You now need to prepare a financial statement showing all income received from whatever source and all money going out and to where.

When completing this form use either weekly or monthly figures, however it is advised that you do not mix the two.

• To change weekly figures to monthly, multiply by 52 and then divide by 12.
• To change monthly figures to weekly multiply by 12 and then divide by 52.

Annual payments such as TV licence, road tax, insurance premiums etc. should be divided by 12 to give the monthly amount or by 52 for the weekly figure.

Also allow for irregular, and often unexpected, expenditure such as car and house maintenance, repairs and replacements. When doing this it is advised you divide these out/level the expense out throughout the year.

It is important to take everything into account, but don't include payments for arrears or secondary creditors at this stage because you need to know the total money you have available (if any is left) to make offers to them.

Before finalising your statement you must review your income to see if it can be increased (see STEP 4) and consider your expenditure to deduce if any savings can be made (see STEP 5 ).

Your financial statement will go through ongoing revisions as it needs to reflect changes in your income and expenditure and to incorporate subsequent agreements for payments to be made to your creditors.

 
Income / Money In

• Wages
• Part-time job
• Child benefit
• Job Seeker's Allowance
• Disability and Sickness Benefit
• Pension
• Child Maintenance paid to you
• Rent or money from lodgers
• Other
• Total Household Income

Expenditure / Money Out

PRIORITIES

• Mortgage/Rent/Board
• 2nd Mortgage/Secured Loan
• Endowment Policy
• Child Maintenance Paid by You
• Council Tax
• Water Charges
• Electricity
• Gas
• Service Charges/Ground Rent
• Court Fines/County Court Judgments
• Vehicle Finance/Hire Purchase
• Television License
• Self Employed
• Income Tax
• National insurance
• VAT

LIVING COSTS

• Food and Housekeeping
• School Meals/Meals at Work
• Clothing/Footwear
• Vehicle Running Costs
• Petrol/Diesel
• Bus, Train,etc expenses
• Telephone
• TV, Sky, Video, etc Rentals
• Prescriptions/Dentist/Optician
• Childminder/Nursery
• School Costs
• Cigarettes/Alcohol
• Life Insurance/Pension/Investments
• Building/Contents Insurance
• Other

Add up the money coming in and then subtract the money going out to give an end figure.

This guide is for information purposes only and does not constitute financial advice.