Debt can feel like a never-ending trap, especially with rising inflation and maxed-out credit cards draining financial freedom. Many find themselves stuck in a cycle of high interest rates, minimum payments, and growing stress. But breaking free is possible. In this episode, we’ll explore practical strategies for crushing debt with cofounder and CEO of Truth in Equity Bill Westrom.
Bill is the mind behind Credit Line Banking, a revolutionary financial strategy designed to help American consumers regain control over finances and build true independence. Whether you're overwhelmed by credit card balances or looking for a fresh start, our podcast episode will give practical strategies to crush debt and build real financial independence—insights that are both eye-opening and empowering. I encourage readers to do their own research as this is not meant to give financial advice, but it sheds the light on a method of gaining financial freedom from debt.
Debt and Financial Freedom Strategies
Financial freedom means having the resources and flexibility to make choices without being constrained by financial obligations. It's about eliminating debt, increasing cash flow, and gaining control over your money instead of letting it control you. It is especially valuable to gain this type of freedom at midcareer or halftime of life to open additional options for a purposeful next chapter.
According to Westrom, financial freedom isn’t just a pipe dream. It can be a reality with an intentional strategy. The journey starts with understanding your money, tracking expenses, and changing your relationship with debt. The goal isn't just to eliminate what you owe, but to build a life where your finances support your freedom and not your stress.
Westrom advocates for creating a personalized cash flow plan and using debt strategically—not as a trap, but as a tool. The first step? Shifting your mindset from one of survival to one of purpose. From there, you can use structure and discipline to chart a path toward independence.
Managing Debt and Fiscal Responsibility
The reality is sobering: debt is on the rise across the United States. According to the Federal Reserve Bank of New York, total household debt reached a record high of $18.20 trillion the first quarter of 2025.* Mortgage balances alone grew to $12.80 trillion, with interest rates climbing to their highest levels in over two decades, averaging 6.8% on a 30-year fixed loan.
Credit card debt has also surged, surpassing $1 trillion, with average interest rates hovering above 20%. This financial climate makes fiscal responsibility more important than ever. Being responsible with your debt doesn’t just mean making minimum payments—it means developing a plan to pay it down faster and more efficiently.
Ignoring debt only compounds the problem. Taking ownership starts with knowing exactly what you owe, the interest rates involved, and how to prioritize which debts to tackle first.
Principle of Using Credit Line Banking for Debt
Credit line banking is a concept that uses revolving credit as a tool for debt elimination. Here’s how it works: Instead of throwing small payments at multiple debts over a long period, you consolidate your approach using a single line of credit. In the podcast interview, Westrom illustrates this with a powerful example: A $25,000 line of credit, when used strategically, can eliminate $500,000 worth of debt in just 5 to 8 years.
How? By applying the line of credit to your highest-interest or most burdensome debt, then aggressively paying down that line using your income. You rotate funds smartly, reducing interest costs and cutting years off your repayment schedule.
Also discussed is a "Bill Payday" — a designated time when all payments are processed and scheduled in sync with your income. This makes financial planning simpler, more consistent, and more powerful.
This approach shifts the way we think about borrowing. It's no longer about being at the mercy of creditors—it's about learning to move money intelligently and take control of the banking relationship. Get FREE Goal Setting Worksheets
Credit Options and Financial Education
Westrom emphasizes that most people don’t fail financially because they’re lazy or irresponsible. They fail because they don’t understand the options available to them.
He outlines three primary tools for accessing credit:
- Home Equity Lines of Credit (HELOCs): Often the lowest-interest option, HELOCs allow homeowners to borrow against the equity in their homes with flexible repayment terms.
- Unsecured Lines of Credit: Offered by banks without collateral, these carry higher rates than HELOCs but lower than most credit cards.
- Credit Cards: Widely accessible but often the most expensive form of borrowing, with interest rates commonly exceeding 20%.
Understanding these tools allows consumers to make informed decisions. For instance, leveraging a HELOC to eliminate high-interest credit card debt could save thousands of dollars in interest over time.
Beyond tools, financial education and transparency is incredibly important— especially within families. Discussed was the advice for parents to show their kids how money really works. Let them see your budget. Let them understand how borrowing, interest, and repayments function in real life. Breaking the cycle of financial illiteracy starts with a willingness to teach.
Application: How We Can Apply This
The strategies mentioned in this article aren’t just for high-income earners or financial experts. They’re for everyday people who want a better future. It’s important to do your own homework for your financial situation, but here are a few actionable steps inspired by the podcast conversation:
- Assess Your Current Debt: Write down every debt you owe—amount, interest rate, and minimum monthly payment. Knowledge is power. Also, keep track of your yearly expenses. You may be surprised at how they add up in certain areas.
- Establish a "Bill Payday": Pick one or two days a month where all your bills are paid and transactions processed. This simplifies your cash flow and prevents missed payments.
- Explore a Line of Credit: If you own a home, research HELOC options. If not, talk to your bank about unsecured lines. Compare rates and terms. Get financial help if needed.
- Shift Payments Strategically: Use any line of credit as a tool to pay off higher-interest debt, then aggressively pay down the line itself. Getting out from underneath high interest credit card balances brings financial freedom and lowers stress.
- Educate Your Family: Have open conversations about money with your kids or grandkids. Teach them what you wish you had learned earlier.
Debt doesn’t have to define your story. With education, discipline, and the right tools, you can rewrite your financial future. Freedom is possible—but it requires action and implementing a solid plan. The path to financial independence isn’t about luck. It’s about strategy, and the time to begin is now.
* https://www.newyorkfed.org/microeconomics/hhdc.html
Additional Resources
Master Your Debt: Slash Your Monthly Payments and Become Debt Free by Jordan Goodman & Bill Westrom
Think and Grow Rich: Revised for 21st Century by Napoleon Hill
Quarterly Reviews and Evaluation article by Deborah Johnson
Financial Planning for the New Year article by Deborah Johnson
- about bill westrom
Bill Westrom is co-founder and CEO of TruthInEquity.com and the mind behind Credit Line Banking (CLB©), a revolutionary financial strategy designed to empower American consumers. With over 18 years of experience transforming how people approach debt and wealth-building, Bill has developed a revolutionary strategy that helps American families save, invest, and pay off debt up to four times faster than traditional methods. His mission is to level the financial playing field, bringing the same leveraging techniques used by banks to everyday Americans.
Financial Freedom is about eliminating debt, increasing cash flow, and gaining control over your money instead of letting it control you.
deborah johnson
Thought Leader, Keynote Speaker, Author
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