5 reasons a line of credit should be a part of your financial strategy

*Before securing a credit line we highly recommend you consult with us about the potential risks. Very few banks provide interest rate protection or understand how to structure credit lines to your advantage.

1- Debt Acceleration.
All kinds of debt can be paid off years sooner using an effective cash flow optimization strategy. Use the LOC as your primary bank account and you can eliminate mortgage and other debt years early without making major changes to your lifestyle or compromising liquidity.

2- Creates Immediate Surplus.
Using a LOC as your primary banking system will Immediately Increase monthly surplus, lower your monthly expenses, and allow you to increase savings allocations now to offset inflation pressures.

3- Lowers interest incrual, protects from rising rates.
Interest accrual is cut by as much as 80% when compared to other borrowing methods such as; conventional mortgages, credit cards, personal loans, other. By applying safe positive leverage, use your equity for your major expenses in the future in lieu of taking out costly loans, creating new payments, or charging up credit cards. A LOC interest rate will be several points lower than if loans you take from banks when rates start to rise. While banks are lending at 15%, you will be borrowing at 9.5%. Make sure your LOC is rate capped before entering into an agreement with a financial institution.

4- Easy access to cash in case of job loss or emergency.
The dollars you pay into the line are liquid even several years down the road. You may never need it but, considering what the future may hold, it would be wise to have easy access to your cash. If something happens and your money is gone or you cannot find a bank to lend to you, you will have your own banking system at your fingertips.

5- Protect the value of your asset.
As interest rates start to move higher home prices could fall by as much as 40-50%. Having access to home equity will enable you to remove the equity and place it in a side account. You separate the equity and ride it out with the cash in your account.

If you are not familiar with HELOC’s and cannot secure a rate protected LOC please contact us for assistance. We will teach you how to properly structure your debt, how to use the LOC to get amazing results and securing the financing.

Ask these questions:
Can you afford the minimum payment at least if the entire limit is borrowed and the interest rate is the highest?
How high can the interest rate go?
Does it have rate cap protection?
What is your cash flow strategy to pay it back?
What happens if you miss a payment?
What if the bank froze your credit?
How many times can you withdraw funds each month and how much can you access?

If you are uncertain, let us give you peace of mind. We can help you:

1Understand HELOC’s and credit lines so you don’t make mistakes.
2. Help you secure a HELOC for up to 90% of your home value with no closing costs and interest rate protection.
3. Show you how you can get amazing results using as your primary account.

START YOUR FREE 10-Minute ANALYSIS to see how you may be able to save hundreds or thousands PER Month!

This article was written by Stephen Vincelli at Kingdom Financial Strategists. KFS is a financial consultancy specializing in helping people secure their lives and overcome obstacles by providing recommendations and strategies that can set them on the path to greater financial security and well being.  More money in your pocket means more money you will have to enrich your family, community and the Kingdom.

KFS is located at 2686 Bayshore Blvd (Alt 19), Dunedin, FL 34698. The company was started by Stephen and Kristin Vincelli.  They started the company because they were tired of seeing people getting taken advantage of by banks and the financial system.  Stephen and Kristin have been in banking and finance business for a combined 15 years and are committed to protecting and serving “the folks.”

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