Velocity Banking: Using a Credit Card (Step-by-Step Guide)

Velocity Banking: Using a Credit Card

Velocity Banking with a credit card is a financial strategy that involves paying all of one's expenses through their credit card to accelerate debt repayment. By paying expenses through their credit card, individuals can lower their average daily balance which in turn will lower their monthly interest owed. By virtue of paying a lower interest rate, individuals can potentially pay off their credit cards faster.

In this video, we are going to explain how Velocity Banking with a credit card works (step-by-step guide) and cover some of the pros and cons.

Please note that this video is for educational and entertainment purposes only and should not be considered financial advice.

[cocacolafiesta]

As a visual learner your video is very helpful. This is my first month on VB and at times it’s clear then it becomes muddy at again. You explained it quite well. Thank you!

[mirainoivuyo]

Thank you for showing the math regarding the interest. I hate the idea of using a credit card if there's any hanging balance past the due date because it just means that there's interest accrued on that purchase, but to illustrate that the average daily balance does go down by putting the cash flow toward the credit card, it makes a little more sense to me. Thankfully, I'm not in any CC debt and currently don't pay interest when I use my CCs, but I'm always interested in seeing ways that people can try to pay down debt. We are so programmed to compartmentalize our money that we forget about money's fungibility and then we make decisions that turn out to be less than optimal. You have my sub 😃

[thenappyewe]

THANK YOU SO MUCH! This video made velocity banker easier to understand for me. Be blessed.

[inertiaforce]

You have made a math error. If her income is $4, 000 and her mortgage is $1, 250, that leaves her with $2, 750 per month in income, not $2, 850 as you have indicated in your video.

[lorealdrayton]

Great, simple easy presentation...new subbie! #eliminatedebt

[KRod]

When should I make the payment on the credit card, a day before the due date a week? does it makes a difference?

[zedmak]

Bilt card allows u to pay rent with cc

[casandrawheeler]

I’m so confused! Why not just pay the extra $500 with the mortgage payment and just budget $500 less for your expenses? I’m so lost

[tifffteal]

But most people can't put their whole month of income on the credit card at once! What if you get paid weekly?? How do you do this then??

[confusedzentradi]

How can I use this strategy if I get paid $2, 800 per month, but $1, 400 on the 1st and the other $1, 400 on the 15th?

[frhqrun]

but you cant pay credit cards with credit cards, so how do you do this?

[frederickmcmillian]

Will this work on a credit card with a zero balance