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@Jesus-kt5dc3 ай бұрын
Not only is it worth it, but when used correctly with 0% interest balance transfers, it's probably the most effective LOC.
@emojidinosaur73003 ай бұрын
@@Jesus-kt5dc agreed!
@DenzelNapoleonRodriguez6 күн бұрын
Good video Velocity Banking has its benefits and I think some of the other content creators just get excited about talking about the benefits and oversell it or there are bad actors leading people astray.
@HackYourCreditCards6 күн бұрын
Well said, that is exactly why I put this together. There are so many beneficial methods to reduce and eliminate debt, but it's never a one shoe fits all. Hopefully videos like this will help educate and explain so people can make the best decisions for themselves and their situation. Thanks for watching!
@jaimegranero9027Ай бұрын
It reduces 400 because the 400 are included in the 2000 Also you are right, I hate that they never add the interest, however it does work lowering interest
@susan96302 ай бұрын
This spins my head around. Butt... if you have a 400 minimum and you pay in 2000, of course that satisfies the minimum. If the 400 was a part of the expenses, then you'd put 1600 on the card so it would drop the balance by 400 minus the month's interest, yes?
@HackYourCreditCards2 ай бұрын
Yes , correct ! You got it. Thanks for watching and i hope it was helpful. Knowledge is power.
@melissaevans40152 ай бұрын
Thank you. My credit cards payments are already included in my monthly expenses. Just because I satisfy the minimum payment by using my income to pay my credit cards doesn't automatically turn the minimum payment into "Free" or "Extra" money. What it does is prevent me from having to pay interest on my credit cards. When I first heard this method of velocity banking I was super excited...but then quickly realized I'm not getting this extra money that they claim.
@HackYourCreditCards2 ай бұрын
Well said when you stated "using my income to pay my credit cards doesn't automatically turn the minimum payment into free or extra money." .... I think you said it better than I did ;-)
@jaimegranero9027Ай бұрын
The method is only to save in interest
@CLJlovesmalКүн бұрын
Exactly. I had a conversation with a friend who has seen me struggle with understanding and using more than on credit card (only opened more because it was suggested to help my utilization) and had to explain things sadly after I made mistakes that cost me credit and some of my score. Came out of hospital to find I'd racked up a bunch of debt as a result of a bad reaction to medicine and having black outs and poor impulse control. I'd started with great credit from years of medical debt.
@Pstmstr4 күн бұрын
IF their total monthly expenses included the $400 credit card payment they would pay $2000 and only put $1600 of expenses back on the card. The ONLY time VB works is when the method being used to pay has a lower interest rate than the debt being paid. IF the expenses put back on the card are incurred near the end of the month they could save a little interest in this example. VB advocates never compare apples to apples and people want to believe there is some magic formula for paying off debt. This person needs to get on a budget, pay all they can to the credit card monthly, not just the minimum and get it paid off. I've watched a lot of VB advocate videos, specifically the lies told by Christy Vann. The never suggest getting extra work or trying to make more money. In fact, she talks about going on vacations and not changing the lifestyle to get out of debt. All smoke and mirrors, The monthly interest is just one of many things these people omit. on purpose. Thanks for this video.
@Sassycatsoapery2 ай бұрын
Thank you for clarifying! It makes more sense if you are stating that the CC pymt comes out of the total expenses. Questions: if the CC pymt is NOT included in the expenses, then you have no money to pay the CC bill , correct? If you are negative cash flow, can leveraging other LOC’s (including another CC) help you get out of that negative cash flow…. Or should that person consider a part time job/side hustle? PS….thank you for the vids! Super helpful
@HackYourCreditCards2 ай бұрын
To answer your first question: In the example I was critiquing you are correct, if the CC payment is not in their expense calculation and they have negative cash flow (meaning not enough money to cover there expenses) and they have no money to pay the CC bill. Not a good idea to miss a CC payment. Regarding your second question about negative cash flow (fancy way of saying "cannot pay the bills") there are only 3 options (1) decrease monthly expenses on items that you can such as entertainment or eating out in order to pay the remaining bills, or (2) get a monthly stream of income (like a second job, or depending on the credit card debt amount sell some stuff such as clothes or electronics to generate the money needed) to cover the expenses, or (3) borrow money to cover the expenses but that typically comes with costs (such as interest) and you are not solving the problem but adding to your debt. I guess technically a fourth option would be bankruptcy but let's just pretend that's not an option.
@Sassycatsoapery2 ай бұрын
@@HackYourCreditCards Thank you you for the details in your reply! Very helpful!!! Thanks for all you are posting! I’m understanding the idea of leveraging and velocity banking!
@Moving2Win12 күн бұрын
@@SassycatsoaperyEven though I read a comment that your money doesn't increase, it kind of does by grasping that money into a line, isn't removed from your economy, it's still in your control. A lot of people see money into a line as an expense (this is key). Which is what scares them to put income into a line. As for your question about how manage credit cards, it's called bill matching. Remember, money into a line isn't gone (this is key) (your question about CC). This allows you to use one dollar two times. If you have a credit card with 200 minimum payment and light bill for 200. You have to come up with 400 dollars, right? Wrong, you have to come up with 200. The other 200 become cash flow. So 200 dollars go into the credit card, then pay the 200 light bill. This bill matching satisfied both, credit card and expense. The other 200 is now left over if you originally had 400. So that's how you use one dollar twice. No need to get a second job. So if someone has multiple CC they can bill match the multiple credit cards. This method helps a lot of people go from negative cash flow to positive cash flow. Hope this helps, have a great day.
@Moving2Win12 күн бұрын
@@SassycatsoaperyOne more thing before people start asking about interest. Does interest go up on the bill matching cards? Yes. Unless the cards are close to max it's nothing to worry about. Why? That's because you're lowering your primary card by a lot. Perfect example is Molly from AskMeHowIBudget she was stuck in the hamster wheel of payments and interest. She then created the bill matching system. She then was able to pay down her primary card with a 8,300 balance to 500 dollars. In 10 weeks. Not months, not years, but weeks. Have a great day.