Using Your Home Equity as a Bank

— Slide 5: Using the BLOC to Fund Needs —
Let's Use Your BLOC Instead to Pay
for the HVAC System

Let's take the same example and use your BLOC to finance the HVAC system. Total cost: $10,000.

Your BLOC account would look like this:

BLOC Account
Starting Credit Line Balance: $60,000

Month		 BLOC Activity
Advances from BLOC
Payments to BLOC
Balance Owned
Aug Beginning Balance     $2500
Aug BLOC

Pay HVAC Vendor

$10,000   $12,500
Aug BLOC Living Expenses $4000   $16,500
Aug Pay Paychecks   $5000 $11,500
Total BLOC   $14,000 $5,000 $11,500
What Does This Show

  Balance Forward from July: - $2,500
  An Advance from your BLOC - $10,000
  Pay Living Expenses - $4,000
  Balance Owned - $16,500
  Deposit Payment + $5,000
  Ending Balance Owned - $11,500

  • your starting balance was $2,500
  • your ending balance was $11,500
  • you purchased the new HVAC system, which saved you from taking on additional debt payments
  • you never made a schedule payment to the BLOC:
    your income represented your monthly payment
  • you borrowed $14,000 from the BLOC
  • you only pay interest on the $11,500 balance, which included a credit card payoff of $3,500


    (in this example, your avg. daily balance for the month would approximate around $13,000, which included the credit card payoff. Interest charges would be about $80-85 per month at 8%.

    Without the credit card payoff charges, your avg. daily balance for the month approximate around $9,000. Interest charges would be about $60 per month at 8%. ).


    let's review this further in the next slide

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