive. She's quite known in her field, look-her up.
she's active on What's
app
I lost over $70k when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I found one source to recover my money, at least $10k profits weekly. Thanks Natalie Strayer
I'm surprised that you just mentioned Natalie Strayer here also Didn’t know she has been good to so many people too this is wonderful, i'm in my fifth trade with her and it has been super.
The very first time we tried, we invested $2000 and after a week, we received $9500. That really helped us a lot to pay up our bills.
Natalie Strayer has really set the standard for others to follow, we love her here in Canada 🇨🇦 as she has been really helpful and changed lots of life's
I'm new at this, please how can I reach her?
She's always active on Whats~App...
The initial 10,000 that you put down from your line of credit helps you not pay more interest on your regular car loan. That way when you make your regular car payment more goes to the principal and last to the interest, but at the same time you are paying interest on the $10,000 - $1,000 that you leave in the Loc. So you will be paying interest on $9,000 at 21%. I didn't see him do the math for the interest on the Loc loan. Maybe somebody will do the math here.
Where did you get a 21% interest rate on the LOC? My Loc is at 10% interest rate way lower than any car loan or credit card.
Awesome
The creator of the video mentioned 21%@@victorfletcher4188
I did, look for my comment! This velocity stuff doesn’t work because of the interest rate on the loc. I’m his example, you end up paying 1850$ more in interests over the course of 32 months vs just making additional payments of 1k$ on the car.
@@OG_Poutine Exactly. It never makes sense. It just makes people feel like they are cheating the system. Its usually people that are already bad with money who fall for this stuff. If you understand that this doesn't make sense, you most likely won't need it.
Very informative video. Thanks for sharing. Have a great day. 💵 👍
Im working to get my credit score up to 670 and then will make a Heloc against my house. Then will implement to make my truck loan vanish. I cant wait.
Absolutely! Building a strong investment that isn’t controlled by the government is a smart move in todays unpredictable economy. digital assets offer a unique opportunity for financial independence.
Building wealth indeed requires good habits, like investing in solid opportunities such as digital currencies. Having a reliable investment manager and broker is crucial for making informed decisions and managing risks effectively.It's wise to seek out certified professionals who can provide efficient management.With diligence, descipline and the right guidance, success in wealth-building becomes more achievable.
Thank so much for the advice been seeking means of being successful in the digital market,do you recommend any professional broker I’m ready.
Anna Dorris Arthur is the best I’ve encountered so far, so I recommend her.
I'm curious to know more about the expert broker you're considering. Could you share some details about their experience and why you believe they might be a good fit for people’s trading.
So pay 830 on my note and pay 1000 on my loc. Why don't I pay 1830 on my car?
Because spending 10K on the principal drastically reduces time and interest spent on the vehicle.
The extra 1k should go to principal if you specify it
@@CreoleSkipster but the interest on the LOC is higher. These Velocity banking folks never make sense of that, and it doesn't. If you have cash flow, use the cash flow and pay the loan at the cheaper interest, whatever that may be. If the LOC is cheaper, by all means ,move some of it. But it rarely is.
@@leahrabeauxvezinat8871 loc interest rate is never higher. It is usually lowest rates you can get besides a mortgage.
@@leahrabeauxvezinat8871 I thought the same thing and after a lot of digging lol I found out that Basically the whole thing is that the interest on the LOC is calculated daily rather than monthly like the loan. So if you use the LOC the way they say it’s cheaper because you’re basically cutting expense by putting a chunk on the monthly before it gets calculated every month. Having the line of credit is key because of that. Hope this helps.
They don’t understand the power of velocity banking yet 😂
Sounds like you go from paying 830 to 1830 a month
Awesome
With the help of Michael I was able to Pay off within three weeks of my new purchase
@@ghandihill7652 but the $1000 is the banks money not yours
That 10k line of credit is the problem
Right because banks arent handing that out easily
Use credit Unions instead of national Banks. Their interest rates are usually lower. never go above a four year loan.
Thanks!
"It doesnt matter what the interest is" (switches off video)
@@BigBrotherMotown he almost lost me with that too, but he just meant that if you pay a large sum towards the balance the interest on the car loan is not as important because you would be saving way more in interest than you would if you just made the minimum payments. Using the bank money is always smarter as long as it’s leveraged correctly.
Seriously lol
You’re asking people to pay an additional $1000 cash every month on top of their $830 payment.
Your salary is what's making the payment on the HELOC. The K he's talking about is the cash flow after all expenses have been taken out of said salary.
@@darrellenglish2898Amen thank you!
Yes. Super easy
Some banks are front end loading the loans interest
Love your enthusiasm, but I absolutely hate giving all that money to banks. Usury is criminal. I'd rather buy a cash car or take the bus.
12 years ago, I bought a brand new car for around $20K with 3% interest, and I thought that was too much! I paid it off early and told myself, NEVER AGAIN!
I really wanted to learn something here-- My head started hurting I thought you was never going to get to the point
Michael's knowledge and support were invaluable throughout the process. He provided personalized advice, helping me understand the credit reporting system and implementing effective strategies to enhance my creditworthiness.
3.99% interest rate on 40k$ 60 months. Having an 800 credit score and using a credit union is based.
There are risks involved with this. Mention them too!
thank you for breaking it down
I am confused. I’d like to get a little help. I have a $10,000 line of credit and I would like to use this method what I am confused about is don’t you have to pay interest on that $10,000 line of credit each month that that money is not in the bank, am I missing something?
When I bought my vehicle, I put about 8k down and they gave me 0% interest. I guess if u have 0% then none of this matters!! I still overpaid monthly but with 0% interest, i never had to calculate anything. Get the price with no down payment first, and the interest rate, then bargain for what u can get the more u can put on the down payment. If your credit is decent (mine wasn't even quite 700 back then), u might do well. 👍🏾
You are forgetting the final 10k that got rid of the car loan that resides in your heloc. 10 more months and you are done. Technically 50 months total not 40. The true problem is a vehicle costing $50,000.
this was smart thank you 👌🏾
Or you can just pay $1830/month and pay it off in 2 years and 8 months…
All the extra words is confusing to the average person.
@@hunnit.brickz who has an extra $1000 laying around when I could just pull it from my LOC without breaking a sweat.
I once used a credit card to apply a down-payment of 10k on a new vehicle. Even though I repayed that 10k in 2 months my fico took a 95 point hit that took 3 years to recover. Not good.
That does not make sense at all
@@anthonygarland933 velocity banking you don’t use credit cards, but use a LoC like a heloc.
Do you put money towards the princple on the HELOC?
You pay $987 in interest every 10 months. You can just pocket the 1k every month and pay 10k towards principal. Or better yet put your 1k of extra money in high yield savings and make money.
Deploy those soldiers 😂 CJ you are the man.
How do I get started?
Honda civic for 20,000 game over😅😅😅😅
In my area they all drive bmws
Can anyone share what institutions offer a personal line of credit?
Check you local credit unions.
This is some great information!
Don’t waste your time with this video. Instead of doing all this just pay extra 1000 towards the loan, it’ll pay off the loan faster then this ‘velocity banking’
Where are you getting a personal line of credit from?
What is the interest rate of the LOC? Isn't that an integral part of this calculation?
I don't understand. Am I paying the $830 a month to the bank on top of each infusion of $10,000? Or does the 830.00 a month go to pay for the line of credit?
We don't understand the power of Velocity banking because you are really not explaining anything in this video. You are just talking around things.
Great video!
Would someone calculate what paying $830+$400 ($1230) per month toward the auto loan look like? Looks like this scenario assumes an extra $400 on hand per month. Also what’s a “Cashflow Indicator”?
How do I get 10,000 line of credit ?
Either great credit score, or HELOC... which you also need good credit to get.
Keep posting
presentation needs an overhaul. can be much much better. step it up as many people need the info and method. if so many are confused, it's clear that the delivery is lacking. looking forward to the improvements..
It is also sometimes what knowledge and mindfulness that viewers bring to the table.
You get my "Like" just for the shirt!
Yeah
stop using debt to get things you can't afford because you keep acting like a spoiled brat, saying "I want it NOW!!!!!
buy the car you can afford with cash and avoid all these gymnastics! then invest the money in a real investment that will pay YOU the rest of your life!
How do you pay line of credit?
Debt to pay off debt…just buy within your means.. no way I’ll take out a 2nd mortgage to pay off a car loan..
@@jeezze07 that second mortgage is not a mortgage, because you have the power to pull from it and pay your bills off way faster than you would with your own money. It’s smarter to use the banks money.
You use the banks money, its a lower interest rate and cuts your interest on credit cards and car loan.
I have some money in the bank and my home has appreciated significantly so I am borrowing my own money from the bank. This way, my money in my savings is always there.
This is a method people use to pay off there mortgage early. It works really well for paying off credit card debt.
When you have a 10k credit card maxed out and a $400 payment it will take years to pay off and the interest will be almost as much as you are paying off. You use your line of credit to take that away freeing up that 400$ a month 6% is better than 21 pr 30%! This line of credit is used line a checking account, all your bills are paid from it. This reduces interest, pays all your bills and you satisfy the loan.
Just Subscribed
Which bank or institutions are you using for velocity banking?
U use your heloc loan or ploc as your bank.
Thank you
Try to use a green board rather than a white board; due to the white balance need of a video camera.
LoL...i don't need to pay off a car i just want to save that type of money. I haven't seen the video I just know your going to help someone pay a bill so I'm sure i can use some or all to help me save😊. Technically I would be moving it to make more money but thanks 😊
if you can't get a line of credit bc of bad credit... then how do you make this work.....this seem to only work off line of credit....Make a video showing how this works without LOC....I file bankruptcy in 2018 close 2019....I don't have much debt but I just got née car wanted to see how can payoff faster using velocity banking method.
You pay a little more in interest by paying the extra $1000 per month he had over paying the 10k when available. The key is extra money and discipline.
Easy pay through a credit card if you have one.
@DrFinancialLiteracy I have look at my pay n budget I get stress looking at all numbers.
I try to break it all down..by using this method.
My car can't be put on a credit card..
@@TheContractFlipper ok.ifvyou want someone just to talk through it, please call or email anytime.
@@coreyjones3898 Yes but what kind of interest is being paid on the loc? He's making it sound like he's borrowing the $10,000 and paying back each month without any interest being charged.
All you did was pay off the interest & principle b4 time but u just paid extra payments😊
Yeah I dont get it. In the example you continue to pay $830 to the car payment. You also have to pay $1,000 a month to the line of credit (that is at a higher interest rate) So you have more cash going out each month with interest on both sides. How could this possible save $? Now, if the line of credit was at a lesser interest rate. I'm sure there would be some savings.... Can anyone clarify this???
Makes no sense
You ain't missing anything. His Math ain't Mathin'.
Amen! You must watch the videos again it is a great tool!
@@william_leonardAmen
@@dennisdmenace6249Amen
Velocity banking 🥂🍾🔥🔥
60 months is five years not 7 just saying
Quick question, I have a. Car loan and was told I can't use a credit to pay another credit.... i.e. can't use a credit card to pay a car loan.... pls can u help clear this?
I use convenience checks from my credit cards and just deposit my check onto the credit card easy as pie.
A line of credit is not a credit card. Is liquid money you pull out from an account. They will charge you interest on the daily balance.
@@gina77duc44On the daily balance or average monthly?
So whats happening with the 27.99% interest being paid on the $10,000 CC balance?
Basically you never pay much of it because it’s calculated daily rather than monthly and you’re putting your whole income on the LOC and continuing to rotate for expenses.
@@kylew9387 well I do get that part... I use this method. I only pay for expenses with my CC unless otherwise not permitted by an institution. I then pay my full balance every month. I have $235,250 in credit lines with a $316k/yr income. Even with those figures I would not be able to feel comfortable, I could swing it no issue If I had to, putting $10k on my credit card from my car loan. But if you're recommending someone who makes $50k/yr to do this, it's going to take them 6-7 months to pay that balance off, putting 100% of their income toward that $10k credit credit card. Their going to pay 27.99% interest on their cc only, not afford their car payment now and not have money for daily expenses. I'm intrigued... Please explain
I’m trying to understand, so you take out a HELOC and then pay 10k towards your loan and continue to make your car payments, & you pay $1,000 a month to your HELOC too? That’s still a lot because you’re paying car note and 1k back a month. Am I understanding this correctly or am I missing something here? It sounds very interesting, I subscribed to your channel. I’m sure there is valuable information I can learn from you. Thank you for sharing.
Ok so basically what he is saying is that you need to have at least a $1000 surplus every month after your bills are paid. For example if you get paid 6000 a month, you "pay" $6000 a month into the heloc, leave at least $1000 from the original $6000 (monthly). The $830 a month should already have been budgeted to be subtracted from the money that you put into the heloc monthly after leaving the $1000 to repay the heloc ($5000). After 10 months of leaving the extra $1000 in the heloc you can redeploy the 10k into the auto loan. Rinse and repeat. He is making it a lil more confusing than it has to be lol.
This sounds like a game equity loan not a heloc
This doesn't make any sense so you're not missing anything. This video is foolishness.
@@monteb9249notice how he doesn't mention the interest on the HELOC.
Yes awesome!
Can this be applied to my mortgage loan as well?
Hi CJ, James M, reaching out to you.Thanks for our chat earlier today. I will wait for your email to move forward. Thank you!
Did the bank give you the money or the finance company.
He is referring to a HELOC: home equity line of credit. It's based on the amount of equity in your home. Let's say you have $50k of equity in your home, you can borrow against that from your bank or credit union.
What if you wasn't told about a line of credit
This is dumb. Put your money in an interest bearing account, that's how you negate the interest you're paying on the loan. If you buy a $20K car at 1.9% to 5% interest, and have 20K in the bank earning 5% interest... there's your cancellation.
My bank wouldn’t give me a ploc they kept pushing a personal loan so I left
Yeah
Not watching this video, just wanted to comment. Easier way to pay off a $50,000 car loan. Live within your means, dont buy a $50,000 car. If your not making a million dollars a year, you cant afford it. Get your priorities straight!
Im new to VB, waiting to sign for my HELOC. So, when you put 10k down on the loan, what happens to your monthly payments? My car loans still want there monthly payment when I pay extra.
Do not do any of this, If you have cash flow, use that. If you have a low interest loan available to consolidate debt, great! do that. Velocity banking is crap.
I agree with that comment. I want to learn how to kill my $14,657.80 car loan 💯
I understand it, I just still don't like it 😂
Awesome
What if you car loan's interest rate is lower than your line of credit and 10%? : O
You have to be able to pay 1800 a month.
Pastor finance 💥💥
I got a 50k loan with 20% 😭
Is there a part 1 to this? Because I'm confused where is the 10,000 coming from are you investing the $1,000 into something that's going to get you into 10,000 cuz I was so confused by the title
@@allison9008 10k from a Line of credit you have to apply for.
Wait where do i get 10k?
Velocity to Chapter 7 😂😂
0 to 50? if you can't tell that equation won't be 0 then you probably shouldn't be doing the math.
Let's go 💯💯😄
Bro, WUT???? If someone had $10k to lay down on a car two times they need to get their credit in better shape so the interest payment on their car isn’t 10%. And they should’ve just put a down payment down. Or invest the $10k and use the passive income to pay the car payment. This is the dumbest math I’ve ever seen 😂
This is the Dumbest advice ever! Cause your still paying interest on Both sides🤦🏽♂️ instead of paying the line of credit you could use that money to pay on top of your 830$ per month.
But again can you explain the LOC... it's has a higher interest rate... I'm not understanding.
@@mychann33
The "higher" interest rate is simple interest. The loan's interest is amortized, which means that part of the payment goes to interest AND principal, whereas with the Personal Line of Credit, your interest payment is way less!
Just look at the chart in the upper right hand corner!! The 3rd column is the amount of the $830 that's going to interest at the beginning of that car loan, and it's WAY MORE than what's going to principal!!
My sister got a new vehicle last month. She's paying over $900, and over $500 of that is going to interest!! It's insane!!
If you don't understand, look up Christy Vann in her channel so she can explain it to you. I find that she makes it easier to understand!! Her channel is called "Vanntastic!"
@mychann33 No, you ARE understanding. This guy isn't even acknowledging the interest you have to pay on the HELOC. It's not sensible, period. Just put that "extra" grand per month DIRECTLY into your car payment. Say NO to taking a loan to pay a loan!
Not really very simple
@@dennisdmenace6249
Learn the difference between a "loan," which is close-ended, meaning, you pay in and can't take out, and it's on an "amortized schedule," and a "line of credit," which is open-ended, meaning, you pay in and CAN take out, and is a "revolving" line of credit. That's a HUGE difference!! Google it!!
All that money to a car your broke 4 ever
Why are cars over 20,000 today at these prices I'm never buying anything in the U.S. again. I don't care how much money I have I am not spending that much on a car. That is wild to me. I am starting to realize more and more capitalism makes absolutely no sense to me.
Velocity banking is bs
😂😂😂 Why do you say that? I'm new and learning...
Not really. It has helped me pay $10,000-$20,000 in debts over 6 months
I have paid $20,000 using this BS!
I need a one on one class
Amen
Facts
Is this real
No. Its hot harbage
Do u do Credit repair?
I sure do. Let me know if you need help
@@velocityc
Yes.... Could you please send more info, currently in Bankruptcy.. I hit rock bottom, I've been watching the channel since The Joseph days.... R.I.P Joe...
My payment came out to 51😢
This would be considered the P.E. class of UA-cam University!! lol wasted my time I ain't doing that! let alone pay 50k for a car no value in the end !
Why do you have a $50,000 loan? Obviously, you have no money.
Huh?
He wants you to take a loan with 21% interest in order to pay on a loan with 10% interest. Make it Make sense. He is not the brightest candle on the cake. RUn from this channel. Coming from a person with a 830 credit score..
He’s very bright. You will pay more over the life of the loan with the 10% interest. The interest on the line of credit will be less because you are depositing your paycheck into the line of credit cutting down the daily interest..