You will then need to know how much money you have available to repay your debt. Make a second list of all your monthly expenses, not including any of your current debt repayments. The idea is to try to schedule all your debt payments with an affordable amount. You may have very little money available, you may have nothing, but however much it is, you need to know. Write down everything you need to spend, with an estimate for each one that doesn't have a fixed repayment, such as food, petrol, bus fares and clothing. These expenses are the bare minimum you need to survive and are more important than consumer debts, which will only be paid out of whatever you have left over, however small an amount that is.
Your monthly expenses list may look something like this:
| Item |
Monthly Expense |
| Mortgage or Rent |
£800 |
| Insurance |
£42 |
| Council Tax |
£90 |
| Food |
£250 |
| School Dinners |
£30 |
| Child Care |
£74 |
| Clothes |
£50 |
| Petrol |
£50 |
| Car Tax and Insurance |
£44 |
| |
|
| Total |
£1430 |
| Monthly Income |
£1730 |
| Balance |
£300 |
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