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Example Pro-rata Calculation

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Sub pages : What Are Secondary Creditors? | Interest | Free Debt-management Plan | Example of Offer to Secondary Creditors | Example Letter to Secondary Creditors | Example Pro-rata Calculation | Making Payments and Ways To Pay | What If My Creditor Refuses My Offer? | What If Creditors Harrass Me? | What If My Creditor Takes Court Action? | Further Action a Creditor Can Take | Can I Get Credit Again? | Credit Repair Companies |

After working through their budget sheet, Mr and Mrs X have £150 available to their secondary creditors.

Their secondary creditors are:
Bank loan £5,000
Credit card £3,000
Store card £2,000
Total £10,000
To work out how much they should offer:
Bank loan £5,000
0.5 x Amount available to secondary creditors £150
Divided by total £10,000
= £75 to offer to bank loan
= 0.5
Credit card £3,000
0.3 x Amount available to secondary creditors £150
Divided by total £10,000
= £45 to offer to credit card
= 0.3
Store card £2,000
0.2 x Amount available to secondary creditors £150
Divided by total £10,000
= £30 to offer to store card
= 0.2
Summary of offers:
Bank loan £75
               
Credit card £45
Store card £30
Total £150

 

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