College Educator Home Equity | Slide 3: Deposit In-Spend Out

— Slide 3: Deposit Money Into and Take Money Out —

Using Your BLOC Like a Checking Account

Instead of using your checking or savings account to manage and hold money, use your BLOC as your primary money account.

Understand these concepts:

Your BLOC account would look like this if you had $3,500 in credit card debt to pay off:

BLOC Account Starting Credit Line Balance: $60,000
Date	From	To	Advance from BLOC	Payment to BLOC	Balance Owned
July	BLOC	Payoff Credit Card Debt	$3500		$3500
July	Pay	Deposit Paycheck into BLOC		$2500	$1000
July	BLOC	Pay Out Living Expense	$1250		$2250
July	BLOC	Pay Out Living Expense	$1000		$3250

July	Pay	Deposit Paycheck		$2500	$750
July	BLOC	Living Expense	$500		$1250
July	BLOC	Living Expense	$500		$1750
July	BLOC	Living Expense	$750		$2500

Total Ending Month BLOC			$7500	$5,000	$2500

What Does This Show

your starting balance was $3,500
your ending balance was $2,500
you paid off all credit card debt
you never made a schedule payment to the BLOC:
your income represented your monthly payment
you borrowed $7,500 from the BLOC
you will only pay interest on the average daily balance
(in this example, your avg. daily balance for the month approximated around $2000. Interest charges would be about $13-15 per month at 8%).

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