Velocity Banking: Definition, Pros and Cons, FAQs [Video]

In the world of personal finance, velocity banking has become increasingly popular among homeowners looking to manage debt and build wealth. But is it the right fit for your long-term financial goals?

Velocity banking is essentially using a low-interest loan to pay off higher-interest debt, taking advantage of interest rates and simple interest calculations.

However, it’s important to recognize the risks involved with taking on more debt to pay off existing debt. This approach may not be suitable for everyone.

Let’s take a closer look at what velocity banking entails, how you can get started with it, and the pros and cons. We’ll also discuss alternative strategies for managing your finances if Velocity banking isn’t the right choice for you.

What Is Velocity Banking?

Velocity Banking is a method for paying off debt faster by using revolving lines of credit, like credit cards or Home Equity Lines of Credit (HELOCs). It involves smartly using …