Auto Home Equity | Slide 5: BLOC to Fund Needs

— Slide 5: Using the BLOC to Fund Needs —

Let's Use Your BLOC Instead to Finance Your Car

Let's take the same example and use your BLOC to finance the car. Total financing: $27,000.

Your BLOC account would look like this:

BLOC Account Starting Credit Line Balance: $60,000
Date	From	To	Advance from BLOC	Payment to BLOC	Balance Owned
Aug Beginning Balance					$2,500
Aug	BLOC	Finance Auto	$27,000		$29,500
Aug	BLOC	Living Expenses	$4,000		$33,500
Aug	Pay	Paychecks		$5,000	$28,500

Total BLOC			$31,000	$5,000	$28,500

What Does This Show

your starting balance was $2,500
your ending balance was $28,500
you financed an auto purchase of $27,000
you never made a schedule payment to the BLOC:
your income represented your monthly payment
you borrowed $31,000 from the BLOC
you paid into the BLOC $5,000
you only pay interest on the $28,500 balance, which included a credit card payoff of $3,500

(in this example, your avg. daily balance for the month - including your credit card payoff - would approximate around $26,500 with the deposits coming in. Interest charges would be about $177 per month at 8%.

Without the credit card payoff charges, your avg. daily balance for the month with the deposits coming in would approximate around $24,500. Interest charges would be about $163 per month at 8%).

let's review this further in the next slide

SayLending.com