Auto Maker Home Equity | Slide 5: BLOC to Fund Needs

— Slide 5: Using the BLOC to Fund Needs —

Let's Use Your BLOC Instead to Pay for the Truck

Let's take the same example and use your BLOC to finance the truck purchase. 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 Dealer	$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

your starting balance was $2,500
your ending balance was $11,500
you financed the truck,
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