Working out your personal budget

Will my creditors think my outgoings are reasonable?

Many of the figures in the Your outgoings - fixed section of Your budget will be based on your regular bills or direct debits and standing orders from your bank account. You might not have much control over some of these amounts. Your creditors know that this is the case and it is important that the amounts you put in your personal budget are based on your true spending.

Some outgoings are more flexible, these are recorded in the Your outgoings - flexible section of Your budget. For example, how much you spend on food, clothing or phone calls will be different depending on your circumstances. You need to think carefully about the amounts that you put in Your budget for outgoings like these.​​

  • Be careful and be realistic

    Do not include figures that are less than you are really spending. If your figures are too low, you will find it hard to keep to any payment arrangement that you agree with your creditors.

  • Be sensible about your spending

    If your creditors do not think that the amounts are reasonable, this will mean they are less likely to agree to reduced payment offers. If you are not sure, contact us for advice.

  • Give reasons if spending is high

    If you think that any of your outgoings might be higher than a typical household, it is important that you tell your creditors the reason why your spending is higher in this area.

​It's your budget

You can put this information in the additional notes section of your budget summary or include it in the letter that you send to creditors with your budget summary.