You will use the BLOC as your personal money account to manage all income and expenses.
You will deposit into the account:
· all income payments · all bonuses · all capital gains not reinvested · all cash payments · all other income
Likewise, you will use your BLOC to pay:
· your mortgage payment · your insurance · your credit card payments · your living expenses · all other expenses
The BLOC will Maximize Your Money Position
Your BLOC will take your discretionary income (total income minus expenses) and use the proceeds to pay down your debt at minimum interest cost.
You will never make a payment to your BLOC since your income deposits will be your payment. And since HELOCs are based on simply interest, these deposits will force adjustments to your equity line balance ensuring you minimal interest charges.