Velocity Banking Money Tracker Report Part 2 of 3
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- čas přidán 4. 10. 2023
- Velocity Banking Money Tracker Report Part 2 of 3 shows you how I use Velocity Banking with multiple credit cards.
Download my Velocity Banking worksheets and case studies here payhip.com/AskMeHowIBudget
I paid my first primary credit card down in 10 weeks. I started the month of September with a different primary credit card. I use the credit card minimum payments that are due (for my multiple credit cards) to free up cash flow. I meet the monthly obligation by matching those cards with bills. The bills make the minimum payment and then what I WOULD have spent on those minimum payments are now funneled to my primary card (the one with the highest minimum payment due).
I NOW have room to breathe! I can apply those minimum payments to my primary card to pay down my debt quickly OR, if money is tight this month, I can rest easy knowing my miscellaneous bills are taking care of the minimums on the majority of my other cards. I no longer worry about interest!
Once I learned how velocity banking works, I was convinced! This is the BEST way to pay off credit card debt.
If you're looking for information on how to pay off credit card debt fast, then you have come to the right place! You can learn from my journey and apply to your own financial situation.
NOTE: I am not a financial advisor and I do not provide professional financial advice; the information presented on this channel is presented for information and edutainment purposes only. Following any words, actions, or advice in this video or on this channel as professional financial advice is not intended and is the responsibility of the viewer, not the video creator. This is my personal journey for getting out of credit card debt.
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I just love your videos
Thank you! ❤️
Excellent video! Thank you so much! It really helps to see it this way!
Thank you for showing the graphics. They’re so helpful. I have been following along for a few months with Christy Vann ... and have learned so much from her. I’m glad to help support your channel too. At the moment I just let the commercials play.😉 Right in the middle of getting debt out of my life, I got a detached retina, and I have no insurance...and today my husband took out a loan to “help” pay the hospital bill. 😢 I’m trying to figure out the best strategy to overcome these HUGE setbacks!
I don't have insurance either and was hospitalized with two ambulance rides back in 2021. Just FYI for anyone else who might be reading this: The hospital cut my bills by 50-75% because I didn't have insurance. One doctor, who never technically saw me, sent me a bill for $1,600. I called the billing department and disputed it. I was told they would remove it from my bill. I was told he had filed my case as Covid related (it was NOT), the woman in the billing department told me he would be paid anyway by the state because he filed it as Covid and she didn't seem too interested that he filed false documentation. With each bill I was able to name the price I felt I was able to pay each month (none of these monthly payments is more than $47). There is no interest on medical bills and I use these bills to meet my credit card minimum payments. I have one bill that went to collections because the doctor was so horrible I refused to pay for a full year (then I felt guilty because he had treated me for 3 days, even if it was a HORRIBLE experience). So even with that collection on my record, my credit score is still in the 700s because medical bills do not affect your credit like other bills.
@@askmehowibudget this is good news! My bill has been cut drastically from the hospital. But they’re only giving me 12 mos. to pay my portion, that comes to just under $600 a month, which is a third of my husband’s SS. I’m in my 4th week of no activity, and laying faced down to let my eye heal. Some of the other bills are small and allowing payments. It’s the follow up appts that I’m so worried about, but am using CC and VB those payments. I’m trying to figure it all out. Thank you for sharing your story... I get encouraged seeing all your examples. Also, thank you for replying! 😉
So sorry to hear. I had a detached Retina a few years back. Good luck to you.!
@@askmehowibudgetUPDATE: Molly! I just had to come back here and tell you what happened with medical bill vs. loan that the husband took out on Thursday. I spoke to the husband after very little sleep last night, and explained the money and interest was going to triple medical debt. I showed him how we could foresee-ably pay the same amount toward the hospital bill and be done in a year vs. paying the loan for FIVE YEARS and paying an astronomical interest penalty. The loan funded this morning, and deposited into the bank. I made some calls, and my huband went to the bank, got a cashiers check and drove back to the finance company and enacted his RIGHT TO CANCEL and the loan is no more. I have so much peace about the finance part of this medical event. I just wanted to come here and say THANK YOU, THANK YOU, THANK YOU for sharing your insight and experience with me, you didn’t have to do that. But you did. I’m so grateful.❤
Thank you thank you thank you! It clicked for me with this video.
I am watching all of your videos some twice and I think it's starting to make more sense to me. I see a long road ahead but I definitely will try this method.
Me too. Up early this morning, so excited to carry on binge watching
I really like the way you explained the "no interest" being paid on the items you charge that you have prepaid. I will have my first Balance Transfer paid off next week! So excited b/c I've never accomplished this before. Thanks to you and Christy I've been able to redirect money to make it happen!
I am so HAPPY for you!!! And I love that you're recording your journey for others to learn and share!
I would like to know more about how you paid off your first credit card. You paid atleast $305 each week and got a over $8000 credit card down to $550. If you paid $305 for 12 weeks, it's that around $3660. Sorry for these silly questions. Maybe I'm not understanding something. But I do appreciate your videos. I'm starting to think about paying off CCs and bills in a different light. Also I like the way you show how your doing this with your graphics.
Hi! Thank you for your question! My husband and I get paid weekly. My income is regular and pretty consistent (provided I'm not out sick), but I never know what my husband is bringing in until Friday (he's a remodeling contractor who works almost exclusively for friends and family). We average about $5,000 a month in the summer and in the winter it could be $2,500 or less.
On Saturday, I take our paychecks to the bank and over the weekend I pay what needs to be paid to get us to the next pay day. I match bills to my multiple credit cards so that those bills BECOME my credit card minimum payments (this frees up cash flow from multiple minimum payments that can be redirected to ONE card to pay IT down FAST). After I pay what needs to be paid, I park my money in my primary card (meaning instead of leaving any money in the bank, I make a payment on my credit card and it BECOMES my bank). I buy my groceries and my gas from that ONE card and anything I need from that card (all budgeted).
When I make those weekly payments it lowers my average daily balance. So my principal is getting paid down with the "extra" money from those cc minimums and my interest is reduced because I'm making frequent payments.
That first card was paid off in 10 weeks. This next one will take longer. I'm going to do a follow up once I get caught up on the case studies. 🙂
You can follow the debt payoff for that first card in my playlist on the home page.
Hi, Thanks for this info. Where is part 3? I can't find it. Maybe it's not out yet?
Here you go. 🙂czcams.com/video/9l4gLHsE6XE/video.html
I understand that when you are "sleeping" the card means that you prefer to allow interest to be charged and added to the current balance by trading access to the full credit charge payment so that you can redirect it towards another more urgent need or goal. However, I want to be clear that the balance on that "sleeping" charge card will go up on the due date, but that is by choice because of the benefit of getting access to the charge card payment. I just finished explaining this to my wife and daughter. They were amazed at this option with a credit card line. Great work! I wish I had known this before I went out and acquired a HELOC, but that's okay, I am still getting better cash flow although not as clever as you process :)
It’s coming across fuzzy or not in focus 😢
Thank you saying this, I’m recovering from detached retina surgery... I thought it was me!! Going to listen. Grateful for the info Molly.
Sorry, y’all. It should be better in the future. Doing something different now. 😁
Ok I’m revisiting this one to understand the sleeper cards and bills on the right. QUESTION:: card four, had a min.pymt due ,on the 8th of $94.00, but you made two payments of $46 over a two week period? And they accepted it in partial payments? Also 46 x 2 equals 92... so you added e trap on the second week of Starbucks money? Did I mention as that? Really, I’m more curious about partial payments, and if it’s allowed. 😊 thanks in advance!
Excellent questions! Yes, two payments: one was $46, the other $48. Yes, and I can make payments as often as I want just as long as that minimum is met no later than the due date.
Thanx for the interesting video. You certainly are knocking the daylights out of those Credit Cards. I am especially interested in hearing why you paid Card Three down to $252.00 balance then switched to another card to carry on your Velocity Banking.
If I'm following you correctly, Card three was your primary Velocity Banking card. Just curious, And thank you for sharing your VB journey.👍👍👍.
Card One was my original primary card. I paid it down to a $550 balance by the last week of August. A minimum payment was not going to be due on that card until October and then it would only be $27. That bought me some time - about 5 weeks (last week of August and all of September) where I could work on a new primary card and bring ITS balance down. When the minimum payment came due on that initial primary card (Card One), it was only $27 and that is totally doable, even if I don't have a miscellaneous bill to match it with so I went ahead and made the switch at the end of August and made Card Three my primary card. I chose Card Three because it had the next highest minimum payment (my original card, Card One had started with a $305 minimum payment). Because Card Three is now my current primary card, I no longer have to make that $252 minimum payment.
@@askmehowibudget Thanks for the clarification. I apologize for stating $252 instead of the $550. Again, thanks for your excellent demonstrations of the practicality of Velocity Banking!!!💪👍👍👍.
Even though you think you're just bringing the cards back to the same amount, I'm sure your interest on the "sleeping" cards do come down slightly because the balance came down for the period you parked the funds
Yes! And when we match bills AFTER credit card closing dates, all the better! I'll be doing a video on that soon!
So how are you paying down your debt if you are only paying a bill then paying that bill off?
This video is part 2 of 3 videos. Part 3 will show how I'm paying the debt off. I should have that video posted by Sunday evening (October 8). The left side of the worksheet is where I deal with my weekly financial obligations. The right side of the worksheet (and the bottom of the worksheet) addresses my primary card. I'm paying off debt one credit card at a time. One card gets all the focus, (I call it my "primary" card). This strategy accelerates the debt pay off and offers breathing room when needed.
She isn't. Bill matching "feels" like it is doing something, but the balance on all the bill matched cards goes up each month from interest as the balance on the single card goes down. It can't be any other way. The ONLY way she is paying down OVERALL debt is by spending less than she makes and paying the difference.
@@SchnabelMcSchnabelThat's the system. You're paying down the main credit card with groceries, gas, miscellaneous and cash flow. The key being cash flow. The bill match (sleeper cards) are bill match to stop the bleeding. Yes, most likely balance goes up but no need to worry unless a sleeper card begins to reach maxed out. The reason not to worry about sleeper cards, is because you're paying your primary so fast that you'll eventually address one sleeper card at a time. With increase cash flow, so each sleeper card gets paid off faster and faster. Have a great day.
Ok so the bills due for 9/23 thru 9/29 are paid actually with income from week 9/16 to 9/22 because you are paying those during this current week? Am I understanding that correctly? And then your deposit to your primary card goes on 9/29?
I think I am understanding the concept of this works but it’s the logistics that are hard. How do you have room to pay your daily expenses on that primary card if it’s maxed out when you start this?
Correct. Bills paid 9/23-9/29 are from income earned 9/16-9/22. Deposits aka payment to primary card happens every week. If you're paid bi-weekly, you'll do it bi-weekly, if you're paid monthly, you'll pay monthly. Basically, you get paid, you pay the bills that need to be paid before the next pay period and whatever is left over is paid on the primary card.
For a maxed primary card: I start when my paycheck has cleared my bank. I know about how much I have paycheck to paycheck to get groceries or gas. For example, I know I spend about $50 a week in gas, my husband spends at least $50 in gas and I'll probably go to the grocery store and spend about $100. So the old way, that $200 would've been coming out of my checking account, paid with my debit card. INSTEAD, now I pay my primary card that $200, when I get paid, BEFORE I go to the grocery store. BEFORE I get the gas. For my current primary card it takes 2 days from the time I make the payment online to the time my balance comes down. So, I'm pre-paying to make room on my credit card for those items. It's not extra money. It's money I'm going to spend that week anyway. Prepaying for those items will get me through that first week. Then everything else continues as normal. But when maxed, first week out, start when you get paid and have the money to buy groceries and gas and instead of going to the store and buying those items with cash, check, or debit card, prepay for those items on that maxed out card. Wait 2 days for your credit card balance to come down. Then, when you need to get groceries and gas, you can use that card. Does that make sense?
Yes it does! Thanks so much! I really appreciate your videos because it’s real life how to apply this. I like Christy Vann’s videos but they are all looking at things by the whole month.
When do you use the cash flow to pay down the balance on the card? To me it just sounds like you are paying them charging again not making it to down yet in your case you have paid off cards. Sorry I am just confused.
@donna4535 Excellent question! My multiple cards (left side of the worksheet), are not getting paid down (yet). I'm just neutralizing them. I pay down one card at a time. The card I'm actively paying down is what I call my "primary" card because it's my main card, the one getting all the love and attention at the moment. I deal with that card on the right side of the worksheet. I'm working on part 3 of this video trilogy this weekend, it should make more sense when you see it.
But I didn't think you could pay a credit card with another credit ccard?
Neither did I. HOWEVER, First Premier MC told me today that I should pay my bill over the phone with them - USING A CREDIT CARD - if I wanted my payment to post immediately. I was so surprised that I had her repeat what she said to make sure I heard it right. 😂
Hi @donna4535! What I think she is saying, if I’m following correctly, for instance, is that she calls card company 2 to make a payment from her checking account for the amount of the child support, waits for that to post, then pays the child support with card 2. It’s the money that would have come out of her checking for child support anyway, she just uses it to pay the card instead. I hope I got that right.
@@STOPTRUMPPROJECT2025 Thanks I will have to call mine to see if they do too.
@@kzmaddmate ok that makes sense
Whaaaat???!!! Well that is interesting!