If you’re struggling to pay a debt, have tried to extend your credit but were rejected, or have tried to negotiate a payment with a creditor or your bank, you may have been told to produce a financial statement or complete an income and expenditure form.
A creditor usually asks you to fill in one of these forms so they have a better understanding of your situation. They also want to ensure that all of your living expenses are accounted for when considering a lower debt repayment or other ways to help you.
Filling in an income and expenditure form is similar to filling in a budget in the following ways:
- You usually need to fill in your income, expenses and debts
- You need to be as accurate as possible to give a true reflection of your situation
- Some expenses will be more of a priority than others
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