Yes sir it definitely works....its been one year for me. I paid over 60k in debt. I just got my 1st position Heloc and replaced my mortgage, debt free in 3 years or less. Thanks Denzel
Another great video. I am already exposing others to this strategy and they look at me like I’m crazy. The concept of debt has some deep roots that need to be broken.
Great presentation. I’m literally ready to buy an airplane and my financials look very similar to the one you presented. Minus the PLC. This is great stuff you should have a consulting service that sets your clients up and makes you money at the same time. Knowledge is Power. Forget about all the haters.
Thanks Denzel! This video just cleared up the confusion about the benefit of putting all the income to the line of credit... if one can time when to put income in and pulling expense out, he would save a lot of interest on the line while making a good impression to the creditor. :-)...
In essence, you really accelerated payment of about $41k in debt using the velocity banking in 16 months since just under $21k will still be on the PLOC at that point. It would be great if you show how much out of the expenses that was just going towards debt before implementing your system. Either way it does save interest which puts money back in the pocket of the user of the system.
Emmojo easier said than done. If you have never made more than 10k a month consistently and your American that’s a very tough statement to make. When I increased my income from 2k to 20k+ it was definitely a challenge for sure. I wish you the best and hope you get there
What's your thoughts on a litttle more aggressive approach where you chunk out the 2nd vehicle first, getting rid of the 26103 balance thus saving you more on interest 6% (2nd Vehicle) vs 4%(1st vehicle). Use 20k from PLOC (2.6%) and 6103 from balance transfer (3%). Then you can save from the 2nd vehicle interest (6%vs4%) then when Aug 2020 comes pull the PLOC to payoff credit card. From there work on the 1st vehicle. *I just started watching your videos and I forgot to realize you use a 2/3 approach from what you borrow from debt weapons or so it seems from what I watched so far. In that case you could take out 16667 (2/3 of 25K) from PLOC and 9436 from credit card to pay off 26103 2nd vehicle balance (16667+9436=26103)
I thought the same, but the timeline probably didn't work right. Remember he needed to have the debt free by August so that 0% card could be paid off before it jumps. I guess one thought would be to just pay it off with the available credit that has been achieved at that point, IDK
Denzel..are you still consulting? This is one of the best vidoes I have seen. I recently secured a 100K HELOC for 9.37% (I know terrible interest rate) at the recommendation of my finaincial planner, but don't know what to do with it. This video has given my a great place to start. Thank you!
You misunderstand the concept of interest floating and offsetting your borrowing costs. It is very applicable with credit lines charging on a daily basis. Most credit lines in the US charge on a daily basis. Look at my case study videos where I break down the interest being charged on a monthly basis breaking it down day by day and you’ll see the vast difference
Robbing Peter to pay Paul using low introductory interest rates on credit cards is fine until the credit card companies suddenly stop issuing them. Then you'll be trapped with an 18%+ interest rate on your previous $4.5% car loan. Be very careful about getting over extended using credit cards. It's much better to adjust your lifestyle to free up money to pay off your debts.
I agree with what you say understanding how to leverage is very important. When people over leverage it’s not the interest rate or the credit card that was the problem it was the user.
Hello @Denzel Rodriguez, thank you so much for all your great work. I'm really excited to start working on velocity and eventually infinity banking concepts to acquire wealth. I just finished paying off $46K plus of debt using snow ball method. It took me about 5 years but I also got married and I'm back in debt so I'm curious to see how velocity banking will work. Questions: how dose one acquire a secured PLOC? I have great credit 800 plus. The reason I ask is because I've seen that they have lower interest rates. Thanks again
@@forbesmoney correct the same amount of money you have in expense per month will come out of the PLOC to the checking account to pay bills. Your income before you spend it on bills will be parked in the PLOC to offset your borrowing costs, then your cashflow is 100% principle knocking the debt down that you moved into the PLOC initially
So basically, juggle large transfers of debt from one pool to another every month to save on the interest by taking advantage of the grace period on interest accrual and lower interest rates. Is that a 32minute video summed up in one sentence or did I miss something?
For some people it just clicks. You are correct regarding credit cards. With a PLOC or HELOC you are simply offsetting interest to pay off debt faster using debt to create cashflow vehicles for short term and long term wealth.
Hi denzel how can I work with you? I need your guidance on how I can pay off my 15yr mortgage with 2.75% interest that I just refi last year. So 14yrs left.
Can you break this down into simpler terms? I’ve got $10k sitting in the bank right now, and I need a new car. How can I make the most out of what I’ve got right now?
Not necessarily all the time I would watch more videos because there are many different ways to use the concept. Generally speaking the rule of thumb is you need to make sure when you borrow your cost of borrowing is zero and it beats the debt snowball method. That is a better rule of thumb.
Also, paying your car with your credit card isn’t even allowed with most credit card companies, and if it is, they charge a hefty fee. I’m really confused here
@@Bunny-pr8gw no not a loan but a revolving line of credit that you can withdraw funds without any fees to your checking account and then use however you want. I’m showing in this example how to use a personal line of credit and a credit card to pay off debt fast. If you go to my channel and look at my playlist I have videos that breaks the concept down in chronological order.
Hello can you provide a little more detail to your question. This video is a few years old so if I said extra money somewhere in the video point me to the time stamp and I will look at it.
I’m trying to understand this. My question for this scenario is on the $4k mortgage payment you were making for 16 months while you were paying down the other debt. Wouldn’t the total debt payment within the 16 months time period be less than $64k? I don’t see you factoring in interest & escrow into those 16 payments made. $4k can’t possibly all go into the principal or am I missing something?
My 2nd question is: I only have $116k mortgage @ 3.99% & $42k car loan at 0%. Do I pay off the car loan first or should I tackle my mortgage to save on interest?
@@SavvyCouponSecrets If you have a 0% car loan that would be your last consideration because the money is free. If you have extra each month that you want to send to your mortgage do that. Don't worry about this VB stuff. It is for very specific circumstances. (Doubtful you will get a LOC at a cheaper rate than you have currently). If you dont have any extra that you can send, the smartest move is to make more money if you can and send that.
Its important to weigh out the balance transfer fees. Some I've seen are 4 or 5% with a 9 month 0% interest period. That fee is charged on day 1. It sounds beneficial to eliminate a car payment because it is a higher number that could be converted to cash flow. But what if it a very low interest? Same as credit cards with 0% interest? I'm refinancing my home in a few weeks to cut the int rate from 5.25 to 2.875 (15yr). I'm 15 months in. My concern is that with closing costs, I am adding about 10K back on the the principal. I have a goal to be debt free in 7 yrs.
John Brewer I would look at that move from the banks perspective and what does the bank have to gain. When you look at it from that perspective you’ll know if you are making the right move or not
@@barryredman2803 this resource is directly from a bank that has a spreadsheet that will break the numbers down if you are going to use a First Lien HELOC with them - flhambassador.com/denzel-rodriguez/
I've been doing this type of strategy for more than 25 years and didn't know it had a name. I have a quibble. In the example given the vehicle paid off has the lower interest rate and lower payment that also appears to be further along in amortization, meaning more of the payment is going to principle than interest. For $808 more out of pocket one time, from the pre-strategy positive cashflow, payoff the higher interest rate, higher payment vehicle that appears to be earlier in the amortization. This puts on the LOC the exact same starting amount but further reduces the monthly outgo by $35 or $350 over the first ten months. At the end of the ten months the July figure would be ~$1141 remaining on the LOC which is modestly easier to come up with. The remaining balance on vehicle 1 would be ~$13,000. Then do the second chunk to pay off the credit card and with the increased positive cash flow, six months later the LOC will have been reduced by about $10,400 which would be roughly equal to the payoff on vehicle 1 at that time. LOC is back up to ~$17,000 but cashflow is increased by another $400 to over $2100/month and the vehicles are owned outright. Ten months later the LOC is at $0. Also, Discover Card has an interesting option: 0 up-front fee with a 4.99% rate that lasts for 3 months longer than the 3% up-front 0% rate. The offers I receive are for 17 months or 14 months respectively. This can be useful for someone that wants to schedule equal monthly payments that pay off the card on the final month of the promo rate and/or is expecting some money that would permit them to pay it off early.
Yes sir it definitely works....its been one year for me. I paid over 60k in debt. I just got my 1st position Heloc and replaced my mortgage, debt free in 3 years or less. Thanks Denzel
BEAUTIFUL! Then he can Open a Whole Life Policy and there's no Holding him back!!
HAHA! Thats great! 🙂
Another great video. I am already exposing others to this strategy and they look at me like I’m crazy. The concept of debt has some deep roots that need to be broken.
Great presentation. I’m literally ready to buy an airplane and my financials look very similar to the one you presented. Minus the PLC. This is great stuff you should have a consulting service that sets your clients up and makes you money at the same time. Knowledge is Power. Forget about all the haters.
Denzel you are out of this world . God Bless you.
Just one suggestion on how to show those figures, rather use an excel or just film how those numbers are added up. Easier ref for both u and me.
Thanks Denzel! This video just cleared up the confusion about the benefit of putting all the income to the line of credit... if one can time when to put income in and pulling expense out, he would save a lot of interest on the line while making a good impression to the creditor. :-)...
In essence, you really accelerated payment of about $41k in debt using the velocity banking in 16 months since just under $21k will still be on the PLOC at that point. It would be great if you show how much out of the expenses that was just going towards debt before implementing your system. Either way it does save interest which puts money back in the pocket of the user of the system.
Subscribed. Great job bro
If I made 17,000 a month, I'd have no financial issues. I'd still be in a $200k house and live the same way I already do
Emmojo easier said than done. If you have never made more than 10k a month consistently and your American that’s a very tough statement to make. When I increased my income from 2k to 20k+ it was definitely a challenge for sure. I wish you the best and hope you get there
What's your thoughts on a litttle more aggressive approach where you chunk out the 2nd vehicle first, getting rid of the 26103 balance thus saving you more on interest 6% (2nd Vehicle) vs 4%(1st vehicle). Use 20k from PLOC (2.6%) and 6103 from balance transfer (3%). Then you can save from the 2nd vehicle interest (6%vs4%) then when Aug 2020 comes pull the PLOC to payoff credit card. From there work on the 1st vehicle.
*I just started watching your videos and I forgot to realize you use a 2/3 approach from what you borrow from debt weapons or so it seems from what I watched so far. In that case you could take out 16667 (2/3 of 25K) from PLOC and 9436 from credit card to pay off 26103 2nd vehicle balance (16667+9436=26103)
I agree and to add the $10K Discover debt to the 0% $35K CC.
I thought the same, but the timeline probably didn't work right. Remember he needed to have the debt free by August so that 0% card could be paid off before it jumps. I guess one thought would be to just pay it off with the available credit that has been achieved at that point, IDK
What if I get a HELOC. Do I have make sure it’s simple interest calculated daily?
Denzel..are you still consulting? This is one of the best vidoes I have seen. I recently secured a 100K HELOC for 9.37% (I know terrible interest rate) at the recommendation of my finaincial planner, but don't know what to do with it. This video has given my a great place to start. Thank you!
Thanks.What is a line of credit. Lack of knowledge, people perish. Blessings.
This is only applicable if the interest is charged on monthly basis. Most of the institutions in Canada charge interest on a daily basis.
You misunderstand the concept of interest floating and offsetting your borrowing costs. It is very applicable with credit lines charging on a daily basis. Most credit lines in the US charge on a daily basis. Look at my case study videos where I break down the interest being charged on a monthly basis breaking it down day by day and you’ll see the vast difference
Robbing Peter to pay Paul using low introductory interest rates on credit cards is fine until the credit card companies suddenly stop issuing them. Then you'll be trapped with an 18%+ interest rate on your previous $4.5% car loan. Be very careful about getting over extended using credit cards. It's much better to adjust your lifestyle to free up money to pay off your debts.
I agree with what you say understanding how to leverage is very important. When people over leverage it’s not the interest rate or the credit card that was the problem it was the user.
I say it's not how much you make, its what you do with it
Where the hell does one get a personal line of credit for 25K with 2% interest and with all that debt? Dam son, sign me up.
G P it’s a secured line of credit
@@DenzelNapoleonRodriguez o ok lol, I dam near fell out of my seat lol
G P l just got a ploc last week for 11.49% I have a 725 credit score, so I don’t really understand where he got his numbers from
Imagine the position you'd be in if all your debt were assets, instead of liabilities.
It’s a fantastic position to be in. Helping my clients get to that point is a rewarding experience
Hello @Denzel Rodriguez, thank you so much for all your great work. I'm really excited to start working on velocity and eventually infinity banking concepts to acquire wealth. I just finished paying off $46K plus of debt using snow ball method. It took me about 5 years but I also got married and I'm back in debt so I'm curious to see how velocity banking will work.
Questions: how dose one acquire a secured PLOC? I have great credit 800 plus. The reason I ask is because I've seen that they have lower interest rates. Thanks again
Nyarumbwa Cuffeld watch this on the PLOC ua-cam.com/play/PLnF-b0Fck4LiPKf81FbCgtRQaoYf4bzmT.html
i realy like you content you make me go and ask for a line of credit need to talk to you about how can i reach you
Excellent video!
My question is, if you’re dumping all of your income into the PLOC, with what money are you using to pay the rest of you bills?
The same money comes out of the PLOC to pay bills
So we’re just pulling anything available out of the $25k to pay all expenses and keep dumping all income/cash flow into the PLOC?
@@forbesmoney correct the same amount of money you have in expense per month will come out of the PLOC to the checking account to pay bills. Your income before you spend it on bills will be parked in the PLOC to offset your borrowing costs, then your cashflow is 100% principle knocking the debt down that you moved into the PLOC initially
its fascinating how debt increases with income. 16k/month income with a 1200 dollar cash flow and 700k debt? omg...
So basically, juggle large transfers of debt from one pool to another every month to save on the interest by taking advantage of the grace period on interest accrual and lower interest rates.
Is that a 32minute video summed up in one sentence or did I miss something?
For some people it just clicks. You are correct regarding credit cards. With a PLOC or HELOC you are simply offsetting interest to pay off debt faster using debt to create cashflow vehicles for short term and long term wealth.
Hi denzel how can I work with you? I need your guidance on how I can pay off my 15yr mortgage with 2.75% interest that I just refi last year. So 14yrs left.
Can you break this down into simpler terms? I’ve got $10k sitting in the bank right now, and I need a new car. How can I make the most out of what I’ve got right now?
why do all of these "velocity" guys use a white board and no Excel?
I can make a video just for you if you like and you can provide the numbers of a financial case study or situation
Are things like food, fun money, and the occasional beer calculated into the expense? Or are those kind of expenses part of the cash flow?
Everything is in the expenses. Everything that leaves your checking account is an expense and must be accounted for
So the rule of thumb is, use your ploc to tackle the debt with the greatest amount of interest first
Not necessarily all the time I would watch more videos because there are many different ways to use the concept. Generally speaking the rule of thumb is you need to make sure when you borrow your cost of borrowing is zero and it beats the debt snowball method. That is a better rule of thumb.
I am still confused. How can I have the opportunity to have a private consultation?
Also, paying your car with your credit card isn’t even allowed with most credit card companies, and if it is, they charge a hefty fee. I’m really confused here
It’s a personal line of credit not a credit card
@@DenzelNapoleonRodriguez ok so is that a loan? I’m very new to this concept
@@Bunny-pr8gw no not a loan but a revolving line of credit that you can withdraw funds without any fees to your checking account and then use however you want. I’m showing in this example how to use a personal line of credit and a credit card to pay off debt fast. If you go to my channel and look at my playlist I have videos that breaks the concept down in chronological order.
@@DenzelNapoleonRodriguez thank you! Looks like I’ve got a lot to learn.
@@Bunny-pr8gw There ARE fees associated with opening lines of credit. It is very much like a credit card but usually has much lower interest rates.
Do you actually help to find the line of credit? Or should we already have one before reaching out to you?
Yes I help people find a line of credit and this playlist also breaks it down in detail. - ua-cam.com/play/PLnF-b0Fck4LiPKf81FbCgtRQaoYf4bzmT.html
Extra money? What is EXTRA money?
Hello can you provide a little more detail to your question. This video is a few years old so if I said extra money somewhere in the video point me to the time stamp and I will look at it.
What if you can’t get a PLOC?
You start with the pre game work so you can build towards getting your debt tool.
- ua-cam.com/play/PLnF-b0Fck4Lib7XeYKntMvfKtUwkxSSU-.html
I’m trying to understand this. My question for this scenario is on the $4k mortgage payment you were making for 16 months while you were paying down the other debt. Wouldn’t the total debt payment within the 16 months time period be less than $64k? I don’t see you factoring in interest & escrow into those 16 payments made. $4k can’t possibly all go into the principal or am I missing something?
My 2nd question is: I only have $116k mortgage @ 3.99% & $42k car loan at 0%. Do I pay off the car loan first or should I tackle my mortgage to save on interest?
@@SavvyCouponSecrets If you have a 0% car loan that would be your last consideration because the money is free. If you have extra each month that you want to send to your mortgage do that. Don't worry about this VB stuff. It is for very specific circumstances. (Doubtful you will get a LOC at a cheaper rate than you have currently). If you dont have any extra that you can send, the smartest move is to make more money if you can and send that.
What if you don’t have debt?
The put your money in a high yield whole life Insurance policy thats earning you 4% .
How many people here make $17K a month? most of us here make $6K a month or less. 🤨
Hello have you watched my many other scenarios covering income levels at 6k and below?
@@DenzelNapoleonRodriguez Hi lol I'm watching one now. I'm looking to maybe contact you after I have watched your videos.
@@MegaDee911 this playlist shows all the scenarios I have done so far in detail. ua-cam.com/play/PLnF-b0Fck4Lg0Je7fzPsLpyhVZV3HDmSN.html
Its important to weigh out the balance transfer fees. Some I've seen are 4 or 5% with a 9 month 0% interest period. That fee is charged on day 1.
It sounds beneficial to eliminate a car payment because it is a higher number that could be converted to cash flow. But what if it a very low interest? Same as credit cards with 0% interest? I'm refinancing my home in a few weeks to cut the int rate from 5.25 to 2.875 (15yr). I'm 15 months in. My concern is that with closing costs, I am adding about 10K back on the the principal. I have a goal to be debt free in 7 yrs.
John Brewer I would look at that move from the banks perspective and what does the bank have to gain. When you look at it from that perspective you’ll know if you are making the right move or not
Expenses- does that number included food , gas, clothing, or just set monthly costs?
Expenses include everything
If only there were an eXcel spreadsheet to prove the numbers.
There is some cost money some are free
@@DenzelNapoleonRodriguez Oh? Links?
@@barryredman2803 here is one resource - www.moneymaxaccount.com/denzel
@@barryredman2803 this resource is directly from a bank that has a spreadsheet that will break the numbers down if you are going to use a First Lien HELOC with them
- flhambassador.com/denzel-rodriguez/
@@barryredman2803 I do not have a link for this but I know a guy that created a software called the PILL method. His name is Don Daniel
Amazing !!!!!
That's fucking strong
Interesting...
This person is foolish with his money, he makes that much monthly and can’t budget 😱
Leo Castro everybody learns at their own pace to manage and be good stewards. I can tell you this person is doing so much better now financially
I've been doing this type of strategy for more than 25 years and didn't know it had a name.
I have a quibble. In the example given the vehicle paid off has the lower interest rate and lower payment that also appears to be further along in amortization, meaning more of the payment is going to principle than interest. For $808 more out of pocket one time, from the pre-strategy positive cashflow, payoff the higher interest rate, higher payment vehicle that appears to be earlier in the amortization. This puts on the LOC the exact same starting amount but further reduces the monthly outgo by $35 or $350 over the first ten months. At the end of the ten months the July figure would be ~$1141 remaining on the LOC which is modestly easier to come up with. The remaining balance on vehicle 1 would be ~$13,000. Then do the second chunk to pay off the credit card and with the increased positive cash flow, six months later the LOC will have been reduced by about $10,400 which would be roughly equal to the payoff on vehicle 1 at that time. LOC is back up to ~$17,000 but cashflow is increased by another $400 to over $2100/month and the vehicles are owned outright. Ten months later the LOC is at $0.
Also, Discover Card has an interesting option: 0 up-front fee with a 4.99% rate that lasts for 3 months longer than the 3% up-front 0% rate. The offers I receive are for 17 months or 14 months respectively. This can be useful for someone that wants to schedule equal monthly payments that pay off the card on the final month of the promo rate and/or is expecting some money that would permit them to pay it off early.