In order to deal with your debts you need to work out what money you have coming in and going out.  This is important, as it will enable you to assess how much you can afford to repay each of your creditors.

Be realistic: the more accurate you can be, the more able you will be to manage your finances and debt repayments.

1. First, make a list of all money coming in to the household.
2. Second, you should list all your essential weekly/monthly outgoings, such as rent or food - try our budget calculator to help you - click here
3. Try to set out everything either monthly or weekly, even if you pay your bills at different times.  Don't forget irregular payments for things you may not buy very often, like shoes or birthday presents.
   1. To convert weekly figures into monthly figures, multiply by 52 then divide by 12.
   2. To convert monthly figures into weekly figures multiply by 12 then divide by 52.
      

Budget assessment

Once you have listed all your income and essential outgoings you need to assess your overall budget.  Subtract your total outgoings from your total income.  This will show your disposable income, that is, how much money you have left to repay any unsecured creditors - try our budget calculator to help you - click here

What if my expenses are greater than my income?

Look at your outgoings again.  Are there any areas in which you could spend less?  (For example, would public transport be cheaper than running a car?  Could you shop more economically?  Could you save money by going out one evening less a week?

Don't make cutbacks that you cannot realistically live with or stick to - you need to put together an affordable budget that you can keep to, to avoid your financial problems getting worse.  Also look at your income, there may be ways in which you can increase it.

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