Pay Off Car Loan FASTER

If you have PLOC. If you don't, this video doesn't apply to you.

I have about $20,000 in my savings account. Can I just use my 20,000 like if I have a personal line of credit instead

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

Can you make a car payment with a PLOC or CCD?

Both the car loan and PLOC use amoritized interest based on what you described. Simple interest means you pay the same amount towards the principal and interest each month until the loan is paid off. An example of this is a personal loan. Amoritized interest means that as you make payments, more of that money will go towards the principal and less towards interest over time. This is why when you look at your car loan statement each month, the amount that goes towards interest goes down and the amount towards principal goes up. In the end, you’re spending far more money on interest with the PLOC than on the car loan. The only advantage here is that the PLOC gives you immediate access to cash but anything you borrow out of it will then have whatever the interest rate for that PLOC taxed onto it.

I paid off my car loan in 4 months and now have a bad credit rating because I broke the loan agreement.

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.

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.

This is like calling in and making a "principal payment" but with extra steps. Way overkill just to dodge a higher APY as the only difference in strategy

I just financed a house at $400k and a car at $30k
I could pay off my Car note faster but the inters is just $3-4k for the whole loan. Would you agree to just make minimum payments and put all efforts on my home loan since I am paying a monthly interest of $2000 and only $400 towards principal?

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.

The person used in the example needs to get a better job, she is almost broke at $2905/month. The 2.5% amortized interest is also on the balance. All this plan does is increase the risk of bankruptcy should this person lose her job. It’s far better to invest in a high yield savings account, and get a second job to pay off the car. Borrowing money to pay off borrowed money is a fools game.

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

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?

Great calculation, But lets get realistic, Let's say I have 35,000 car loan left to pay, paying $725. a month for 74 months with 15,000 down. from $45000, with a 14% interest rate what are your thoughts ?

This is VODOU math...first of all monthly expenses ALWAYS change every month. what about a large emergency expense? This works in a perfect world but life is not perfect. I can see people getting in real trouble using this method. very dangerous!

LADY I NEED TO CALL YOU ☎️

When you say put the $ Income deposit on the card?? And pay
Household out of there?? And repeat!❗️

Basically you are using your "cash flow" of 1333.00 to pay down your debt. Just say that. Take out a loan, pay car off, apply car payment of 286 and cash flow of 1333 to pay it off asap. Also don't fuq up

Wow, I can’t believe people fall for this math. If you pay the car loan off with your payment and cash flow it is still paid off in 7.64 months. Revolving debt is a trap. You don’t go further into debt to get out of debt.

Probably the worst financial advise I’ve ever heard.

It all boils down to getting a lower interest rate,, and paying it down as fast as you can. But if you borrow more,, you have to have the discipline to pay it off. If not you go deeper in debt.

This is for poor people lol.

Can I hire you to fix my financial life for me? I have no idea how to make this make sense, but my car payments are killing me. $350/m for a 2015 Toyota Corolla that I basically only use go get to work seems a bit much and after almost 2 yrs of on time payments the balance has barely budged. I need a damn break.

Ummmmm no

What world are u living in car payments and loans haven't been this low in over 30 years 😅😅😅 that's credit car balances these days, average car loans 1000 a month these days for 60-84 months, last time I've seen or heard of a 200 car payment was in the early 90s 😅😅😅

If you pay $1,619/mo towards the original car loan, you pay $116.36 in interest over the 8 months and pay it off. If you move it to the PLOC, you have to do all the work AND pay $506.15 in interest over the 8 months. You're either disciplined enough to do it or you're not. But sure, pick up the $96 in credit card rewards. Oof.

Ya, paying off stuff like that is a lot easier when you get crazy things like simple interest and a 2.5% car loan. It's this fairy tale land?

In this Car Loan video the monthly expenses are $1,572. If we exclude $286 car loan payment, we get $1,286 monthly expenses. Monthly income $2,905 - monthly expenses $1,286 = $1,619 left. If we simply put $1,619 on the Car Loan (with 2.5% interest) and we do it every month, the Car Loan will also be paid in 7,5 months, but you will only pay $113 interest, which is 3 times less than with Velocity Banking from your example. Meaning - you don't need Velocity Banking in this case. You just need to pay off the initial Car Loan faster using the money that is left after monthly expenses. Or what am I missing? I also recorded the video on your Car Loan example - you can check it and tell me if you see a mistake in calculations. I made my excel file available too. Thanks!

This is hilarious. Kudos.

Why get a Line of credit instead of getting a HELOC?

Or you could just get a car loan with simple interest to begin with. My credit union has simple interest car loans for 5.75%. There are some very good non-profit credit unions out there.

This overly complicated. There is no reason to dump it into a PLOC at a higher rate. The car loan can be paid off in the same amount of time using your cashflow as a principal payment.

😂😂😂😂😂😂😂😂😂
HELL NO.

🙄 dumb... U totally ignored the fact that u put all ur income towards the payment without explaining how all ur other expenses are paid... Oh thats right u just took all ur husband's income to pay ur debt, typical... Women should never explain math...

Expenses are 1500

Ok

I'll give you hint
Never finance anything.
Most of you will never figure this out.

Is this from 1989? Where do I get a car payment of $286? Lol

I heard if you pay off car loan your credit will take a hit.?

12K car loan at 2.5%. How is old is this video?

At this point I’m just going to pay cash not because of saving money but just to avoid too much math

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

I wish my car loan was 286

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?

Don’t do this. Please, do not do this.

Paying off the car loan in 7.6 months means you spent $1629 a month towards that loan, based on the $12,381 starting point. With a cashflow of 1333+286 (moving the car payment to somewhere else)=$1619 it doesn't look like you've actually done anything other than increase your monthly car payments to pay it off faster, all you've done is lump the money all together. Anyone can pay off a loan faster by just paying more monthly, without having to do the the HELOC. I've done it on every loan I've ever had. There doesn't appear to be anything special to this method, you just carry the debt in a different location. Anyone?

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!

So crazy to worry about paying off a car loan rapidly at that really low interest rate. Most people should probably focus on tackling anything else or investing.

This Dave Ramsey level of being against borrowing never made sense to me.

Live within your means, save cash buy a cheap car outright. Save money to buy a better car later. Chances are you won’t want to spend all of that saved money which is now making you money with intrest !.

Original Car Loan (over 4 years):
Monthly Payment: $271.32
Total Interest Paid: $642.25

PLOC Strategy (paid off in 7.64 months):
Monthly Payment: $1685.31
Total Interest Paid: $494.78

Applying Extra Payment to Original Loan (paid off in 8 months):
Monthly Payment: $1685.31 (combination of original payment and extra amount)
Total Interest Paid: $109.14

Don't use LOC...