locity Banking! The five (5) Ws plus the “H.”  They are Who, What, Why, When, Where, and How.  Just like you want to know the 5 Ws of an event you will participate in; the same equal value should be given to velocity banking, particularly when the concept is extremely new to you.

You should ask yourself these six questions about the velocity banking concept before you apply it.

I found velocity banking to be a game changer for my personal finance.  The excitement of the concept brought joy when I realized how fast it could reduce my debt but requires great discipline.


Personal Credit Score


The things you need to know before doing velocity banking begins here!


Velocity is not a product but rather a concept.  It is a way of how implementing this idea into your finance. It is an idea that individuals may choose to use to leverage and pay off debt faster.



It is the ability to leverage other people’s money by using a line of credit, CC, PLOC, BLOC, or HELOC to rapidly pay off the bad debt by canceling interest on your debts faster than the traditional ways.

It is taking everything that debt snowball offers and speeding it up, making it flexible for you.  Velocity Banking:  This method aims to pay off debts faster, increase cash flow, and save money on interest.  To give you financial freedom! What method do I want to use?  Do I want to use debt snowball or velocity banking to eliminate my debt?  It is possible you might use both depending on your financial situation.

When you make a lump sum payment, you are making that lump sum payment to the “principle only.”  Inform your mortgage company that you are making this payment toward the principle only.  Also, understand that you will continue to make your regular monthly payment as well.


 You must know these foundational steps, which are imperative to velocity banking.

      • Your four numbers: Income, Expenses, Debt, and Cash Flow
      • Track Expenses:  For 90 days, track all your expenses and everything you spend money on.  Review your bank account and credit cards. Also, track your income
      • Income:  Look at your last’s year income.
      • Credit Report:  Get a copy of your credit report and know your credit score, the three-digit number
      • W-2:  Make sure it is filled out properly.  You do not want to pay any taxes at the end of the year or receive a refund.  You want to break even.
      • Eliminate Expense:  After you have tracked your money for 90 days, look at what expenses you can do without and reduce
      • Redirect Cashflow:  If you are making extra payments on loans, you want to redirect and use this money to pay off debt if you decide to do velocity banking.
      • Debt Tools:  Understand the debt tools used to implement velocity banking. A personal line of credit (PLOC), credit card (CC), business line of credit (BLOC), and home equity line of credit (HELOC) are tools used to do velocity banking.
      • Mindset: You must have the right mindset.  Understand your why and purpose
      • Discipline:  This concept will not work for you if you are not disciplined and consistent.



Velocity banking occurs when you understand the fundamentals, built-in discipline, and consistency well.  I recommend that you examine, research, and understand the concept so you can make a wise decision before you implement the concept. It may or may not be for you.



When do you use this concept?  You can use this concept at any time, but the individual should not use this concept until he or she thoroughly understands the concept basics.

Now that you thoroughly understand who, what,  and when, you are ready to apply the process.  The three main components needed to begin velocity banking:

      1. Personal Checking (PC): Your money goes into your personal checking account whenever you get paid.  Your PC and debt tool should be at the same bank because of transparency, making it easier to do velocity banking.
      2. Debt Tool:  A line of credit
      3. Debt and Bills: you are working to eliminate debt to save money on interest and build credit and capital.
      4. Credit Card is additional.  You want to use this to pay any bills that can be paid using a credit card without any fees.  This allows you to keep more money in the line of credit.


Velocity banking allows individuals to get rid of bad debt faster than the traditional way while saving money on interest and increasing cash flow.



Velocity banking shows you how your money can work better for you.  How you can leverage and purge debt by using other people’s money, such as the banks.  There are countless people who have debt hanging over their heads and would like to be set free sooner than later.  While debt-snow may eventually lead to being debt-free, it takes longer.

It is crucial that you get answers to these six questions so you can effectively apply the concept without regrets.  This concept is a game changer for personal finance only if you do the necessary homework.  After you have read this article, watch this video on “What To Do Before Velocity Banking.”


 This post is all about  understanding these crucial aspects and taking necessary precautions, beginners can embark on their velocity banking journey with confidence and set themselves up for success in achieving their financial goals.




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