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England and Wales > Your Budget > Household Budget > Stage 6: Money for Creditors

Stage 6: Money for Creditors

Subsections : Business Budget |Household Budget |Interactive Budget Sheet |Cashflow Forecast |

To find out how much money you can offer your creditors each month, take your household outgoings from your household total income.

If your income is more than your outgoings you have an amount of money for creditors.

There are ways you may be able to improve the amount available.

Review your business budget and consider ways of improving the position. For example:

- you may wish to review your pricing policy and whether or not certain unprofitable lines should be discontinued;

- look at ways of improving turnover/sales such as direct telephone calls to existing or new targeted customers;

- ask your suppliers for better prices or to give you discounts. You may wish to consider looking at alternative suppliers;

- you may consider concentrating on your core business, which may include selling or stopping part of your business activities;

- review your business costs to see where some could be cut or reduced;

- if you are owed money you should consider formal credit control and debt recovery procedures. See Late payment and bad debts.

Check to see whether you are entitled to Working Tax Credit, Child Tax Credit, Income Support, Pension Credit, Housing Benefit or Council Tax Benefit. Ask at your local Department for Work and Pensions office, council or local advice centre. See Increasing Your Income.
Check that you are spreading out payments on your household bills so you don’t have to pay them all at once. Gas, electricity, water and telephone companies usually have budget payment schemes.
See if you can cut down on any of your household outgoings, (but don’t cut down on basics like food, gas and electricity) in order to be able to offer even a small amount to your creditors.

If you’re having problems with any of the above, phone us for advice.

If your income is less than your outgoings, you may need to consider whether or not to continue trading, or phone us for advice.

Go to Stage 7: Priority Debts
Go back to Stage 1: Business Income
Go back to Stage 2: Business Costs
Go back to Stage 3: Drawings
Go back to Stage 4: Household Income
Go back to Stage 5: Household Outgoings

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