In order not to take out a loan without being sure that you can pay it back, we recommend that you make a budget of your income and expenditure. 😊 

How is this done? Simple. We help you put together information about your income and expenses, credit history, and the impact of new credit to make sure your decision to take out credit is an informed and responsible one.

Income - this is where you should list absolutely all your sources of income. 

Here are a few: 

➕ Salary. Ok, if your salary is fixed, the job is simple. However, if you're a day labourer or paid by the hour, or on commission, add the minimum wage you receive each month to your budget. 

➕ The money you receive in the form of meal vouchers (these can be matched against variable expenses - see below) 

➕ Child benefit - if you're a parent (you know, that full-time job) 

➕ The bonuses you get regularly at work 

➕ The first ones - because we know you, you're amazing! 

➕ The money you earn from dividends (if any) 

➕ The money coming from the tenants 

Expenditure - this is divided into: 

1. Fixed expenses - i.e. the ones that come in every month and eat up a bit of your budget. You can easily recognise them by the following names: 

➖ Rentals 

➖ Utilities - water, gas, electricity 

➖ Subscriptions - phone, internet, TV, gym

➖ Loans - for example for a car 

➖ Insurance 

2. Variable expenses - these come up inconsistently, and when they do, they take hard to track amounts out of your budget. That's why it's so important to recognise them and keep an eye on them: 

➖ Food 

➖ Relaxation activities 

➖ Trips and holidays 

➖ Hygiene and cosmetic products 

➖ Clothing and footwear, and the list goes on. 

Now that you've made these lists, all that's left to do is subtract the total income from the total expenses. The amount you get is actually the money you have left at the end of the month. What do you say? Does this budget include another instalment for a loan? 🤔

If you're thinking of taking out a loan, you can calculate your monthly repayments online in the BT credit simulator and then find out over the phone if you're within the amount you want.