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!


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.

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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.

How to create a budget:
How to pay off a 30 year home mortgage in 5-7 years:
Understanding how to calculate credit card/ (PLOC) interest:

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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.

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Laura Pitkute : How to pay off student loans 4-5X faster




  1. fist of all the mortgage bank don't allow anyone to make payments to the principal specifically with any credit card! cuz interest accrued daily! would you mind explaining that in detail please?

  2. This is a great idea thank you so much, the only thing this might affect will be your credit score as you will be using 3/4 of credit card balance, however, I rather lose credit score than paying more overtime👍🏽 Keep up the good work

  3. it's just a bad, bad idea to use the Personal Line of Credit in this way. this strategy is 'use credit for your emergency fund'. if u trust banks to be there for you if u have an emergency like losing your job, then see how far your trust for them will last when they screw you & remove that credit that they fooled you into thinking that it is even 'yours'. it is theirs that they can remove any time they want.

  4. I've watched a few of her videos, they are definitely innovative as far as how to handle debt. Unfortunately I can't stop myself from recognizing how gorgeous she is and it bothers me that she isn't wearing a wedding ring in any of her videos. There is NO WAY she is single with how friendly she is and how she looks. Without wearing a ring she must have men CONSTANTLY hitting on her.

  5. Hi Laura,

    Quick question. I watched both of your videos about paying off mortgage and school loans… which I’m currently trying to do (very informational video btw). My question is, is there a difference between your approach using a line of credit verses if I throw all of my extra savings per month against the principal of my school loans as I go (instead of into savings)?

  6. Can somebody help me figure out what I'm missing? It takes about 10 months to pay off 15K with the line of credit but this timeline is only possible because you have 1,500 of cash flow coming in every month, right?

    10 * 1,500 = 15K

    Why not save that 1,500 every month for 10mths, in a 1.75% savings account and then pay the principal in bulk from the original student loan account? Don't you get more from it?

    10 * 1,500 = 15K + 1,642.86 (1.75% in APY over 10mths) = 16,642.86

    I'm for sure not trying to argue it, I wanna know what I'm missing? Any input? Thanks!

  7. Can you explain the benefits of paying all your bills using this line of credit, since you would be accruing interest on things that didn't have interest to begin with? I understand the difference between the types of loans, I'm just trying to understand the benefit of putting all your income and debts on a line of credit, and not just put the student loan itself and apply any cash flow, including saving directly to the line of credit.

  8. This is great information, but I have a counter to what you say in this video:

    Your plan is not taking into consideration of the interest accrued on your line of credit. Banks actually calculate the interest on a daily basis. So, using a line of credit interest calculator you will quickly see you cannot pay off the $15,000 line of credit in 10 months, rather it will take you about 11 months. Anyways, after doing some math (shown wayyyyy below of this comment), you will see that that you have to pay a total interest of $11,221.75 by the time your loans are done (This includes the interest accrued on the loans + the interest accrued on the line of credit). Though is is far better than the $44,006.31 paid in interest for the traditional payment, I feel like there is a better way to go about it.

    Instead of getting a line of credit, if you just threw in the $1500 cash flow directly into the principle every month, you total interest accrued would only be $9,561.47.

    Advantages to just paying off your principle every month is:
    1: You save $1660.28 overall.
    2: Your credit score won't plummet. (You should never spend more than 30% of your line of credit every month to improve your credit score. Preferably, stay within 10%. With your method, you were spending 75% of your credit line and this is not good).
    3. You can still get a $25,000 line of credit and you will have all that $25,000 for a rainy day. Just use a little bit every month (from your $2000 expenses) and pay it off every week. This will dramatically improve your credit score.
    4. Your plan assumes the interest rate's line of credit is only 8%. The range is usually 7% to 25% from what I have seen. Unless you have a great credit score, it would be tough to get 8% interest rate on your line of credit. If you get a higher interest rate, you are only paying more in interest to the line of credit.

    Point to take home is that don't spent more money on the credit card than what you have in your checking/saving account. Only exception to this is if the loan interest rate is much higher than your line of credit interest, then you may consider it after doing some math.

    See below only if you actually want to see the math for my point:

    Here is the scenario you provided:
    1. Loan Borrowed: $80,000
    2. 6% Interest accrued during 1 year deferment: $4,800
    3. New Principle amount: $84,800

    Using traditional method & Karla's mortgage calculator:

    1. Monthly payment: $715.59
    2. Total interest paid by the end of 15 years: $44,006.31
    3. Total payment by the end of 15 years = $84,800 + $44,006.31 = $128,806.31

    According to your plan:

    1. Get a line of credit for $20,000 w/ 8% interest
    2. Use $15,000 to pay off a huge chunk of the principle.
    3. Pay off the $15000 balance on the line of credit using your cash flow of $1500 –> so theoretically you should be able to pay off the loans in 10 months. But this is the first place where your calculation is wrong. B/c the banks charge interest on a daily basis, to pay off the $15,000 loan w/ 8% interest in 10 months, you have to pay $3,568.88 per month. However your income is only $3500 so you cannot pay it off in 10 months. It will take you 11 months to pay off the $15,000. Of these 11 months, you will pay your entire $3,000 paycheck towards the line of credit for the first 10 months, and on your 11th month, you will just have to pay $2,728 out of your $3,500 income. So, during that 11th month, you will still have $772 left over. (Use Bankrate's line of credit calculator [just google search it] to figure out these numbers). It's pretty simple.
    4. I am going to assume that you are going to use that left over $772 as cash flow to pay off your loans. So, instead of paying $15,000 every 10 months, you actually pay $15,000 the first month, and $15,772 every 11th month ($15,000 from the line of credit and $772 left over cash flow from the 11th month).
    5. Putting in these values into Karla's mortgage calculator ($15,000 on the first extra payment, and $15,772 every 11th month), it will take you 4 payments $15,000 from your line of credit.
    6. Interest paid during these 11 months (used Bankrate's Line of credit calculator online) –> $728.
    7. So, the amount of interest accrued for the 4 cycles of $15,000 borrowed from the line of credit = 4 * $728 = $2,912.
    8. Amount of total interest accrued on the principle by end: $8,309.75 (This is great compared to the $44,006.31 from traditional method).
    9. Total interest you had to pay by the end = $8,309.75 + $2,912 = $11,221.75
    10. Total payment by the end = $84800 + $8309.75 + $2912 = $96,021.75

    My counter-method to this:

    1. Instead of getting a line of credit, just put the $1500 cashflow that you have left over every month directly towards the principle.
    2. So instead of paying ~$15,000 every 10th or 11th month, you are putting in $1500 extra payment every month.
    3. Total interest paid by the end of term: $9,561.47 (as opposed to the $11,221.75 according to your plan)
    4. Total payment by the end = $94,361.47 (as opposed to the $96,021.75 according to your plan).

  9. wow wow wow Laura you've done it again! Plugging in my numbers and seeing I would end up paying DOUBLE in interest, God forbid. This strategy has me MIND BLOWN! Def going to do more research to see how I can incorporate this method

  10. This sounds like an excellent tactic. I have a question though. I have a credit card with a $30000 Limit and alot of my debt student loans and other things don't allow me to pay with credit cards should I ask for a cash advance?

  11. This video is terrible advice. A bunch of hand waving to accomplish the exact same thing as attacking the debt with everything left over from your budget after you have saved up an emergency fund. If you make 3k per month and have been paying 715.59/mo and never have anything left over at the end of the month then this strategy will not help you. This strategy only works if you have money left over at the end of the month and surprise you don't need a line of credit to take that extra money every month and throw it at your principle. There is absolutely no reason to complicate this by adding an extra layer of pass through debt. People that are good with money realize why this works and subsequently why it is pointless. People that are bad with money will try this, get a false sense of security and consequently their average balance on their line of credit will slowly increase every month rather than decrease.

  12. Another thing, I had a personal loan and tried to pay the principal balance and they kept refusing saying I had daily interest accrued so couldn't make a payment specifically to principle only, every payment deducted interest then applied the rest to principle


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