Great video, thank you for sharing! Couple of things to mention. 1. You should never draw more than 80% of the available LOC balance (emergency fund is 20%) 2. Velocity banking counts on the movement of money in and out of the LOC. So, pay off the $13,000 debt, let the LOC “rest” a couple of months drawing just the expenses and depositing your income. Then, pay the second $10,000 debt and pay the LOC down again. 3. Then use the LOC to purchase a cash flow investment.
@peaceofmind614111 ай бұрын
This the advice I was looking for
@twistedstitchesembroideryd62710 ай бұрын
I'm trying to figure out exactly what I need to do to get this started. I know my numbers. How much of a LOC do I need? What if I have a zero balance, zero interest CC? Can I use this CC instead of an actual LOC? Thank you
@RichieStarz9 ай бұрын
@twistedstitchesembroideryd627 Yes. you can use the 0% credit card as your LOC tool.
@mommifong6 ай бұрын
Depend. Always leave 1 to 2 months available. Then I would look at my cash flow left. I try to check payments of 10 and then for me because of my cash flow it takes me 5 months to be able to chuck again.
@firstname74706 ай бұрын
@@RichieStarz I say no to using a cc as loc unless you are paying off another cc debt and transferring the balance because advances are generally not included in the promotions. How would you transfer $10k to pay down a student loan debt, car loan, or mortgage? If someone knows how to work around it, please share.
@ncollazo1977Ай бұрын
I recently found your channel. I love the content you are providing. Thank you.
@peaceofmind614111 ай бұрын
Keep in mind in order for this to work you have to make some sacrifices like no eating out, shopping, vacations, etc… Short term sacrifices for long term success
@sfsfuzzy35975 ай бұрын
That’s not true ! It does not ever work! And as work I mean it does not save you money it does not pay off debt faster and it does ad a lot of risk ! When they say to pay off your mortgage with a heloc will save you money they are lying
@anthonyp15111 ай бұрын
Cool Video. I made mine with a slightly different formula for current balance but it works out exactly the same as yours and I added a line under savings called cash flow. Can't wait to put it into action.
@r0sie88811 ай бұрын
Credit card companies can just lower your credit limit at any time. I like the idea of velocity banking but the loss of control is scary.
@TnavresGaming11 ай бұрын
It's time for a contest: "Who Can Design the Best Velocity Google Spreadsheet?"
@sfsfuzzy35975 ай бұрын
Let’s just go straight to the facts ! VB does not save you money and does not pay off debt faster than just paying the same amount on the debt ! Now that we have that fixed ! You need to know that paying off your mortgage with a heloc only cost you more and takes longer and it adds risk ! I can show you two families I had to help recover from this bad advice! One ended up losing his home because of trying to use a heloc
@TnavresGaming5 ай бұрын
I don't know about heloc for mortgage, but vb+snowball+avalanche (hybrid pays off debt faster and saves interest). I've been doing this close to a year now.@@sfsfuzzy3597
@jheli223 ай бұрын
@@sfsfuzzy3597 I'm interested in knowing more.
@shaquetaashmore46974 ай бұрын
Great video and thanks for walking us through it!
@ReynaDPerez11 ай бұрын
This is great stuff. I do get velocity banking very well. So seeing this video made perfect sense to me. 😊 very well explained.
@sfsfuzzy35975 ай бұрын
Of you do get VB then you should know it’s not going to save you money and it’s not going to pay off debt faster than just paying extra on the debt ! VB is a scam it does not work and if you think it does then your math teacher failed
@SL-bo7ui11 ай бұрын
Thank you! Going to use this to start Velocity banking this month. 😊
@alexxasmom18256 ай бұрын
How has this worked out so far?
@WatchCharlesMace11 ай бұрын
Great video and great information. Would it be possible to get a copy of the sheet already set up that I can plug my numbers into?
@francp314717 күн бұрын
The biggest real world challenge happens when your debts are in the $25-45k range and your savings are (say) $800-1000/mo.
@Lambchop598 ай бұрын
Sir this was SUPERB SUPERB THANK YOU SO VERY VERY MUCH IM GRATEFUL OX
@grapeape008 ай бұрын
Someone correct me if I'm wrong, but seems to me this un-realistic scenario shows this does not work. I want this to be the shortcut I've been looking for however, the un-realistic scenario makes this look much better than the reality most of us are living. What average american has a monthly income of $5000 but is putting $2000 a month into savings? And this same person happens to pay only $1000 per month in rent and have only $1000 per month in other expenses. You also have to add the accruing interest into the loan which greatly increases the payoff time. If somehow this were real, the same person could take that $2000 savings per month and just pay down the debt directly in about the same amount of time while likely paying less total interest as well.
@goodcommunicator16879 ай бұрын
HELOC equals risk of foreclosure people.
@twistedstitchesembroideryd6279 ай бұрын
I would not leverage my house/property to pay off any debt, especially unsecured debt. No thank you.
@hyojinjang5930Ай бұрын
Great video!!!
@Ra-vi7euАй бұрын
How is this much different from just using a debt snowball
@anthonyhayes958511 ай бұрын
Excellent spreadsheet. My take-away from this example is creative debt consolidation. But why would anyone trade $23k of debt at 6% interest for the same amount at 15% interest. I'm certain the debt could be paid off in the same amount of time with less interest given away, if the $2k savings was applied to the auto debt with the higher minimum payment for about 5 months until it is vanquished. Then apply the freed $2.6k to the remainder of the student loan debt to pay for another 2-ish months. I want to believe in velocity banking, but it seems that sticking to a budget saves more in the short & long run.
@KoreanAtlantaMentorship11 ай бұрын
You can do both. One reason is liquidity. Some will argue that just use the LOC as backup and then leads to another problem called Segregation of Income. Just from human behavior, have you known people who've thrown all their savings directly into a loan?
@stevelozano952311 ай бұрын
The 23k worth of debt isn't really only 6% be ause it was based on both loans totaling 6% each which is actually 12% for both being paid. Just to clear that up. Also, it suppose to clear up cashflow and how the interested being paid from the loan (which is front loaded) to LOC which is spread out on a daily basis which makes less interest being paid out. In theory.
@anthonyhayes958511 ай бұрын
@@KoreanAtlantaMentorship to answer your question, "No." When I had mediocre debt, I would have, but my wife didn't let me 😁. I see your point that the LOC positions you to put ALL of your un-otherwise-budgeted income on your debt, while still having the LOC to cover emergencies, should they arise. My interest in this topic stems from a friend who is convinced that velocity banking will solve his debt problems. As you mentioned, this system simplifies the debt pay down process, so long as you're not still adding to the total debt.
@anthonyhayes958511 ай бұрын
@@stevelozano9523 6% of $10,000 = $600 6% of $13,000 = $780 $600 + $780 = $1,380 6% of $23,000 = $1,380
@KoreanAtlantaMentorship11 ай бұрын
@@anthonyhayes9585 I personally like this strategy because I can be approximate with my numbers rather than exact.
@Beenio296 ай бұрын
How do you use multiple lines of credit like PLOC and credit card?
@sheila_rabant4 ай бұрын
I'm looking for a spreadsheet for 10 credit cards with cashback reward categories on top of VB totals.
@florence35218 күн бұрын
Can i have the spreadsheet?
@mary_mary77711 ай бұрын
Thank you!
@TheMJT5158 ай бұрын
Why did you initially subtract $2000 for the auto and student loan for the zero month if they total only $1000? (Making the current balance $23000 instead of $24000)
@stoveguy21338 ай бұрын
I have 60k mortgage. No cards. No car loans. Nothing but mortgage. How do I pay it off fastest?
@markf.205011 ай бұрын
Could you explain the process and expenses of paying bills using a LOC or credit card? Are you making repeated transfers back to your checking account? Do you use Plastique? I heard they charge a fee of 2.9%.
@KoreanAtlantaMentorship11 ай бұрын
I'll make a video about this.
@KoreanAtlantaMentorship11 ай бұрын
kzfaq.info/get/bejne/grVhfNyWs9rVdaM.html
@sfsfuzzy35975 ай бұрын
@@KoreanAtlantaMentorship you are a moar and a fraud
@user-hg3vy6ux7r11 ай бұрын
I cannot put my whole paycheck in a line of credit. My income is Social Security and they require a routing number and account number for direct deposit. What can you advise? Thanks!
@KoreanAtlantaMentorship11 ай бұрын
I'll make a video about this.
@showmemorefunthings920811 ай бұрын
One option is to get a line of credit with the same bank or credit union that you use for checking and savings. If this is possible, you can transfer the social security funds received into the line of credit or transfer funds from the line of credit at any time. Most, if not all banks and credit unions will allow you to transfer funds within your accounts and line of credit without charging a transfer fee.
@sheila_rabant4 ай бұрын
Deposit to checking then pay the LOC. Making regular payments is the transfer.
@Roger_Y8 ай бұрын
What is "savings" ?
@sandyhopkins70964 ай бұрын
I don't understand how the 25k became 23K. You said to move the student & auto using the LOC, but that only adds up to $1,000. Please help me understand. Thank you. I
@sonyacole71864 ай бұрын
The 25K is the max amount you can charge on the line of credit. The 23k is the result of paying the balance of the student loan (10k) and the balance of the car (13k) off using the line of credit. This wipes out the debt for the student loan and car and places it on the line of credit. You then send your paycheck to the line of credit each month and start paying that balance down.
@InheritanceRealty5 ай бұрын
Can you send me a copy of the spreadsheet
@mcr73795 ай бұрын
have you heard of the pill method?
@sfsfuzzy35975 ай бұрын
Have you heard of just paying all you can on your debt till your no longer in debt ? I did that and have not had debt for two decades
@athomemom7611 ай бұрын
How do we obtain the spreadsheet used?
@KoreanAtlantaMentorship11 ай бұрын
Feel free to email us by finding the email address on the about page of the youtube channel.
@scottlandry180411 ай бұрын
Where is the about page? What is your email please?
@MetaTaco31711 ай бұрын
Considering he didn't enter any formulas that you can't view or simply recreate with the Sum button, just copy what he entered and go from there.
@twistedstitchesembroideryd6279 ай бұрын
Christy Vann at Vanntastic has a great spreadsheet, I believe Denzel Rodriguez has the same. @@MetaTaco317
@EFNRND8 ай бұрын
Can you pay monthly mortgage out of peloc?
@sfsfuzzy35975 ай бұрын
You would be a total idiot to do so
@michelepreisner205310 ай бұрын
Copy please
@carlchristopher25343 ай бұрын
You did nothing to show whether it cost you more money or save money.
@PanteraRossa4 ай бұрын
All these "velocity" banking gurus give ridiculous "case studies" that make no sense in real life. If someone is in a lot of debt, they almost certainly aren't saving 30-40% of their paycheck. Spending 20% of your income on housing is also beyond fantastic in this economy. If any of us was lucky enough to be living so wonderfully below our means we likely wouldn't have debt issues to begin with.
@tkanolli2 ай бұрын
Hello, I could not find your email address, under about, to request a copy of this spreadsheet. How can i request a copy? Thanks
@sant331116 күн бұрын
I do not see the "about" info. What is your email address?