Pay Off Car Loan FASTER

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11 ай бұрын

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Пікірлер: 738

@dc100dc100 7 ай бұрын

There is no magic here, what she’s doing is throwing any extra money at the end of the month against the loan. You can do this without all these complications.

@user-rm8rc1xi8g Ай бұрын

Thank you. You should start a YT channel to show people people simpler way to save. This lady loses me so fast with her complicated methods. I will stop watching her for sure unless she simply her teaching.

@fishgurusince1985 21 күн бұрын

No PLOC is personal line of credit. Your monthly direct deposit is your monthly payment.

@kam3410 7 ай бұрын

One thing I do love about your videos is actually stepping people through the process, too many people just say the words and you lose the critical steps.

@LookOutside... 7 ай бұрын

But it’s an incredibly stupid process that costs stupid people money if they follow it. I think that’s a bad thing.

@joshuabenoit3744 10 ай бұрын

Have you seen new car prices today? They are doing loans for 8 years now because of these ridiculous high prices. I always pay extra on principal to get a loan paid off early and have never paid a loan to the end of term. Another good tip is to keep paying a car note into a savings account after you pay off your car that way you can buy the next one cash.

@DivineSoul999 5 ай бұрын

🔥🔥🔥 Good information!!

@diswazzi1683 4 ай бұрын

That's a great tip

@PuddlesLovesBooks 3 ай бұрын

Always buy semi-used . The depreciation on brand new cars is fast.

@squadabingo9113 2 ай бұрын

True. Good advice

@HK-Guy 6 ай бұрын

Take the 1333 “cash flow” and add to the back end of the car loan every month. This drops the total interest on the loan. Then use the credit card for the unforeseen expense. And don’t go on “vacation” until car is paid. 1333 X 9 = 13,330 , done in 8.5 months.

@sharongraves5965 11 ай бұрын

I just discovered you and the knowledge you are sharing is AMAZING 👏🏾, I just paid off my car loan today, using your method. Were have you been all my life. The information you are sharing is such a blessing 🙌🏾. Thank you 😊

@VanntasticFinances 10 ай бұрын

@sharingraves5965 It is beautiful. Isn’t it?? Thank you for watching!

@AverageHuman7026 10 ай бұрын

@@coreyfranco7060 how do you figure? Did you watch the whole thing and pay attention? Maybe try watching it a couple times and it’ll click.

@AM0ERIC0AN 2 ай бұрын

How did you pay off your debt today, using her method, when you just discovered her today? Makes no sense.

@michaelwatkins8406 10 ай бұрын

Good video, and its nice to be presented with options that perhaps I haven't considered before.

@TristenHernandez 11 ай бұрын

I’m blown away her expenses Are only 1572. Let’s get a video on how she did that!

@JumpOffHisNutts 11 ай бұрын

She living in her moms basement

@NINJA_INVESTORS 7 ай бұрын

They live in Texas

@texasfan8892 6 ай бұрын

@@NINJA_INVESTORSso do I and I’d love to know where it’s that cheap.

@smorgasbordtv4092 2 ай бұрын

no rent or mortgage

@flawlessfoose Ай бұрын

Definitely not in new York

@richeats 10 ай бұрын

This works, BUT only if you are extremely disciplined. Most Americans I know cannot and should not do this. It will get you into trouble. Just pay extra on your monthly loan when you can.

@kevinx9225 10 ай бұрын

Just to add on to what you are saying. The mentality should not only be to pay your debt down but to strateguis to pay it off. Say you have two cards. A $1200 balance and $5000. Pay the minimum on the $5000 but pay the $1200 off in 3-4 months. Then, take that same money and apply it all to the $5000. Decide within a year and a half, I will pay this off. Also, as your credit score goes up, hit the card company up for a better rate or higher limit. You won't use it but it will be there for emergencies.

@rovers141 10 ай бұрын

Either way it takes discipline, I'm not really sure why you think one way takes more discipline than the other.

@richeats 10 ай бұрын

@@rovers141 That's not what I'm saying at all. I'm saying one way is riskier and more likely to get you into more trouble if you're not disciplined. Both approaches require financial discipline.

@wmason1961 7 ай бұрын

How will it get you in trouble?

@ke_instrayer 11 ай бұрын

Excellent! this is working for my situation, thank you Christy!

@janaenelson7786 11 ай бұрын

Love it I almost understand it I’m a watch it again and I’ll be 100%. Thank you for the information.

@ehderguyyashootadeerorno2313 9 ай бұрын

One thing to consider too is only one vehicle payment per couple at a time. What we do is first buy my wife a new car, trade in the old one paid off title in hand, plus a check, finance it for 72 months but make double payments to pay it off quickly. After 2-4 years once it is paid off (or a few years later) then look for a new truck for me and do the same thing. This way if we lose a job we can drop the payment down to like $300 pr $400, and we always have a newer reliable vehicle at any given time.

@KevinPurdie 7 ай бұрын

but why do you trade in the paid off vehicle? is it to lower the price of the new vehicle, or something else?

@ehderguyyashootadeerorno2313 7 ай бұрын

@@KevinPurdie not sure about every state but in WI you only pay taxes on the difference in the new vehicle price vs the trade in. Example you trade in a $20k car for $40k car you only pay state taxes on $20k. You may be able to get slightly more on private sale but then you have to deal with all the tire kickers with no money.

@KevinPurdie 7 ай бұрын

@@ehderguyyashootadeerorno2313 i’ve never traded in a vehicle, i find it easier to keep insurance and registration on them, my wife thinks its waisting money but i remind her what is she going to drive if something happens to her current vehicle. it also helps when the older kids fly in, theres a spare vehicle for them to drive around. I also have my very first truck sitting at my moms house that i have to remind her or my brother to crank up at least every month so that when i visit i don’t have a dead battery.

@tamashucsko5827 10 ай бұрын

I truly loves your videos. Can you make an informational one on student loan. I need help and I believe you have the knowledge the help many people like me! Thank you in advance moss Vanntastic!

@jonjr9 10 ай бұрын

I live like my late parents. If you cannot pay for what you like in cash then you don’t need it! I have no credit cards, no loans etc. I pay for everything in cash!

@tanialambert8465 10 ай бұрын

That would be ideal if you didn’t nd credit to buy things in life but I do try to implement this concept as much as I can in my life

@tobydobo4080 9 ай бұрын

Only thing with cash once you spend it it's gone. Using credit in this manner you still have access to the cash you put toward it which also serves to dwindle the debt away over a short time.

@namaste348 3 ай бұрын

You paid for you house in cash? When?

@napiermail3592 Ай бұрын

I didnt have parents to pass generational wealth down so credit is needed to manipulate my way to secess

@edwizard62 11 ай бұрын

Love your videos. I'm official a Vanntastic groupie haha.

@cwglindn 11 ай бұрын

Personally, I paid off my loans with the extra cashflow. Getting a PLOC requires discipline and accountability, which most people struggle financially with, and could lead to greater damage. This method works, but the danger of everything becoming an emergency solved by credit it what is trapping most people. Use your cashflow to pay off and then start saving your cashflow to pay things off (with a reward card if you want to play games). Delayed gratification will save you.

@billl2431 10 ай бұрын

@@coreyfranco7060 The method does work. but you can't go on a spending spree. the interest is a small part of it

@SuperQueenV. 8 ай бұрын

True but you could also save that extra cash flow, if all debts are paid, towards a savings account, a CD, IRA etc. and still have a cushion so to speak. But yes discipline is key 👍

@nmsauditor1a950 8 ай бұрын

Agreed, the problem comes when you have an emergency and need the cash. That cash flow can never be pulled out of the car loan but can be pulled from the LOC. We created a budget and started using this strategy in 2017. Six years later, we have no debt and bought two rental homes that produce another $1000 monthly income after the note, insurance,.maintenance and taxes. Let's see you do that while simply paying your cash flow to the car loan. We now have a $65k HELOC, a $40k business LOC and well over $100k in available CC if needed. If the housing market goes south, I will be able to quickly snatch up another couple of rentals with an easy 20% down payment from one of my LOC's. I used the strategy to get out of debt and now am using it to produce new streams of income. Get serious, create a budget and be disciplined to that budget.

@nmsauditor1a950 8 ай бұрын

As a caveat to my statement above, before starting the strategy, we had cash flow but we went through it each month like water and lived paycheck to paycheck. After getting serious with our budget and using this strategy to accelerate our debt pay off, we never looked back. Set a budget and live by it!

@stonefox9124 7 ай бұрын

Typical woman. "I have the answer! Just put it all on credit!" (Interest 25-30%) "why am I in debt!" So dumb...

@stevesworld620 6 ай бұрын

I remember when I saw David Copperfield in Vegas. He cut a woman in half... That was about as real as your arithmetic. Just pay off the loan... paying the 286/ month and the additional 1,333/ month he'll have it paid off in 7 months and no stress or temptation from an additional loan or credit cards.

@wmason1961 7 ай бұрын

I have done my budget exactly this way for many years. It works.

@needhamization 11 ай бұрын

My mind is blown. I have so much to do. I’m SO glad I found you!

@VanntasticFinances 11 ай бұрын

I’m so excited for you!

@mattpleasant8658 10 ай бұрын

You need to find someone else. This advice is bad and mathematically incorrect.

@vinny5727 4 ай бұрын

@@mattpleasant8658 how so?

@grapeape00 7 ай бұрын

Correct me if I’m wrong but If she just pays her car payment of $286 and adds her $1333 of extra cash flow as an additional principal payment, the car will be paid off in the same 7.64 months she’s pay less in interest. Don’t have to mess around with the PLOC and credit card.

@blackprince7510 7 ай бұрын

The credit card part is ok if there is no annual fee for the cash back feature and you pay off your balance owed every month. But it does not amount to all that much money back. If you spent $300 per month on groceries and put that on your cash back credit card, at the end of the year you would get around $54 back.

@maureenrau6341 17 күн бұрын

Using a line of credit gives you flexibility. If an unexpected expense comes up, you can use the PLOC. You can't use your paid off car loan to fund an emergency.

@jaymastertee 11 ай бұрын

What happens if the line of credit is lower then your car loan? How would that look with this system? You’d still have to pay the monthly car payments from your main account taking away from what you could put on the line of credit each month to get that down.

@xillcy5980 4 ай бұрын

Then you'd put all of the line of credit money into the principal of the car... Pay the credit off & the car loan... You still save a TON this way

@qwertypower100 10 ай бұрын

I love you -- thank you for this channel!

@benitaeason1106 11 ай бұрын

Excellent job again.

@RedzBizy 10 ай бұрын

I've been banking like this for years, it works like magic!

@kevinx9225 11 ай бұрын

I'm just a guy who worked himself out of debt. I don't see how getting more debt gets you out of debt. God bless if it works. I say suck it up for a year and plan for a year out. See how much you can do. It's harder when you have a family or other mouths to feed. I went from a low credit score to 850 by doing it the old fashion way. Success builds on success.

@GAMER11201 11 күн бұрын

Amazing demonstration. Your videos are so helpful, thank you from Canada❤

@rn6542 7 ай бұрын

Another great video. Do all personal line of credits have a Variable rate (APR may vary)? Also - is this better than having a car loan fixed rate?

@1badEK 10 ай бұрын

If you can afford it, just make an additional bi-weekly payment that’ll help drop the principal amount of the car loan.

@michelesimone6752 2 ай бұрын

Or dont, make an additional payment. Just make your payments every 2 weeks.

@eze3572 11 ай бұрын

Best explanation yet!!

@bowtiessnation481 11 ай бұрын

Great info, how can you be contacted in reference to first lien mortgages?

@chessyoshi8626 7 ай бұрын

So what you’re saying is that you can speed up your debt repayment if you have a $1300 budget surplus every month. This is amazing new financial wisdom!

@michelesimone6752 2 ай бұрын

Yes, but you're only having a surplus because you're utilizing a personal line of credit..

@noahheinrich6382 11 ай бұрын

#VANNtastic would you recommend chunking dow on the mortgage first or paying off the car loans first to free up cash flow?

@jamesnm21 10 ай бұрын

Get the cars paid off so you can start chunking regularly on the big one. Btw, what's more important, time or money? Time. You only have so much time to get your finances to the place you want them to be and reach your goals before you're dead! Always put time ahead of money and the money will take care of itself!

@chrisrudy1969 7 ай бұрын

Very nicely explained! Thank you. I was wondering if you might want to discuss using margin in a brokerage account vs. using a line of credit. Thoughts?

@robertmccully2792 7 ай бұрын

a margin means you buy at a margin of the cost, but promise to pay the rest. She is saying get rid of high interest rates buy borrowing more at lower rate,, than pay it down fast with the savings of the lower interest rate. You still have to pay.

@berryae74 10 ай бұрын

I like the idea of this method but after you switched her food expenses etc.. to the credit card that created another expense that didn't get added to your monthly expenses of 1286. So that should be 1286+credit card payment to equal a new monthly expenses total which would increase your balance and take extra time ro pay off and then that credit card has a high interest rate too. You would also have to be extremely diligent to pay off this debt.

@nameless5r 7 ай бұрын

Think about it one more time, see if you realize why you're wrong.

@blackprince7510 7 ай бұрын

If you pay off the balance owing on your credit card each month, you pay no interest. The cost of the groceries and other expenses put on the credit card is part of the $1572 in monthly expenses shown. So there would be no debt incurring interest on the credit card. So you are not creating an additional expense unless there is a fee for the cash-back credit card. The cash back earned would, I hope, more than cover the fee for the card.

@mistyyoung1558 11 ай бұрын

Just applied for a heloc. Can't wait for Christy to work her magic for us 🙏🤞😜

@Nathan-uo9yf 10 ай бұрын

please dont...do the simple math, if she puts her extra money("Cashflow") on top of her regular car payment, her car would pay off in the same exact amount of time. shes doing a bunch of charades and saving 12$ in interest over 8 months...but pretending its a magic solution to get out of debt. there are no magic tricks, look into dave ramsey if you want the best way out of debt, it takes hard work and lifestyle change, but its worth it.

@jamesd7154 10 ай бұрын

@Nathan-uo9yf her method does work, but I advise people to truly understand cashflow and have discpline before starting VB. Its imperative to account for all major expenses as well. VB allows someone to maintain cashflow and if done right. Not only can you pay off debt in record time, but also generate wealth to buy assets much quicker than saving. Some of the riches people on earth leveraged "good debt" to build wealth.

@mikimiki195 11 ай бұрын

Here’s simple explanation for paying off any loan early No whiteboard need it Each month you make regular payment if you have any money left after inflation takes 75% of your income than apply to the principal of the loan 👍🏻

@Karina-xv4nm Ай бұрын

I like simple words I don't understand what she is saying

@6Sanchize6 11 ай бұрын

I love these simple, laid out videos. You break it down beautifully

@VanntasticFinances 11 ай бұрын

Thank you so much!

@dakmycat3688 11 ай бұрын

Easier said then done. If you really wanna save cut cable, internet, and fast food. Grow a small garden.😚

@TheYamayah 11 ай бұрын

@@dakmycat3688I agree, but I need the internet!!

@thefantasyicon 11 ай бұрын

I can make the video even simpler. Income-Expenses= money left. Apply money left to the car loan. Simple math

@GrandChessboard 10 ай бұрын

@@dakmycat3688 LOL, you need land to grow food. So, add buying land at the top of a real estate bubble.

@ntxexpress 11 ай бұрын

If you can't pay your car with a credit card how would you suggest using this concept?

@Mondo888 10 ай бұрын

Brilliant absolutely brilliant thank you for share your knowledge

@darryltognarelli6769 7 ай бұрын

I paid off a truck in 9 months!! You have to realize it’s all $ management, as to what you have coming in as to all expenses going out on what can be affordable

@paulthompson8649 11 ай бұрын

Am I missing something? Where do you get an amortized car loan? When I got my truck I was told everyone only does SI loans for cars.

@JCreole 11 ай бұрын

286$ a month car payment…..Average car payment today is 1,000$ dollars 😬

@ygbodybuilder3023 10 ай бұрын

Yeah I dont know where she getting these numbers . My car payment in 2017 was 345. Now In 2023 it's 596 with way better credit

@jacobcaeli 5 ай бұрын

Do you mean because people have two cars?

@michaelsorensen7567 4 ай бұрын

Average people are stupid

@PuddlesLovesBooks 3 ай бұрын

Are you buying a land rover?

@michaelsorensen7567 3 ай бұрын

Mine's $200. Not my fault people are max financing a rolled over loan on top of the loan for their new luxury vehicle. And if you tell me you need $1000 loan then Imma point out all the used car lots with cars for under $10k and ask you to do the math showing how you get to $1k payments

@BrianK-zz4fk 10 ай бұрын

omg I consider myself very educated in finance from home not school but will need too look into this for my best friend as I this he got shafted and pass it along. btw i always pay cash after the car isnt worth the repair cost. thanks for the education

@MzPerr215 11 ай бұрын

Is there a way to use velocity banking and payoff collections accounts

@bearman933 10 ай бұрын

Great video!👍🏿

@jrcook927 10 ай бұрын

So if you used all your spare cash on the regular car loan instead of the LOC, how would that compare to total pay off amount and time?

@Mandy138Cool 10 ай бұрын

You'd have to factor in interest rate (break it down to per day) and then check contract for any penalties for paying off early. Additionally, your credit won't get a boost until x-months *after* the car loan is paid, whereas with the LOC, you are continually 'stacking' it with every net positive gain on the principle.

@Fitforacting 11 ай бұрын

Great video! I subscribed 😮

@adorsey3149 11 ай бұрын

Beautiful advice.

@xagero77 10 ай бұрын

Why are we trading the low interest car loan for a high interest PLOC and not simply just paying off the car loan directly? Just because the minimum payment is 286 a month, doesn't mean we have to only pay 286 a month. I'm not understanding the benefit of the PLOC and for a lot of people it could just turn into a nasty trap.

@ygbodybuilder3023 10 ай бұрын

Answer this man

@LucrativeApe 2 ай бұрын

Compounding vs simple interest. Car loan is low interest but it compounds and the interest is prepaid at the front half of the loan, you’re not actually paying off the interest until you’re about half way through the loan, by then you’ve paid off you whole loan and then some in interest payments. Same as a mortgage

@JamesJay2 10 ай бұрын

What would be the pros and cons of doing this with a HELOC instead of a PLOC?

@dominicksheppard4900 11 ай бұрын

The only question that I have would be how do you apply your monthly expenses to the PLOC,Is there a visa/master card attached to that line of credit?

@garywdowd 10 ай бұрын

That's what I was wondering, too. How does that work?

@blackprince7510 7 ай бұрын

You take money from your PLOC to cover your expenses. So your PLOC balance drops by, in this example, $2905 when you get your paycheck and then increases by $1572 over the month as you pay your expenses. The purpose of using the credit card twofold: 1. delaying the payment of those expenses you put on the card until the due date on your credit card statement. Which would save you a little bit of interest on your PLOC and cost no interest on your credit card. 2. having a cash-back credit card with no annual fee gets you some money back on your purchases. For example, some cards offer 1.5 % cash back on grocery purchases, among other things. So if you spend $300 per month ($3600 a year) on groceries, you would get back $54. But if you are the sort that has trouble paying off your credit card balance every month, it would not be a good idea to put your expenses on your credit card since most cards charge around 20% APR on outstanding balances. Far more than any cash back would get you.

@bigbaby4584 6 ай бұрын

People do not understand the gifts of credit but once you understand the Conspiracy of Credit your life will be an adventure. I understand very well on how the game is played. Some do not understand the concept of building an empire with your credit. Like they say cash is king but it’s so false but credit is a powerful tool to bring you millions

@bambamgold7319 11 ай бұрын

Pls can you tell me if this system work in uk or just in America alone. If it can I might need your help!

@David-yy7lb 10 ай бұрын

I paid off my truck the day i bought it with a check for the full amount off my truck👍🏿

@user-ic4pk2ru9u 10 ай бұрын

I have 4 credit cards at a total of around $7,000.00 debt. I watched a video that you put out about a line of credit vs credit cards. I would like to try what you suggested but I'm a little confused on the difference between the two. I don't think I could have my check directly deposited into one of my credit cards. Can you explain a little more on how to do this? Bypassing the bank and using a line of credit instead.

@imhooks 10 ай бұрын

The PLOC is generally through your credit union where you likely already have a checking account with. Or another local CU. Then you can just transfer your payroll amount into that account every pay period and use that account to pay expenses.

@michaelfrock2473 10 ай бұрын

Car loan at 2.5%, man those were the days 😄

@Mike_OP 10 ай бұрын

Yea try 8.6% with a 820 FICO score…. These lenders are off their rockers with these interest rates today

@morrismonet3554 7 ай бұрын

@@Mike_OP Thank a Biden voter.

@operator7585 7 ай бұрын

Still attainable

@MartinX192 7 ай бұрын

I just got offered 25% with a 720 and 3k down. My personal credit union was much better but imagine having to take that or have no car@@Mike_OP

@TheDestineyAngel 3 ай бұрын

@@morrismonet3554so if Biden gets reelected, do interest rates go higher because that would be amazing? I would be extremely disappointed if interest rates went down.

@timpickard3946 10 ай бұрын

It still seems that the strategy is to pay $1,619 per month on the car payment rather than $286.

@mattpleasant8658 10 ай бұрын

Exactly. You pay it off in the same amount of time AND you never touched the "15K PLOC cushion". If you roll the whole car amount into the "Personal Line of Cushion", you eat all of your cushion space, have less to work with, and pay a higher interest rate. What she didn't say was the car loan is simple interest as well. I would rather not borrow money at all, but if I did, I would rather borrow at 2.5% than 10.99%. Her advice is silly.

@michelesimone6752 2 ай бұрын

Where is the xtra 1619 coming from though?

@joepawling4735 4 ай бұрын

So the PLOC has a credit card attache to it, after putting all your earnings in you use the credit card for all purchases?

@eluzaigalvez2865 11 ай бұрын

What happened to your bank account if you are not depositing money they will be charging you for not making deposits.

@ridub 11 ай бұрын

Great lesson. Where do you recommend opening up a personal line of credit?

@beh4846 11 ай бұрын

I think credit unions are the way to go.

@10annsilversnake 11 ай бұрын

What if I use a credit card to do this? Or is a loc the only way this works ? What’s better ?

@jessnevares7861 10 ай бұрын

So I still don’t understand how this works. I just bought a new truck. Interest rate is 7.5% I have a credit card at 20.24% on purchases. $40k limit. No balance on card. If I pay off truck with the credit card and then pay my monthly income to the credit card and use the credit card for my expenses, id pay off the truck sooner ? I currently send $200 extra to my truck payment.

@DaveM-FFB 11 ай бұрын

It's not necessary to pay off your low interest car loan with higher interest debt. You can keep the car loan and make curtailment payments each month. You will still have the car payment, but your balance will shrink quickly.

@kowal789 10 ай бұрын

I didn’t actually start doing this until the last 6k of my vehicle loan. My numbers are different, but with a little discipline, I’ve dropped my loan down from 9 months left, down to 4 just by tossing my extra cash on it, the last 2 paycheques.

@bmurphy4444 10 ай бұрын

Everyone doesn’t know what the acronym PLOC is 🤦🏽‍♀️🤷🏽‍♀️

@thomasthurston6656 10 ай бұрын

Yes your just moving money or debts. Always better to stick with the lower apr. Most of the time you will get a better apr with a credit union. This 1k limit on this card she is talking about they must have some shit credit.

@mellogic 10 ай бұрын

Its easy to talk negative about something when you choose not to try shit at all

@thomasthurston6656 10 ай бұрын

@mellogic This makes no difference its worse if anything.

@samscouponingadventures5106 11 ай бұрын

😅 this maybe a silly question but where would you go to get a Ploc? Do I get it from the back or is it a credit card?

@velocity_banking_soldier 11 ай бұрын

You can obtain a PLOC from a bank or credit union.

@themagoofiles5985 7 ай бұрын

Why not just pay the extra $1333 on the car loan each month? Still increase your ploc for your emergency fund if you want. Keep the car loan on the lower 2.5% interest rate and you'll pay $400 LESS on interest than the PLOC. Also I checked your numbers on your original car loan and it would be paid off in 44 months not 48 months.

@divinemiss4284 11 ай бұрын

I would like to see the total interest comparison between the amortized 4 yr loan (what is remaining on it when you get your PLOC) and the total you pay for the PLOC at the time it is completely paid off?

@Kawboy65 11 ай бұрын

@@SlayerDork Exactly, this is kind of "smoke and mirrors".

@royguidry1311 11 ай бұрын

@@Kawboy65yeah, if she put every last dime she has into the car loan she would have that thing wiped out at the same speed. In fact it may even be faster if she was paying on that loan with all her extra cash weekly. For that matter you could tell her, just save every penny you make for 7 months and just pay cash for the car. Beautiful isn’t it.

@MrPetej00 11 ай бұрын

@@Kawboy65 Its not smoke and mirrors, what the line of credit gives you is access to cash in case of emergency. If you take the whole $1619 and pay it towards the loan balance you have $0 in case of an emergency.

@MrPetej00 11 ай бұрын

@@SlayerDork Because the interest is calculated differently for the LOC. So you end up paying less than with the amoritized loan.

@MrPetej00 11 ай бұрын

@@SlayerDork If you had a $20k LOC and a $15k car loan you can pay off the amortized note and aggressively pay down the LOC and save on interest

@todddooley793 10 ай бұрын

Interesting, my scenario is almost the exact same. Only difference is, my income is about 500 more a month but my car payment is 550 and it's for 25000. My line of credit is 15,000. I guess I could knock off half of it.

@letsgorangers5264 10 ай бұрын

I look at that whiteboard and it might as well conclude with “E = MC squared” because I have no idea what’s going on here.

@msmoenergydet 10 ай бұрын

We put down $3k & I paid off $2k in 9 months by doubling the principle or paying as much as I could! Original plan was 6 months & a day! Was a lil longer due to life/unforseen circumstances! Credit took a slight hit for not taking the 2 years! Then, jumped due to lower utilization/debt to income ratio! #DebtFreeLife #Discipline #PayOffDebt

@pattiellen5339 2 ай бұрын

I think if you put the total cash flow plus car payment totaling $1618 per month toward the car payment, without filtering it through the line of credit, wouldn't the car be paid off in just over 7 months as well?

@jhjaj5321 10 ай бұрын

Love your videos wish I was in your area What whould you recommend for someone who whould like to learn more about the advantages of using a system like this? Most financial advisors in my area are only interested in large income customers whould a local bank be a good reliable source for info ? Do you offer personal services via zoom or anything like that ? Either way your videos are great

@VanntasticFinances 10 ай бұрын

Yes! Services listed under videos

@AS-ng5pi 10 ай бұрын

Don't do this. Just put your cash flow on the car loan. This is no faster. If you take 286 payment and add 1333 cash flow you get $1619 as a monthly payment on that car. Take the balance of $12381 she starts with divide by 1619 and you get the same 7.6 months but without all the confusing robbing Peter to pay Paul. Just pay off the loan with your extra cash. Getting into more credit card debt is never the smart way to financial freedom. Avoid debt, live frugally and within your means, don't compete with anyone else, save and invest with a consistent mutual fund deposit. You will be glad you did. Dont let 25 year-old you rob 65-year old you of a good and peaceful retirement.

@blkted2945 10 ай бұрын

I hear ya but don't forget the interest, you just calculated the principal, most make that mistake. Just add the 2.5% divided into 365 to get a daily rate, since the 2.5% is yearly. Yeah, I watch a few of these videos and were stumped everytime, I just don't get it. I guess the same question everyone is asking but not really saying, who the heck has $1619 (the $286 plus the $1331) to pluck down on a car payment every month? No one lives like that and if so, it is only for a few months. I'm like most people, prioritize high interest credit, pay those off and I have never paid a car until the end.

@blackprince7510 7 ай бұрын

She wasn't advocating getting into credit card debt. If you pay off the balance owed by the due date of your credit card statement, you pay no interest. The purchases she is suggesting being made using the credit card are part of the $1572 monthly expenses and you are supposed to pay them off each month. But if you have a cash-back credit card, you will get money back each month on your purchases. There are cash-back credit cards with no annual fee that will get you, for example, 1.5% back on purchases of groceries, gas, and pre-authorized payments, and other cash-back rates for other types of purchases. So $300 dollars a month in groceries would get you $54 back annually. Not much but it is more than you started with. If you are not disciplined enough to pay of a credit card balance every month, you are not disciplined enough to use her PLOC method for paying off the car loan.

@carrabloyd 8 ай бұрын

Since interest is front loaded on car loans, if you pay it off before the loan term, are you refunded the interest?

@EricOrsbon 7 ай бұрын

You could also just take your $1,333 cash flow and pay it as extra on top of your $286 car payment and also pay it off in about 8 months without all of thst extra stuff. You'd just need to have an emergency fund as ahat you've paid towards the car you cant get back. Or have the PLOC available but not utilized in case you have an emergency. Am I right?

@lisam8986 7 ай бұрын

I’m confused does your method take into consideration money she would spend outside of bills?

@kam3410 7 ай бұрын

The one thing I am confused on is paying the full amount of interest on top of your entire monthly income on the HELOC. If you have savings I can see this happening but otherwise you are borrowing the interest to pay the interest aren't you? I know the payment is by default taken care of by the application of your income but that separate interest payment throws me off?

@SlackersIndustry 7 ай бұрын

Why am I buying food and paying expenses with a credit card and paying interest on it if I can just pay them cash? Car loan is only 2.5 and credit 10?

@Kawboy65 11 ай бұрын

In actuality, you are comparing a car loan with no additional principle payment to putting it in a LOC and essentially making a very large additional principle payment towards that car. If you make that same additional principle payment in the car loan, then it is payed off in 8 months also.

@cleartexas 11 ай бұрын

You can’t put all your income into a car loan like you can a PLOC or a credit card, you’d pay the car down, sure, but then your kids wouldn’t eat that month, and it would be dark too

@Kawboy65 11 ай бұрын

@@cleartexas Are you saying you can't put living expenses on the LOC and then put the remaining income on the car loan as well? Her example IS doing that exact same thing. LOCs are not some magical device that makes debt disappear, like she portrays it to be. Her example is smoke and mirrors.

@josephsgrandadventures 11 ай бұрын

@@Kawboy65you see what you want to see. Model it for yourself and then determine how it would work.

@alanmurray3624 10 ай бұрын

Does the car have an engine is it drivable?? Most cars are over 20,000 that don't require a lot of work.

@brhardi48326 10 ай бұрын

When real inflation is 5% or more and likely to stay that way for awhile, you are better off taking as long as possible on a 2.5% loan.

@timlarson7228 10 ай бұрын

Can you explain this further? Thank you.

@michelesimone6752 2 ай бұрын

You're only paying 2.5% on a loan where today. If you bought the same product, you would be paying about 8%. And now everything is inflated and costs more. So you're paying higher interest rates on something that cost more.

@timmoh89 10 ай бұрын

Just a question, is the credit card monthly payment now included in the $1572.00 expenses? Are they paying the credit card in full every month?

@soupynate2323 10 ай бұрын

it's a PELOC, depending how the line of credit was set up she may be paying interest only for the first half of the loan and then principal during the last half. This is how my HELOC is set up.

@holly52ful 10 ай бұрын

How is the loan paid off in eight months? I don’t see why! Are you doubling the payment? Please help someone! 5:43

@douglasstone186 6 ай бұрын

This has so many flaws in calculation and logic… why not just deploy your cash flow to pay down your car note? She could technically pay it off in less than 10 months, assuming there are no unforeseen emergencies.

@cornholenoob 10 ай бұрын

This is fine, until the banks call those lines of credit in tough times, folks will be left in a very very difficult spot

@michelesimone6752 2 ай бұрын

They don't call the lines of credit if you're paying diligently.

@rh5022 11 ай бұрын

Had a really bad experience with a 2nd mortgage Can't i payoff early or pay extra

@SlackersIndustry 7 ай бұрын

Why did expenses go from 1572 to 1286? And the same with cash flow?

@eddie8166 11 ай бұрын

so where do you get money to spend??, but then how do you pay off the PLOC?

@saintb1500 2 ай бұрын

Can I use my line of credit the same way ? I want to get a new vehicle right now and thinking of applying this same method with my line of credit is 15,000

@aliciataylor9790 7 ай бұрын

But what to do if no banks will give you a heloc? She also forgot to add in all the fees to get the heloc (in my area $1k-$3k)

@michaelsorensen7567 4 ай бұрын

It's a personal line of credit, not a home equity line.

@raysmith447 11 ай бұрын

How can I set up an appointment?

@THutch052 9 ай бұрын

If a person can’t qualify for a PLOC because of their credit score, is there another strategy?

@seeyaatthebema 11 ай бұрын

Hi Christy, thanks so much...I learned about this concept from you. I am paying off my car loan, but the bank continues to charge me interest though it's less for a large payment. I have a BLOC, but it's not big enough for the whole car loan. Should I transfer the entire BLOC limit to the loan? Thanks so much, you are a blessing to many!

@Jesus-kt5dc 11 ай бұрын

You could, but I wouldn't recommend it. The advantage of a BLOC is that they don't focus on debt to credit limit, in the same way they do on the personal side of credit. They mainly focus on, on time payment. I would say go with the 2/3 method, just in case of emergency.

@anthonyjohnsonjr8865 11 ай бұрын

Divide it into 3 chunks when you pay a chunk off repeat then you won’t have all your credit tied up this is just another way of doing it

@KL-em8km Ай бұрын

Does a PLOC help build your credit? How do I have a meeting with you?

@user-yb8dk7bu2k 7 ай бұрын

12 dollars in cash back doesn’t counter the 100 dollars in interest as she stated once line of credit is paid down it will plus what’s the interest of credit card ? Total interest for loan at 2.5% is only $642 with credit card interest and line of credit interest it doesn’t make sense

@christijacobs3199 10 ай бұрын

I still dont understand why they cant use the extra money each month to pay more on the loan and pay it off quickly. Your credit score still goes up. What have you gained?

@tashie6288 Ай бұрын

1:31 people are stuck on the higher interest but this is what you need to watch again to understand the money saving

@Mark-8587 11 ай бұрын

It's the same if she took the 286 loan payment and added in the 1333 cash flow to the loan payment, the car loan would be paid off in 7.46 months at a much lower interest rate.

@jonsmith7504 10 ай бұрын

Because she still needs money to live and you can't take money out of your car loan

@lrod8692 10 ай бұрын

Essentially that’s what she is saying. You throw your paycheck into this loan but that paycheck is still there to take out, unlike a car loan where you pay and you can’t take that payment out. But then what’s the point if you are going to be taking monies out

@mattpleasant8658 10 ай бұрын

@@jonsmith7504 1333 cash flow plus the 286 car payment = get car paid off at the same rate AND you didn't borrow money at 10.99%. You did it at 2.5%. Also, the theoretical person still had the full 15K on the PLOC "if they needed it" like you say, so paying off the car that way allowed more cushion than putting the car into the PLOC.

@michaelsorensen7567 4 ай бұрын

@@jonsmith7504all the other expenses are still in the expense column. OP was recommending throwing the cash flow at the car loan instead of shifting to credit, throwing all the money in, taking a bunch back out, doing the hokey pokey and turning yourself around.... Just to get the same result.

@eyekahnmeta8721 27 күн бұрын

The problem is, how about if you can't get a revolving credit?

@toyajones2434 11 ай бұрын

I would love to see an example of where a person does not have any extra flow...or where your income and expenses are aither equal or they don't have any extra money and still pay off debt

@beh4846 11 ай бұрын

she has several videos on how to turn a negative cash flow into a positive one.

@justhere4721 10 ай бұрын

Extra hours at work. Temporary Side jobs. Cut back on non essentials such as eating out, daily Starbucks, bar tabs, vacation trips. You'll be surprised at how much it all adds up to.

@tonydeleon2810 9 ай бұрын

Would it be possible for you to help me with a paying things off strategy? Thank You.

@pattycarretta9932 11 ай бұрын

This is a great way to pay off a car loan that has a lower balance. What happens in this exact scenario as you have outlined above… with the same numbers … except that the car loan is 31k and your client only qualifies for a 15k PLOC?

@basketcase-0140 11 ай бұрын

I watched a video by someone who said you would use the full amount of PLOC and pay that down, then do it again until its paid off. Makes sense to me!😊

@pattycarretta9932 11 ай бұрын

Hmm no not really because then you have an additional payment that you have to come up with since the car loan payment doesn’t go away completely for awhile. Not to mention you now have the ploc interest as well as the car loan interest that’s now there. But thank you for trying to answer the question

@latimer4964 11 ай бұрын

@@pattycarretta9932 the existing car loan payment would go into your monthly expenses, same as usual. You'd lose what you'd put in via payments for a while (until you can convert the rest) but you would ultimately win out by significantly cutting down your interest by converting a large portion to the PLOC. The winning part here is cutting down unrecoverable interest. With a PLOC, not only do you have a simple interest rate, but you also gain the function of the money you pay into it.