Pro Rota Payment

sambo1983

I am trying to work out a budget sheet so I can offer people I owe money to payments. The CAB says to work it out on a pro rato basis but I am unsure how to do this any help welcome thanks

SalsaDanca

Pro rata simply means in proportion, so you are working out how to share your monthly repayment between your creditors in proportion to how much you owe them. First work out your total debt, and how much you can afford to repay each month. The pro rata payment you should offer a creditor is your monthly repayment multiplied by the amount you owe that creditor, divided by your total debt.

For example, let's suppose that you have two debts - a loan with an outstanding balance of £5,000, and a credit card with £1,000 on it. You have done a budget and worked out that you can afford to repay £100 per month.

The credit card gets your monthly repayment (£100) multiplied by the amount you owe that creditor (£1,000), divided by your total debt (£6,000), which is £16.67.

The loan gets your monthly repayment (£100) multiplied by the amount you owe that creditor (£5,000), divided by your total debt (£6,000), which is £83.33.

If you would like help doing your budget, there's a link to a Statement Of Affairs calculator here, which you can fill in and post here for people to comment on.

Regards,

Rob

fatbelly

The Soa calculator on http://www.makesenseofcards.com/soacalc.html now includes a pro-rata offer function

'If you do not have enough money to make the minimum monthly payments on your unsecured debts but you are able to afford to pay something each month, then one option for you is to divide up the available money between your creditors pro rata (so the largest creditors are offered more). This 'Offer to Creditors' function produces a summary version of your SoA which you can send to your creditors with a letter saying that you are unable to afford to pay the full monthly amount and would like to offer them £x as shown on your enclosed Statement of Affairs. Also ask them to freeze interest and not add any charges to your account.'

Valley's_girl

Hi I use this one
ally