Velocity Banking: The final debt acceleration strategy
What is Velocity Banking?
Velocity banking is defined as the utilizing of financial and banking products that manage and enhance cash flow that abruptly develops financial security by eradicating, lessening or decreasing interest. Velocity banking is a more well-organized way to utilize your present income.
What is the purpose of Velocity Banking?
Velocity banking acts as a different perspective to do banking.
Receive a checking account and a saving account. Place your paycheck in the checking account and save Deposit your paycheck in the checking account and save as much as you can with a savings account. With velocity banking, you have ingress to the same products as before but you are going to utilize them in a different manner.
What are the Benefits of Velocity Banking?
Following are the benefits of velocity banking:
1. Velocity banking decreases debt swiftly. Indeed, very rapidly.
You take a 30-year mortgage and paying it off in 5-7 years in an adequate manner. Some do better way and some do in the worst manner. But the reality is that it quickly lessens debt.
2. Velocity banking advances the principal paid. By this, definitely, you are hurling more money to the principle, thus, canceling out the interest. Now, just keep this thing in mind that this is not a pay by it means extra payment type strategy, for example, paying on the 1st and 15th, or paying additional payments.
3. Velocity banking enhances monthly cash flow. You will free up cash, that is, your debt obligations will decrease.
4. Velocity banking increases cash availability. You will have retrieval to more cash. This is critical for developing an emergency fund. Dissimilar an amortized loan, when you put money into the loan you can’t take it back out. Velocity banking gives you permission to have access to this kind of funds.
5. Velocity banking develops financial autonomous. That is, obviously, when you eradicate your debt or know how to utilize debt to grow wealth. You become wealthier, thus, clearing the path to purchase cash to develop financial independence. However, you can also utilize it to build wealth and assets.
6. Velocity banking decreases stress. Verily, when there is more money in the bank account and your debt is either eradicated or in control, your stress gets lessen.
The Strategy of Velocity Banking
The velocity banking strategy is actually quite uncomplicated. Firstly, you are going to open up a line of credit and then you are going to have all your income go straight into that account. From there, out of the new line of credit account, you are going to transfer bad debt accounts to the line of credit. All your expenditures are going to be paid, for example, food, household items, babysitter, car note, mortgage, and many other In other words, you are going to turn your line of credit into your checking account.
Conclusion
Velocity banking enhances your cash flow, purchases and helps you pay off debts in the fraction of the time. As the old platitude says, “CASH IS KING.” Comprehending and controlling the cash flow is the important component to velocity banking. Velocity banking can be considered of as a tool to help people to pay off their mortgage as quickly as possible if they have a hard time-saving money or have nothing saved in the first place. If you have a lot of money in savings, you could still use velocity banking to put your money to work, but you will end up paying interest fees when you could circumvent them. Velocity banking is a magnificent way to pay off a mortgage.