Cookies help website users perform certain functions. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on the website.

If you wish, you can change your cookie settings at any time.

Read more here

Tel: (0113) 242 3343 Email: services@leedscitycreditunion.co.uk

24 April 2014
Step 5 - Budgeting

Step 5: PAYING YOUR CREDITORS....

Make a list of your non-priority bills.  These will include the items in the following list.

Non-priority creditors.....................................Balance owing
Credit cards £
Store cards
Personal Loans
Bank Overdraft
Catalogues
Utility bills (from an old supplier)
Credit agreements (fridge, cooker furniture etc)
Interest free credit/Buy now pay later

If you have met all your household bills etc but find out that you have nothing left to repay the contractual payment on your monthly credit commitments then you will need to work out an affordable repayment plan, enabling you to repay the debts at a smaller amount over a longer period of time.

Payments will need to be calculated on a ‘pro-rata’ basis. This means that the creditor who has the largest balance would receive the larger payment and the creditor with the smaller balance would receive a smaller payment.

Click here to see how to work out ’pro-rata’ payments.  These payments could then be offered to your creditors. Creditors are more likely to accept a reduced payment a) if you are making reduced payments to your other creditors, b) they are receiving a payment based on an equal proportion of debt/monies available. 

If you have no disposable income left to offer creditors then a small token payment of £1.00 is an acceptable amount. Creditors are not usually happy to accept such a small payment, but as you are offering something then it shows that you accept that you owe the money and are willing to pay but you are unable to offer a higher payment until such time as your circumstances improve. 


  •  Staff Training  April 2nd 2014  •  Staff Training  March 5th 2014  •  New Leeds City Credit Union Partnership  Leeds City Credit Union is pleased to announce our partnership with Sadeh Lok Housing Group.
For more details please see the Sadeh Lok website.
Leeds City Credit Union Tel: (0113) 242 3343 Email: services@leedscitycreditunion.co.uk Web: http://www.leedscitycreditunion.co.uk