Velocity Banking

EssexHebridean

It might be a good idea to see if this one will just naturally die a death down the board - the reasons why it's not one that most DFW's should consider, and why it's not the panacea it's being painted as, are all in place thankfully. 

The point about the DD still being taken is very valid too - if you have a payment for a set amount, that will often be the case. That definitely wouldn't improve your cashflow! 

rlm1234

sparks_2023 said:

One pitfall could be if the credit card company reduces the card limit after you have made the big start of month payment.

Hi, yes I do see your point but you could split it between 2 credit cards for example. I may be wrong but in my experience they tend to reduce the limit if you're not using the card, or if you get a ccj or something like that.  

rlm1234

EssexHebridean said:

rlm1234 said:

EssexHebridean said:

This is a dangerous game on so many levels it’s untrue. For someone who is in debt, using one credit card to “free up cashflow” in order to pay off debts elsewhere is just not a good idea. 

For anyone arriving here in debt, seeing this thread and thinking “that’s a good idea” - it’s not. Please see the “stickied” post at the top of the board for the process you need to follow in order to start clearing your debts. 

Hi,  What happens is that you pay a certain amount onto your card to cover all of your expenses that you are going to pay anyway. By doing this you are reducing the cc balance at the start of the month by a greater amount than you would've done previously, e.g. £1k.  So if your card had a balance of £3k it would go down to £2k. The expenses would usually come out gradually over the month . Whatever the dd was previously (say £200) would already be paid, and in addition the expenses would go down to £800, as you can again minus out the £200.  It's just maths. It is not a substitute for a good budget but it does give you back some control.  It may not be the right thing for everyone but it gives you options, and its working for me.  

I understand what you are advocating. It is not, however, the right thing for the vast majority of those on this board to do. It's also really unusual that we get new arrivals on here quite so vociferously shouting about this sort of thing - which is what Martico was alluding to (very delicately too @Martico - well done! ;-) )

The first step for those in debt is almost always to learn to budget and to step away from credit, There is time once someone is debt free for them to learn to use credit cards "to their advantage" if they wish to do so - indeed, there are plenty of us on here who have been doing exactly that for years, without needing to carry any debt at the same time! 

Oh dear, I thought this forum was about discussion? I can see some of you are very set in your ways and that's totally fine, you do you.  If someone is a spendaholic and can't be trusted around money, this may not work for you. However, if you are someone who has a regular income but are struggling to meet all of your payments each month, it's an option you may want to consider before going down the IVA or bankruptcy route.  

rlm1234

DjangoUnchained said:

i can only think that this would require such absolute control , easily ruined by the odd unexpected expense and before long it would be out of control. Im sure in theory its a great idea but a distraction from the real reason most people are on this forum in the first place.

Hi, thanks for the reply.  I'm doing this myself and honestly you can deal with the odd unexpected expense, we've just been through Christmas for example.  I actually feel I have a lot more control.  Just be very clear about what you need to do and what you're aiming for. 

EssexHebridean

rlm1234 said:

EssexHebridean said:

rlm1234 said:

EssexHebridean said:

This is a dangerous game on so many levels it’s untrue. For someone who is in debt, using one credit card to “free up cashflow” in order to pay off debts elsewhere is just not a good idea. 

For anyone arriving here in debt, seeing this thread and thinking “that’s a good idea” - it’s not. Please see the “stickied” post at the top of the board for the process you need to follow in order to start clearing your debts. 

Hi,  What happens is that you pay a certain amount onto your card to cover all of your expenses that you are going to pay anyway. By doing this you are reducing the cc balance at the start of the month by a greater amount than you would've done previously, e.g. £1k.  So if your card had a balance of £3k it would go down to £2k. The expenses would usually come out gradually over the month . Whatever the dd was previously (say £200) would already be paid, and in addition the expenses would go down to £800, as you can again minus out the £200.  It's just maths. It is not a substitute for a good budget but it does give you back some control.  It may not be the right thing for everyone but it gives you options, and its working for me.  

I understand what you are advocating. It is not, however, the right thing for the vast majority of those on this board to do. It's also really unusual that we get new arrivals on here quite so vociferously shouting about this sort of thing - which is what Martico was alluding to (very delicately too @Martico - well done! ;-) )

The first step for those in debt is almost always to learn to budget and to step away from credit, There is time once someone is debt free for them to learn to use credit cards "to their advantage" if they wish to do so - indeed, there are plenty of us on here who have been doing exactly that for years, without needing to carry any debt at the same time! 

Oh dear, I thought this forum was about discussion? I can see some of you are very set in your ways and that's totally fine, you do you.  If someone is a spendaholic and can't be trusted around money, this may not work for you. However, if you are someone who has a regular income but are struggling to meet all of your payments each month, it's an option you may want to consider before going down the IVA or bankruptcy route.  

It's not about being set in our ways at all - and neither is being in debt about people being "spendaholics who can't be trusted" - that's an incredibly judgemental approach and we ask that people don't take that attitude on here. 

It's about the debt-free process being tried and tested over many years, and a lot of folk on here having the experience to know what works. Maintaining access to credit very often leads to further debt in the longer term, rather than someone becoming debt free and staying that way, which is always the outcome we are hoping they can achieve. 

By the way, it might help you to know that you can answer more than one post at a time by using the "multi-quote" function. It's better to do that than to make multiple posts which can flood the board and give the impression of post-building, particularly in the case of a very new member, as you are. Click quote on the first post you want to reply to, type your reply in the space below the quote box, then hit return twice, use the back arrow to go up a line and then quote the next post and reply in the same way (the back arrow maintains the space for you to type into) you can repeat this pretty much as many times as needed.  HTH! :-) 

CouldntResist

rlm1234 said:

DjangoUnchained said:

i can only think that this would require such absolute control , easily ruined by the odd unexpected expense and before long it would be out of control. Im sure in theory its a great idea but a distraction from the real reason most people are on this forum in the first place.

Hi, thanks for the reply.  I'm doing this myself and honestly you can deal with the odd unexpected expense, we've just been through Christmas for example.  I actually feel I have a lot more control.  Just be very clear about what you need to do and what you're aiming for. 

Christmas is hardly unexpected....

rlm1234

EssexHebridean said:

rlm1234 said:

EssexHebridean said:

rlm1234 said:

EssexHebridean said:

This is a dangerous game on so many levels it’s untrue. For someone who is in debt, using one credit card to “free up cashflow” in order to pay off debts elsewhere is just not a good idea. 

For anyone arriving here in debt, seeing this thread and thinking “that’s a good idea” - it’s not. Please see the “stickied” post at the top of the board for the process you need to follow in order to start clearing your debts. 

Hi,  What happens is that you pay a certain amount onto your card to cover all of your expenses that you are going to pay anyway. By doing this you are reducing the cc balance at the start of the month by a greater amount than you would've done previously, e.g. £1k.  So if your card had a balance of £3k it would go down to £2k. The expenses would usually come out gradually over the month . Whatever the dd was previously (say £200) would already be paid, and in addition the expenses would go down to £800, as you can again minus out the £200.  It's just maths. It is not a substitute for a good budget but it does give you back some control.  It may not be the right thing for everyone but it gives you options, and its working for me.  

I understand what you are advocating. It is not, however, the right thing for the vast majority of those on this board to do. It's also really unusual that we get new arrivals on here quite so vociferously shouting about this sort of thing - which is what Martico was alluding to (very delicately too @Martico - well done! ;-) )

The first step for those in debt is almost always to learn to budget and to step away from credit, There is time once someone is debt free for them to learn to use credit cards "to their advantage" if they wish to do so - indeed, there are plenty of us on here who have been doing exactly that for years, without needing to carry any debt at the same time! 

Oh dear, I thought this forum was about discussion? I can see some of you are very set in your ways and that's totally fine, you do you.  If someone is a spendaholic and can't be trusted around money, this may not work for you. However, if you are someone who has a regular income but are struggling to meet all of your payments each month, it's an option you may want to consider before going down the IVA or bankruptcy route.  

It's not about being set in our ways at all - and neither is being in debt about people being "spendaholics who can't be trusted" - that's an incredibly judgemental approach and we ask that people don't take that attitude on here. 

It's about the debt-free process being tried and tested over many years, and a lot of folk on here having the experience to know what works. Maintaining access to credit very often leads to further debt in the longer term, rather than someone becoming debt free and staying that way, which is always the outcome we are hoping they can achieve. 

By the way, it might help you to know that you can answer more than one post at a time by using the "multi-quote" function. It's better to do that than to make multiple posts which can flood the board and give the impression of post-building, particularly in the case of a very new member, as you are. Click quote on the first post you want to reply to, type your reply in the space below the quote box, then hit return twice, use the back arrow to go up a line and then quote the next post and reply in the same way (the back arrow maintains the space for you to type into) you can repeat this pretty much as many times as needed.  HTH! :-) 

Please don't accuse me of being judgmental, is it wrong to say that some people are spendaholics?  I know I can be.  I said nothing about people who can't be trusted, those are your words.  Don't worry I won't be back on this so called forum, I'll leave it for you and your mates so you can congratulate yourselves on being soooo clever.  BTW, in your VB scenario, you are focusing purely on interest, and that isn't really the point, one of the main things is cashflow.  Perhaps educate yourself a bit more so that you know what you are talking about?

EssexHebridean

CouldntResist said:

rlm1234 said:

DjangoUnchained said:

i can only think that this would require such absolute control , easily ruined by the odd unexpected expense and before long it would be out of control. Im sure in theory its a great idea but a distraction from the real reason most people are on this forum in the first place.

Hi, thanks for the reply.  I'm doing this myself and honestly you can deal with the odd unexpected expense, we've just been through Christmas for example.  I actually feel I have a lot more control.  Just be very clear about what you need to do and what you're aiming for. 

Christmas is hardly unexpected....

That would very much be my view, as well!  Although having said that, just in case....

PUBLIC SERVICE ANNOUNCEMENT:

Christmas 2024 will be held on December 25th. Jollities are expected to be seen breaking out from approximately 1/12/24 to 2/1/25. 

Please budget accordingly.

There we go - sorted.

rlm1234

EssexHebridean said:

It might be a good idea to see if this one will just naturally die a death down the board - the reasons why it's not one that most DFW's should consider, and why it's not the panacea it's being painted as, are all in place thankfully. 

The point about the DD still being taken is very valid too - if you have a payment for a set amount, that will often be the case. That definitely wouldn't improve your cashflow! 

I never said it was a panacea, just another option, that's all

rlm1234

EssexHebridean said:

CouldntResist said:

rlm1234 said:

DjangoUnchained said:

i can only think that this would require such absolute control , easily ruined by the odd unexpected expense and before long it would be out of control. Im sure in theory its a great idea but a distraction from the real reason most people are on this forum in the first place.

Hi, thanks for the reply.  I'm doing this myself and honestly you can deal with the odd unexpected expense, we've just been through Christmas for example.  I actually feel I have a lot more control.  Just be very clear about what you need to do and what you're aiming for. 

Christmas is hardly unexpected....

That would very much be my view, as well!  Although having said that, just in case....

PUBLIC SERVICE ANNOUNCEMENT:

Christmas 2024 will be held on December 25th. Jollities are expected to be seen breaking out from approximately 1/12/24 to 2/1/25. 

Please budget accordingly.

There we go - sorted.

Yes, Christmas is not unexpected, we'll done for pointing that out