Working out a budget
When we prepare a budget for you, we start by looking at your income and then your expenditure (this is the money you need to spend to cover your living costs). On the Debt Management Plan (DMP) your budget will include essential payments like rent or mortgage, utility bills, living expenses and leisure. Once your living costs are covered, we’ll work out what you have spare to offer your creditors. Your debt management plan will therefore also include payments to your priority and non-priority debts. These payments will be arranged depending on what you can afford and following negotiations with your creditors. We’ll also give you an estimate of how long it will take to repay your debts. This is what we call your repayment term — please bear in mind this can change if your situation changes.