Let's take the same example and use your BLOC to finance the HVAC system. Total cost: $10,000.
Use Your BLOC to Pay the HVAC:
where the equity line becomes the banker:
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 HVAC Vendor
$10,000
$12,500
Aug
BLOC
Living Expenses
$4000
$16,500
Aug
Pay
Paycheck
$5000
$11,500
Total BLOC
$14,000
$5,000
$11,500
What Does This Show
Line of Credit Available:
$60,000
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 saving 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%. ).
