- Council Tax
- TV Licence
- Mortgage or rent
- Home and contents insurance
- Telephone, mobile and internet service.
Existing credit commitments:
- Loan repayments
- Credit and/or store card repayments
- Hire purchase or in-store credit agreement repayments (for example, for furniture or a TV).
- Car tax
- Car insurance
- Vehicle maintenance
- Car finance repayments
- Other transport, such as train or bus tickets.
- Food shopping
- Toiletries and cleaning products.
- Pension contributions
- Life insurance premiums
- Other insurance, such as critical illness or income protection cover.
- School trips
- Childcare costs
- Maintenance payments
- Private tuition/schooling.
- Eating out
- Lottery tickets
- Gym membership
- TV subscriptions (such as Sky)
- Trips out (for example, to the cinema or events)
- Magazine and newspaper subscriptions/purchases
- Drinks outside the home (including coffees and alcohol).
Of course, every household has different bills, so it's important to not treat this as a complete list.
Think about any extra costs you or your family might have to pay.
It’s a good idea to gather bank account and credit card statements from the last three months and record everything you spend over a period of a month or longer (as you might have some bills taken every six or twelve months).
Make sure you include everything you spend to get a true picture and add a bit extra to allow for inflation and any unexpected costs.
When you know:
- exactly how much money you spend in any one month, and
- how much you need to put aside as a cushion or to save
you’ll be able to see whether you can afford to take on any new borrowing.