Pay Off Debt With A HELOC -- Case Study (2023)

Have you ever heard of Velocity Banking? In short, it is a process that involves tapping into the lazy equity in your home and leveraging that equity to pay off your debts faster and invest in assets. This process is done by open up a Home Equity Line of Credit, or HELOC with a credit union or bank. This allows you to make the equity in your home accessible to pay off your debt faster and invest in assets. In this video I share a case study of how to use a HELOC to pay off debt in only 3 years.

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[couplescreatecashflow]

I just launched a new course, "How to Get the Right HELOC for Velocity Banking". Check it out at the link below:

[veryinteresting]

Thank you for educating and truly caring. Your videos are excellent.

[simplelifeforyou]

This is more educating than any video I have seen and I have been looking at these for over 5 years. I'm ready to do this. How can I find out you help me?

[ask_why]

Our HELOC had a fixed rate, but that was with the local credit union.

[Kertothemit]

The idea of this is cool. Unfortunately a lot of the people who would try this are already struggling to manage their budget. This can get out of hand really fast and end up in way more debt than before.

If you choose to go this route please be careful. Maybe try budgeting properly first.

[Tarek-LearnUnlearn]

Great stuff here, Question: I have a business HELOC that I can tap into through my banker. But it flows through the biz checking account. So when you say deposit income into the heloc, basically I deposit it into the biz checking account and then make a payment to the principal of my heloc of my checking? Because there isn’t a way for me to go straight into the heloc, it only offers to make a payment of interest or principle online.

[PastorMelquicedec]

Shared your content to my family members
I have a heloc and been wanting to learn how to do this to help my family do this, but its so complex do you do coaching?

[thomasxxxxxx]

Unless I missed it, I see no interest rate for the HELOC. HELOCs come with interest rates that are higher than mortgages plus there are fees
All in all the HELOC approach is risky; complex and generally more expensive than paying down loans directly. Plus it requires using ALL the available income left after the expenses
In this example the couple should kill the CC debt asap using their cash flow (it will take about 8 months) and then attack the student debt. Mortgage at 3% and car at 4% are such low interests that they better be left alone

[greggpurviance]

Always dumb to move unsecured debt to secured. Complex mess that rarely works out in the real world

[PastorMelquicedec]

Hi thanks for the content

Question: the chunk should be the cash flow or the 66% or is it cash flow and the 66%? Basically do i need one of the tow or both

[travisjames]

I have a question. So if i am putting all my paycheck into the heloc, what am i paying my other bills with at are not part of the chunk? If it is a cc that is paying that stuff. What are you using to pay that CC?

[goodcommunicator]

HELOC equals risk of foreclosure people.

[ThatGuy-fxyc]

Lol! A HELOC- the credit card of the mortgage world! You didn’t pay off your debt, you moved it. Ridiculous. Follow Dave Ramsey.

[dww]

Have a heloc. This is complex I dont quite get it. But spunds g99d.

[Conqistador]

So I we pay the credit card with the heloc