Velocity banking uses a line of credit to accelerate debt payoff and save on interest. Enter your financial information below to see how much you could save.
Traditional Payoff Method
Payoff Time
-
Total Interest Paid
-
Total Payments
-
Total Cost
-
Velocity Banking Method
Payoff Time
-
Total Interest Paid
-
Total Payments
-
Total Cost
-
Monthly Cash Flow
-
Avg Monthly Payment
-
Savings Comparison
Time Saved
-
Interest Saved
$0
Total Savings
-
Savings Percentage
-
Why Velocity Banking Works Better
Traditional Method Payment Schedule
Month
Payment
Principal
Interest
Balance
Velocity Banking Payment Schedule
Month
Payment
Principal
Interest
Balance
Side-by-Side Comparison
Month
Traditional Payment
Traditional Principal
Traditional Interest
Traditional Balance
Velocity Payment
Velocity Principal
Velocity Interest
Velocity Balance
How Velocity Banking Works
Use your line of credit (HELOC, Personal LOC, or Credit Card) to pay off high-interest debt
Your income goes into the line of credit instead of checking account
Pay all expenses from the line of credit throughout the month
Income timing reduces the average daily balance on the LOC
Lower average daily balance = less interest charged
The saved interest can be used to pay down debt faster
Net cash flow (income - expenses) reduces average balance, saving more on interest
LOC Types: HELOCs typically have lower rates but require home equity. Personal LOCs offer flexibility. Credit cards have higher rates but are widely accessible.
Note: This calculator is for educational purposes. Always consult with a financial advisor before implementing velocity banking strategies.