Leveraging Money Velocity

Many business owners underestimate the power of money velocity. They keep their hard-earned cash sitting idle in checking or savings accounts, missing out on opportunities to grow their wealth and reduce debt. Instead, business owners can use The Shred Method, a strategy developed by Adam Carroll that utilizes existing financial tools to dramatically cut mortgage payments and interest.


The Litmus Test: How Much are You Paying in Interest?

If you haven’t lately, take a look at your recent loan or mortgage statements. How much of your monthly payment goes towards the actual loan principal, and how much goes towards interest? Often, business owners are surprised to discover a significant portion goes solely to interest, and banks don’t want you to know that. 


The Shred Method: A Debt-Crushing Strategy

The Shred Method isn’t about drastic lifestyle changes or cutting back on essentials. Instead, it focuses on optimizing your existing cash flow. Here’s a breakdown of the core principles:

  • Funneling Income Through a Line of Credit: Rather than depositing your income directly into a checking account, The Shred Method redirects it to a line of credit, such as a Business Line of Credit (BLOC), Personal Line of Credit (PLOC), or a Home Equity Line of Credit (HELOC). HELOCs are typically preferred due to their lower interest rates tied to your home’s equity.

  • Strategic Lump Sum Payments: The Shred Method leverages a software-powered algorithm. This algorithm analyzes your income, expenses, and the timing of each to determine the optimal times for making lump sum payments from your line of credit towards your debt. The focus here is on amortized debts like mortgages, business loans, and EIDL loans.

  • Accelerated Amortization and Reduced Interest: Each lump sum payment you make through The Shred Method accelerates the amortization schedule of your debt. This translates to shaving tens of thousands of dollars off the total interest you’d otherwise pay over the life of the loan. The method aims to significantly reduce your mortgage term, potentially from a 30-year fixed-rate loan down to as low as 3-7 years.

To prove that it works, Adam shredded his own mortgage payment from $1,600 per month to only $334 per month. And after 24 months, he was able to reduce his mortgage balance to under $100,000 from an original balance of $300,000. 


Is The Shred Method Right for You?

While The Shred Method offers significant benefits, it’s important to consider its suitability for your financial situation. Here are some factors to weigh:

  • Existing Debt: The Shred Method is most effective for those with high-interest, amortized debt like mortgages and business loans.
  • Financial Discipline: The strategy requires discipline in maintaining your regular income flow and adhering to the recommended payment schedules.
  • Access to a Line of Credit: Having access to a HELOC or other line of credit is a prerequisite for using The Shred Method.



The Shred Method offers a unique approach to debt repayment, particularly for mortgages. By optimizing cash flow and leveraging a line of credit, business owners can potentially save tens of thousands of dollars in interest and significantly reduce their mortgage payments. If you’re a business owner burdened by high-interest debt, The Shred Method may be a strategy worth exploring.

To dig deeper into how business owners can utilize The Shred Method to pay down your mortgage or other amortized debt, tune in to this episode of The Progressive Agency Podcast to hear more from our guest, Adam Carroll.


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