hello and welcome back to my channnel I am Christy van with fantastic finances and on this channel I teach velocity banking so today I was working with an elderly man who is trying to figure out his debt and he's feeling overwhelmed but when I saw what he already has in his possession such as the line of credit I realized that he doesn't have any problems he just feels like he does so let's talk about exactly what kind of issues he feels like that he's having currently so he has a personal loan at $26,000 with a $378 a month payment it's for 10 years at 11.99% you have to understand this man is in his 70s and he's concerned about paying on a personal loan for 10 more years he shared with me that he had to have a lot of dental work done it cost him so much money this $4,050 is just his anesthesiologist bill that's crazy crazy right so he is now in over his head at $30,000 plus of debt that has a total monthly payment combined of $1,078 a month so he's feeling like he's in a little crunch but this one is at a 0% for six months but that six month ends December of 2023 guess what this is the middle of October 2023 so he doesn't have another enough time to pay this off before that 0% turns into interest and starts eating him up but we have a plan because he already has this line of credit in his possession with a zero balance so he has $15,000 to work with so he is in great shape and doesn't even realize it his income is at 4746 he has 3465 in expenses every month and that includes his rent food and these expenses and he has a cash flow currently of $1,281 so knowing that he has the $155,000 available the very first thing that I suggest he would do that I would personally do myself is I would pay off this personal loan he needs to get rid of that we don't need to be throwing interest on him at the end of December we need to be getting that out of his way so if he takes the $115,000 limit he has and pays off the $4,000 50 that means that he'll have a balance on his line of credit of $4,050 okay but what did that do besides just pay off that loan it gave him $700 in cash flow on top of the 1281 that he currently has now he has $1,981 in cash flow that's going to do nothing but knock this off right but what else can we do we can take $110,000 of this line of credit and also apply it to here so now he has a $116,000 balance here he still has the monthly payment because he's not paid it off yet but we're going to add the $10,000 that we used to pay down this loan his balance now on the line of credit is $4,050 next he will bring his income of $4,743 and place it all into this line of credit now this line of credit is currently at 11% okay so we're going to figure that interest next but what happens when this income goes in well it's going to knock off any payment that he would have for this line of credit so figuring the interest at 11% on the high balance would be approximately $129 but is he going to pay that no he's not going to pay $129 in interest because he is knocking the balance right down with his income meaning his balance now is 9304 meaning that that interest charge is going to be less because the bank's figure on the average daily balance but I'm going to go ahead and figure on the high balance and I'm going to put $129 for for his interest on this account even though it's not going to be that high so his balance now is at 9433 now we can't forget his expenses he's going to have monthly expenses like I said earlier he pays his rent his electric bills his food his gas so he's going to have the expenses that he currently has at 3465 but it's no longer 3465 is it no because when he paid off this loan here his expens came down so you would do 3465 subtract the 700 that he was currently paying his new expenses are 2765 I hope that makes sense so we will add the 2765 in his new expenses bringing his balance to $1,198 month two we're going to do it again we're going to bring his income into the account making his balance 7462 so we're going to have to add more interest for month two so I'm going to take that off of the high balance of $1,198 so he'll pay approximately $112 in interest bringing his balance up to $757 remember we have to add those expenses in again at 2765 making his balance now $1,339 so the $1,339 is now the beginning balance at month three so his income is going to go into this line of credit again bringing his balance to 5593 so we have to add some more interest again so I'm going to take it off of the high balance of 10,339 and that's going to give him approximately $96 in interest we're going to add back in his expenses at 2765 bring in his balance back up to $845 this month we're going to bring in $5,000 more from that other personal loan so if you remember here the balance was 16,000 and now it's going to be 11,000 because we're adding 5 more, into this personal loan bringing his balance back up to $3,454 we're going to now bring in month four of his income so the 4746 goes in again meaning his balance is now 8708 we're going to add some more interest I'm going to figure the 13454 at the 11% interest rate so that we get a charge of approximately only $125 we're going to go ahead and add his expenses back in again which is the 2765 bringing him back up to 1,598 Bringing In His income again for month five 4746 bringing his balance down to 68 52 so in month five he can add $5,000 more dollars to pay on to that personal loan that will bring the personal loan down to $6,000 his balance will now be 11,852 so I'm going to take the interest off of the 11,852 meaning that's approximately $19 in interest then we're going to add in his expenses again 2765 for the month bringing him to a balance of 14,000 $726 in month six his income is going to go in again bringing him down to $980 so I'm going to take the interest off of the high balance at 14726 times the 11% which is going to give him approximately $135 in interest plus We'll add in his expenses again 2765 bring in his new balance to 12,880 month 7 4746 of income goes in again bringing his balance to 8134 we're going to add in the interest and I'm going to take it off of the high balance for a total of approximately $118 in interest plus his 2765 and expenses that he does have to pay his balance will be $1 ,7 then guess what in month eight we're going to do it again 4746 bringing him to $ 6271 that's eight we're going to add in the interest that I'm taking off of the 11,017 he'll pay approximately $11 in interest then he's going to add back in his living expenses bringing his balance back up to 9137 in month nine his income is going to go in again bringing his balance down to 4391 we have to add some interest so I took it off of the high balance bringing him to approximately $84 in interest for month9 his balance is now at $4,475 we have to add his expenses in again bringing him back up to $724 in month 10 we're going to bring in his income again of 4746 bringing his balance down to 2494 we're going to add the interest we'll take it off of the 7240 giving him approximately $67 in interest let's go ahead and add in his living expenses again bringing his balance back up to 5326 in month 11 his income of 4746 is going to go in again bringing his balance to $580 right here is where we're going to pay off his personal loan in full so we're going to add in the $6,000 pay of personal loan that means that this 378 is now gone the 6,000 is paid in full he's paid a total of $26,000 his expenses at 2765 now come down making his new monthly expenses 2387 now we're going to show his balance at $658 6580 being his new balance we're going to add in his new expenses at 2387 plus the interest which I'm going to figure the interest off of the 6580 which gives him about $61 in interest bringing his balance to $9,250 month 12 his income at 4746 is going to go in again bringing his balance down to 4 3282 so we've got to add in some interest so we're going to figure that again off of the $928 meaning he'll pay approximately $83 in interest plus we've got to add his expenses at 2387 again bringing his balance back up to 6752 month 13 his income goes in again bringing his balance down to $26 do you know what I'm thinking I'm thinking what you're thinking that wow he has almost paid this debt off that was supposed to have taken him 10 years to pay off right we are at month 13 but let's finish so I'm going to figure the interest off of the high balance meaning he'll pay approximately $62 in interest plus his expenses 2387 bringing him to a balance of 4455 what happens in month 14 what happens in month 14 what happens in month 14 right the income of 4455 is all that is needed for month 14 now he is at a zero balance he will now only pay his 2387 in expenses plus interest of about $41 approximately this is it guys this is it so so he has paid off all of his debt in 14 months 14 months and about $41 in interest left and now he is just back to paying his monthly living expenses when we went over his scenario he was so relieved to know that this 10-year loan that he was in where he just had to have his teeth repaired is going to be paid off in 14 months he was one happy camper and I am so happy for him I am so happy for all of you guys that call me you run through these scenarios with me you get excited when you see that you're not stuck in debt forever you're not 75 stuck with all of this debt wondering how you're going to pay it off in 10 years the joy that I hear in your voices brings absolute joy to me it's not magic it is just math we were just not taught how to use the tools that are at the bank for our use I want you to learn this I want you to take control of your finances today tweak them just a little bit just like he did all he did was transfer these loans into a line using his incom and cash flow to completely knock that out I'm happy for him and I know that you are too thank you so much for joining me today if you have any questions or comments please feel free to leave them below I have services at V fantastic finances.com if you do need me but the videos teach you everything you need to know so you don't need to pay any Guru for their information you've got the information take it and run with it I want to see everyone in financial peace and I know you can do it I know you can and I am so excited to hear your stories I hope you guys have a terrific week I pray for each one of you every day and I am praying that you get this concept as Concrete in your mind change that old mindset and get on to a great and better life because guess what today is the first day of the rest of your life and I want you to have the best life ever thank you again and I will see you in the next video
