Does It Really Work

When I first learned about Velocity Banking I was intrigued to say the least. Could I really restructure my cash flow to knock out high-interest debt—without making more money or sacrificing my lifestyle?

Turns out, yes. And in this post, I’ll walk you through exactly how one of my clients are doing using real numbers, a flexible line of credit, and one powerful strategy.

📊 Financial Snapshot

Here’s where she started:

• Net income: $3,400/month (paid bi-weekly)
• Living expenses: $1,181/month (not including debt)
• Debt minimum payments: $1,242.53/month
• Remaining cash flow: $976.47/month
• Tool: Personal Line of Credit (PLOC) with $2,964.96 balance @ 15.5%, flexible repayment

💳 Debts

• Amazon Store Card: $1,096 @ 29.99% ($38/mo)
• Capital One: $234.25 @ 27.15% ($25/mo)
• Sapphire: $9,467.12 @ 27.24% ($314/mo)
• Discover: $6,433.92 @ 27.24% ($164/mo)
• Numerica Visa: $2,500 @ 15.49% ($63/mo)
• Nissan Auto Loan: $30,115.86 @ 7.49% ($588.53/mo)

💥 The Velocity Banking Game Plan

Step 1: Eliminate High-Interest Small Balances First

In July, she’ll pull $1,330.25 from her PLOC to pay off Amazon and Capital One completely. This frees up $63/month in minimum payments and shifts the balance to the PLOC, which she can aggressively pay down using her cash flow.

Step 2: Use PLOC as a Sweep Account

Route her bi-weekly paychecks directly into the PLOC, temporarily bringing down the balance. Then sweep what she needs for expenses back into checking. This “velocity” technique minimizes her average daily balance and interest charges.

Step 3: Repeat and Grow

Once that $1,330.25 is paid off (in just over a month using her $1,039/month payoff ability), she repeats the process—next chunking down Discover, then Sapphire.

📈 Results: Growing Cash Flow, Shrinking Debt

Each time she eliminates a debt, she gains back its minimum payment and folds that into the next PLOC payoff. That turns $976/month into over $1,600/month in a few cycles. Within 12 months, she’ll be on track to eliminate most of the credit card debt—and eventually tackle the auto loan too.

📐 Bonus: What she Saved

Using the Velocity Banking Factor formula, she can calculate how much interest she avoids. If Discover was going to cost $9,000 in interest, but she pays only $1,800 via PLOC, that’s just 20% of the original interest cost. That’s real money saved.

💡 Final Thoughts

Velocity Banking isn’t magic—it’s just smart math and consistent cash flow discipline. If you have a line of credit, predictable income, and even a few hundred dollars of monthly cash flow, you can make this work. Even if you don't have a line of credit you can make it work

Want help building your own custom plan? I’d love to show you how.