Using Velocity Banking To Get Out Of Debt Is A Strategy For Idiots. In this video I explain Velocity Banking strategy and why it is garbage. Velocity Banking is a commonly touted personal financial strategy that people most commonly utilize for paying off your house early. It generally involves a HELOC (Home Equity Line Of Credit) and a credit card, where it instructs that you make "chunk" payments on your debt to pay it off faster, banking on the fact that it forces you to use all of your extra discretionary income to pay of your house. The truth is, it will save you money over sticking to your 30-year mortgage. But, that doesn't mean you should do it. There are multiple problems but the biggest problem is that you're literally better off avoiding the HELOC altogether and paying off your as much as you can per month, if that is your goal. In this video I go into the actual math of a 30-year 100k mortgage @ 3.5% scenario. I run the numbers between velocity banking vs. extra payments. As you'll see, I can't do exact numbers because the amount that you're being charged daily interest on in the HELOC fluctuates on a daily/monthly basis. However, the numbers get you close enough to understanding that if you're goal is to pay off your house in 7 years, there is a better way to do it than velocity banking. ►►Learn More ►Is Gold A Good Investment https://youtu.be/PwOJZlREE2M ►How To Not Be An Idiot With Money https://youtu.be/bKba2mBI4gY ►Facebook: https://www.facebook.com/BrettEShoemaker ►Twitter: https://twitter.com/BrettEShoemaker ►Instagram: https://www.instagram.com/bretteshoemaker ►Book I'm reading right now: Tools of Titans https://amzn.to/353f8Wp ►Sign up with Audible and listen to two free books: https://amzn.to/2Z4HoUN #personalfinance #velocitybanking #debt DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments. *All Amazon links are affiliate links which means I may get a commission.