Debt Management can help control your finances
Contact us
0800 044 5407
Calls from mobiles are now free

Debt Management Living Expenses Guide

Debt Management Living Expenses Guide

Getting your living expenses budget right is vital when starting a Debt Management Plan (DMP). It is key to working out how much you can pay into your Plan each month.

Want help with a Debt Management Plan? Give us a call (0800 044 5407) or complete the form below to speak to one of our experts

How to complete a Debt Management Living Expenses budget

When you are putting together your Debt Management Living Expenses budget you must ensure you list all the items you spend money on each month.

Many of your expenses such as your rent or mortgage are easily identifiable because they are fixed. Others will be more difficult to quantify because they are variable such as food and car maintenance.

For variable expenditures you need to ensure you include an amount sufficient for your needs. However it must also be acceptable to your creditors.

Get a free copy of our Debt Management Living Expenses Guide

Our Living Expenses Guide gives a comprehensive list of the expenses you should include in your monthly budget. It also gives recommendations regarding the amounts that creditors will accept in each category.

The Guide gives hints and tips about the limits you should stay within to ensure your expenses are acceptable to your creditors.

The guide is free. To get a copy click the “Download Living Expenses Guide” button at the top right of this page (or at the bottom if you are using your mobile).

How to use the Living Expenses Guide

The Guide must be used for guidance purposes only. This is because there is no “one fits all” living expenditure budget. It is important that the items and amounts you include are sufficient for your needs.

Many of your expenses will be fixed amounts such as your rent or council tax. These cannot be changed in the short or even medium term. However other expenses such as your food budget are variable. These will differ from person to person and family to family.

When you are putting your budget together it is important to include expenditure amounts which are reasonable. If they are too high this will reduce your Plan payments and extend the time it takes you to pay your debt.

Your creditors will assess your expenses and decide if you are making enough effort to repay them as much as you can. If they feel any of your expenses are unreasonably high they could reject your payment proposal.

Do not use Living Expenses that are too low

You must make sure that the amounts you include in your expenses budget are sustainable. You should not agree Debt Management payments that are artificially high because your expenses figures are too low.

If you start a Plan based on payments that are too high you are likely to struggle to maintain them. As a result the Plan will probably fail.

If your creditors will not agree your reduced payments because they think they are too low you should speak to us. You may need to consider an alternative debt solution.

Arrange a call with a DMP Expert

    Need help to start a Debt Management Plan?

    Privacy Policy
    Your information will be held in strictest confidence and used to contact you by our internal team only. We will never share your details with any third party without your permission.