Completing an Income and Expenditure Statement

• An Income and Expenditure Statement is similar to the form you probably completed to get the very debts we all face today. The purpose of the form is twofold:
  a)  For you to calculate how much money you need to live on.

  b)  To indicate how much money you can set aside for your creditors.

• The form has four parts:

1. Income
   Your total income (including any spouse). The statement can be a joint proposal for a couple.

2. Living Costs
   Every expense, but excluding any debts i.e. your weekly rent would go in this part, but not any arrears. A monthly hire purchase payment is not a living expense; the whole balance is a debt.

3. Priority Debts
   See 'Priority Debts' article.

4. Non-priority Debts
   Every other debt not included in part 3 is a non-priority debt (whatever the creditor may tell you).

• Some guides to completing the statement are:

• Use monthly or weekly figures throughout the statement. Do not mix the two.

• Housekeeping:
  A couple £70 per week, single person £40, each child £25.

• Quarterly Bills:
  Add together your last 4 bills (being, one year) then divide by 52 if you are using weekly figures, or divide by 12 if you are using monthly figures.

• Clothing:
  A contentious figure of £5 per week is the maximum amount your creditors are likely to agree to (your creditors expect you to 'pull in the purse strings').

• Telephone:
  Having a telephone for a reason other than health or work will not please some of your creditors (unless they use the telephone to contact you at 9 p.m.). You must keep this figure low and relevant to your current position.

• Finally, do not underestimate your living costs or loose sight of this opportunity. Having to immediately reduce the amount of money paid to your creditors will not leave you any room for manoeuvre at a later date, and may well lead to some creditors taking legal action. The first few months of any arrangement are crucial in determining your creditors support: you have been warned!

INCOME & EXPENDITURE STATEMENT 1. Income (use all monthly or all weekly figures) 3. Priority Debts Wages/Salary   All Arrears Outstanding Balance Payment Offer Wages/Salary (spouse)   Mortgage     Family Credit   Rent     Benefits   Council Tax     Pension   Water Rates     Child Benefit   Gas     Other   Electric     Other   Court Fines     A. Total Income   Maintenance     2. Living Costs Other     Mortgage   Other     Rent   D. Total Priority Debt Payment   Council Tax   C less D = 4. Money for Non-priority Debts   Water Rates   Creditors Name Balance Owed Offer Home Insurance   1.     Life Insurance   2.     Electric   3.     Gas   4.     TV License   5.     Court Fines   6.     Maintenance   7.     Travelling Expenses   8.     Clothing   9.     School & Work Costs   Total Owed     Telephone   Total Payment     Housekeeping     Other   B. Total Living Costs   A less B = C. Money for Creditors   Name Address   Signature Date I/we agree that the above statement is a true record of the facts.

Many thanks to Colin Duguid of Credit to Cash Credit & Debt Management Ltd who is taking the time to provide this information as a service to homeworkers.