Hi! We have 2 other videos about it on our channel that explains what it is, but let us know what other info we should try to talk about! There is definitely a lot to consider when doing velocity banking, we are just here to educate, not recommend options.

@@AscendFinance Could not find them. Anyway a formal definition is needed... And a definition is not a white board example (which for some reason VB proponents tend to favor) of MR Smith who has an income of X and debts of Y with monthly payments As far as I can see VB advocates: Parking all income into a line of credit, a HELOC (or sometimes even a CC) Paying all possible expenses from that account Sending every single dime left after expenses to reduce existing debt By reducing debt (paying extra , over and above monthly loan payments and minimum CC payment), over time interest owed is reduced and there is more cash available, which allows to pay debt even faster. This of course is only cost efficient if the average interest rate (adjusted for risk) of the LOC, HELOC or CC is LOWER than that of the debt being reduced. Otherwise it is more expensive than just paying extra directly to the debt (which is why VB makes no sense for mortgages and other low interest debt) It also assumes one has no better use for the money. I've seen VB proponents get excited about paying down a debt with interest rate of 2.5% which is really, really not a priority when inflation is around 5%