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Tel: (0113) 242 3343 Email:

31 May 2016
Step 5 - Budgeting


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
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  All branches will close for training on the first Wednesday afternoon of each month  •  Duchess of Cornwall supports Credit Unions  Norma Emery, Director of Leeds City Credit Union honoured at a credit union reception hosted by the Duchess of Cornwall
Leeds City Credit Union Tel: (0113) 242 3343 Email: Web: