The Debt Management Budget
Your Personal Debt Management Budget
Creating and maintaining a household budget that details all of your income and expenditure will help you to maintain control over your finances. A budget will also help to highlight cash-flow problems before they begin to impact your payments to creditors and start to adversely affect your credit rating.
1 – Write down your financial position using the details below as a guide. It maybe a good idea to buy a small diary to write down everything you spend. You could even withdraw a set amount of money each week and that is your budget – you can not spend any more!
Work out your outgoings that are not paid every month, such as car repairs or vets bills. Think about how much you spend on these in a year. Divide that figure into 12. This will give you a rough figure to add into the following expenditure chart.
2 - Complete this sample Income & Expenditure form. (PRINT OUT THIS PAGE)
3 – List your creditors with the account numbers and balances outstanding. Add the balances up. This gives you the amount of debt you currently owe. The difference between income and expenses is the amount you can offer to all creditors as a token payment.