ummm...how do i work out pro rata??

sweet_escape

hiya, another qu from me today! how exactly do i work out pro rata repayments? ive tried googling how to do it but i dont understand....anyone good at explaining in simple terms? lol

mildredalien

I think pro rata is basically a percentage and with debt repayments I think it works out as percentage of total debt. So if your total debt is £1000, and you owe one creditor £500, one £300 and one £200, you would pay them 50%, 30% and 20% of your total debt repayment amount respectively. If you could afford £100/month debt repayment, they would get £50, £30 and £20.

Real numbers are always more complicated but same principles apply!

sweet_escape

Ok god i feel like my head is going to explode lol thankyou for your reply

mildredalien

Hehe maths is like that

A simple way to work out a percentage is to divide the smaller number by the bigger number. So your steps would be:

- add up how much your debts come to
- for each individual debt (creditor) divide the debt amount by the total debt
- write down each number (should be a number between 0 and 1 - round to 2 decimal points). this is your Pro Rata number.

Then:
- figure out how much money you have to pay to creditors each month in total
- to work out exactly how much to pay to each creditor, multiply the above total amount by the Pro Rata number for each creditor

niccatw

http://blog.thesalarycalculator.co.uk/tag/pro-rata/

I've used the second instruction on the salary calculator above as I can't do the maths otherwise!

ETA: Oops, totally misunderstood what you were asking! Sorry!