This is a requested video of the Velocity Banking strategy I shared in my “How to pay off a 30 year home mortgage in 5-7 years” video, but rather than focusing on mortgages this video is all about student loans. The purpose of this video is to provide insight into the step by step process of implementing this strategy as well as understanding the terms associated with a student loan. Follow along with me in this video to learn how quickly you can pay off your student loan debt and to find out how much money you can save in interest using this strategy!
RECAP OF THE VIDEO:
I start off by explaining the significance of cash flow and how you can identify and maximize your cash flow by using a budget. I go on to identify the terms of a student loan and clarify the outcomes of a deferment. Then I introduce the strategy by explaining how a line of credit can act as a tool which will chip away at the student loan principal balance in large massive chunks. Once the line of credit is in place which can be either a credit card or a personal line of credit, this new tool becomes the main banking tool acting as both a checking and savings account in one. The implementation of the strategy begins by taking 3/4th of the limit of the line of credit to use as principal paydown on the student loan. Reason 1 for using only 3/4th of the line of credit limit is to avoid getting the account frozen and reason 2 is to leave extra room with access to money incase of an emergency.
Once net monthly income and monthly living expenses are identified, the next step is to see how long it will take to pay off the new balance that is on the personal line of credit. With my example, I go on to show that it will take 10 months to pay off a balance of $15K and using an amortization calculator you can put in your numbers to figure out how many times the chunking method would have to be repeated until the student loan is completely paid off.
VIDEOS IN THIS SERIES:
How to create a budget: https://youtu.be/Luu3ETRDleE
How to pay off a 30 year home mortgage in 5-7 years: https://youtu.be/4GonTct2WMk
Understanding how to calculate credit card/ (PLOC) interest: https://youtu.be/J9978byclgk
AMORTIZATION CALCULATOR APP (KARL’S MORTGAGE CALCULATOR):
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DISCLAIMER: I (Laura Pitkute) am not a financial advisor, real estate broker, a licensed mortgage broker, not a certified financial planner, not a licensed attorney, and not a certified public accountant, therefore please consult with a competent professional prior to engaging in any financial strategies. Not everyone will experience 100% success rate by using this strategy as it requires a commitment to keep applying this strategy over time until the desired result is achieved. I (Laura Pitkute) do not promise or guarantee any specific outcomes and/or results from the use of this strategy.
Laura Pitkute : How to pay off student loans 4-5X faster