If you are living in Scotland and applying for a Debt Arrangement Scheme (DAS) you will need to complete a monthly living expenditure statement as part of your application. This is a list of the reasonable living expenses that you incur every month.
It is very important to get this budget right because the total of your expenditures will deducted from your income to calculate your disposable income which is the amount you will then be expected to pay to your creditors each month.
The risk is if you underestimate the amount you spend on any of your regular living expenses or miss some expenses out completely your total budget will be too low. When this is deducted from your income your disposable income figure will be too high making it look as though you can pay more into the Plan than you really can.
BMD Tip: If you agree to payments based on a disposable income figure which is too high your Plan is likely to fail as you will not be able to afford to maintain them.
How to get the Debt Arrangement Scheme Living Expenses Guide
To get an accurate view of which types of living expenses are reasonable and to make sure that you include all allowable expenses in your budget you should get the BeatMyDebt.com living expenses guide.
The guide lists all of the different types of expenditures you should consider when completing your monthly budget together with hints and tips about the budgets which you will have to stay within to ensure that they are acceptable to your creditors.
To get the guide please use the “Download Living Expenses Guide” button on the right (at the bottom of the page if you are using your mobile)
How to use the Debt Arrangement Scheme Living Expenses Guide
When you use the guide to help you put together your living expense budget you may feel that some of the figures seem restrictive. Despite this they are known to be generally accepted by creditors and so if you want your Plan to be agreed you should try stay within the budget figures shown for each category.
Having said that as its name suggests the guide MUST be used for guidance purposes only. Every individual’s situation is different and the actual figures acceptable to your creditors in each category may be higher or lower than those indicated depending on your circumstances.
BMD Tip: If you feel that you need to spend more than the recommended amounts you should always include these figures in your budget. However you must be prepared to justify any additional expenditure and understand that you might be asked to reduce these before your creditors will agree to your Plan.
Once you have put together your living expenses budget you should speak to one of our experts who can help you decide whether or not it is reasonable and if a DAS is a sensible solution for you.
Debt Solutions Living Expenses Guide
If you have a debt problem you will need to complete a living expenses budget. What types of expenditures are allowed in your budget? Where can you get a guide to your allowable living expenses? To find out more please visit http://beatmydebt.com/self-help-guides-resources/living-expenses-guide
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