Making a budget offer
Lesson 5 of 12 in our free Debt & Getting Help guide: a 5-minute money game with the key points below.
Shown for England. Some rules here are different in Scotland, Wales and Northern Ireland: the lesson shows your nation's version.
Reading is cool. Playing is cooler.
This lesson is a 5-minute game. Free, no sign-up needed.
The story so far
Nana: Before offering anyone a penny, write down everything coming in and going out. That's your income and expenditure.
Chip: What's left after essentials and priority debts is your 'available income'. That's what you can share between non-priority creditors.
Dex: Or just ignore it all and go travelling. Reset arc.
Nana: Debts travel too, Dex.
Questions you'll answer
Mo has £60 a month left for non-priority debts. He owes £1,200 on a credit card and £600 on an overdraft. Shared fairly by size (pro rata), how much goes to the card?
Total debt £1,800. Card is £1,200 ÷ £1,800 = two thirds. Two thirds of £60 = £40 to the card, £20 to the overdraft.
Quick facts
- Food shopping → Essential living cost. You need to eat — essentials go in first.
- Council tax arrears payment → Priority debt. Priority — serious consequences if missed.
- Travel to work → Essential living cost. Keeps the income coming. Essential.
- Catalogue account → Non-priority debt. Non-priority — gets a share of what's left.
- Overdraft → Non-priority debt. Non-priority.
- Fact: “If you have nothing left after essentials, you can sometimes offer a token payment like £1 a month.” — Token payments show willingness while things are tight. A debt adviser can help with this.
- Myth: “You should leave no money for food so creditors get more.” — Essentials come first. A plan you can't live on won't last.
- Fact: “Debt advisers use a standard format for budgets that creditors recognise.” — Advisers use a standard financial statement so creditors can trust the numbers.