The mother-of-three was told that she and husband Matt had already spent $98,000 of their $250,000 budget.
Afterwards, the contestant said she felt "humiliated" and "made a fool of" especially after fellow contestant Mel was awarded $5,000 for her great money management skills.
"I immediately felt very uncomfortable," El'ise said.
"I was absolutely gobsmacked."
Fans of The Block sympathised with El'ise - who could be seen sobbing after her humiliating moment.
"She’s crying because of the way that 'friendly chat' ended. I’d be crying too. It’s humiliating. You don’t kick a person while they are down,’ said one fan on Twitter.
"I’d be crying too. It’s humiliating. You don’t kick a person while they are down #theblock,” said another.
El'ise confessed that she felt "put down" after she was forced to watch her rival's meeting.
"I just don't like to be made a fool of," El'ise said through tears.
"I think we're actually doing a good job, in terms of trades and everything when you're put in a situation like that where you're put down, it's not nice."
The Block continues 7.30pm Wednesday on Channel 9.