Velocity Banking Strategy

[Richard Heineman]

I'm interested in implementing the velocity banking startegy to pay down debt quickly. However, I don't own a home or any property for that matter. Can I set up an LLC for my business and build up my business credit allowance and utilize it to pay off my personal debts? I would assume that any payment from the business on my personal debt would be considered as a form of income that would be taxed. Other than utilizing my business line of credit, are there any other ways I can implement this strategy without home ownership?

[Dee W.]

Makes perfect sense. You’re just shifting money around using a line of credit to “chunk” payments towards the principal of the debt which eliminates interest. There’s more to it than just “making extra payments.” Once you make extra payments that money is gone as opposed to rebuilding a revolving line of credit to chunk towards the debt again and again.