Pros and Cons of Velocity Banking Concept from Alina Mark's blog

Everyone desires to get out off debt without feeling the pinch on their finances. After all, who doesn’t want to live a debt-free life? But the problem sets in when it comes to implementing the best financial strategy for this to happen. Either way, this should never be the underlying reason behind your constant headaches.

Now more than ever, there are numerous strategies you can leverage to clear off your debt without pushing yourself to the limit. And one of the best way to go about this is by leveraging the velocity bankstrategy. Yes! You’ve heard it right. The velocity banking strategy is the ideal fit for clearing your debts in almost no time.

Keep in mind paying down  your mortgage and other debts under your name has the potential to save you thousands of dollars in interest. It doesn’t stop at that since it can also help you retire earlier and attain the financial independence you badly desire. And implementing the velocity bank concept is a good starting point.

Not to mention the fact that you’ll improve your monthly cash flow and cash availability, which can be harnessed very effectively. Many people who choose who practice the velocity banking concept realize that it allows them to quickly increase their capital pool for future opportunities.

But as appealing as it sounds, there are also downsides that accompany leveraging the velocity banking strategy to pay off your mortgage and other debts. To give you a tip of the iceberg, you may have to contend with adjustable rates for your HELOC or personal line of credit. This is because many banks don’t offer fixed-rate HELOCs.

Furthermore, the velocity banking strategy calls for a fundamental change in priorities and commitment. And this is easy to see since your household money is typically smashed together to be more efficient. This could lead to potential problems or tensions with spousal spending.

All in all, the velocity banking strategy is definitely worth your attention the next time you want to pay off your mortgage or get out of debt in record time.