How to DeBank Yourself: Be Your Own Bank Instead of Waiting for Loan Approval

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Most of us have had the same experience at a bank. You walk in, they want to sell you a checking account, a CD, a car loan — and the second you ask for something they don't want to give you, the answer is no. In this video I explain what "debanking" means and why I think you should at least understand this new financial model, whether or not you ever use it.

I'm not a financial advisor, and this is informational only. But I do think a small group of people is already using these tools, and I'd hate for everyone else to wake up years from now and realize they missed it.

What you'll learn

• What "debanking" and "being your own bank" actually mean
• Why banks say no — and how to make their answer matter less
• How an asset-backed loan differs from a car loan or a credit card
• Why some of these loans have no required monthly payment — and what the catch is
• What a liquidation threshold is and why it's the whole risk

Why I stopped liking banks

I've been frustrated with banks for years. Tiny interest rates on your savings. A car loan or a home loan, sure. But ask about a business loan and they don't want to hear it. Then you try to deposit or withdraw your own money and there are forms to fill out so everybody knows what you're doing. In my opinion the banking system as we've known it is dying, and the dollar is becoming mostly transactional. That's why I do a show every Friday on holding assets instead of dollars.

What debanking means

Debanking means you stop depending on a bank to decide your financial life. Instead of applying, getting income verified, explaining what your job is and what you want the money for, you use assets you already own as collateral and borrow against them. The lender doesn't care whether it's for a car, a home improvement, or a business. The asset is the approval.

I've done a version of this myself. I'm a patent attorney and a programmer, and I funded a business with over $1 million in credit card spending, earning millions of miles and points along the way. I didn't wait for a bank to approve me. I built my own system for access to capital. Credit cards are one way. Asset-backed borrowing is another.

The clip: a loan with no required payment

In the video I play a clip explaining the structure. A traditional car loan payment is principal plus interest, every month, no exceptions. A margin loan through a stock broker is usually interest only — you pay the interest and return the principal when you can. The model I'm describing goes one step further: you don't have to pay principal and you don't have to pay interest on a set schedule. The interest accrues and gets added to what you owe.

So if you borrow and the interest for the month is small, you simply owe that much more next month. Two months go by, the balance is slightly higher. You can pay $500 this month. You can pay nothing next month. You can pay again the month after. You control the payments.

The catch: the liquidation threshold

All of that only holds as long as the collateral stays steady or goes up. Every one of these arrangements has a threshold — if the assets drop far enough in value, the lender can liquidate. That's when you suddenly need to pay. And because interest keeps accruing, the balance grows. Eventually it adds up to more than what you collateralized unless you keep adding collateral or start paying it back. You'll want to pay it back. You just get to decide when.

Why I'm telling you this

I'm not saying run out and do it. I've said the same thing about velocity banking — it has a purpose, but in my opinion it's often not the best one, and I've explained why in other videos. What matters here is understanding what's changing. The government doesn't care about you. Banks don't care about you. It's up to you to take control of your financial future, because real freedom is financial freedom.

Key steps

1. Get honest about your current debt first. Run your balances through the credit card payoff calculator so you know what you're actually paying in interest.
2. Understand the difference between a principal-and-interest loan, an interest-only margin loan, and an accruing asset-backed loan.
3. Learn what a liquidation threshold is for any product you're considering, and what price drop triggers it.
4. Build assets you could eventually borrow against instead of holding everything in cash — see why cash alone loses.
5. In the meantime, use the tools you already have. A balance transfer break-even run is free and immediate.
6. Keep score. The Debt-Freedom Tracker shows whether you're actually moving.

FAQ

Does "being your own bank" mean I can stop paying my debts?

No. It means you control the timing of payments on certain asset-backed loans instead of a bank setting them. The interest still accrues and the balance still grows. You pay it back eventually — you just choose when.

Is this better than paying off my credit cards?

For most people reading this, no. High-interest credit card debt is the most expensive money in your life, and eliminating it is a guaranteed return. Start with the get out of debt course and the free calculators before you think about borrowing against anything.

What's the main risk?

The collateral. Everything in this model depends on the assets staying steady or rising. If they fall past the liquidation threshold, the lender can sell them, and the flexibility disappears exactly when you need it most.