Slide 5: Using the BLOC to Fund Needs

Let's Use Your BLOC Instead to Pay Home Improvement

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

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     $2500
Aug BLOC Pay Contractor $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 (slide3)
  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 financed the windows,
  • which saved you from taking on other debt
  • 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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