A financial statement is a household budget. It shows:
- how much income you have
- how much you need for basic living expenses.
A financial statement is an essential tool when dealing with debt problems. It gives a clear picture of your income. It clearly shows what you spend and any money left over. This will help you plan how to deal with your debts.
You can use a financial statement to show your financial position to people or organisations you owe money to (your creditors). You can also show the financial statement to courts.
It is important to make sure your financial statement is realistic. It should always:
- reflect what actually happens in practice
- leave you with enough money to pay your main expenses.
Download a financial statement that you can use to show your income and spending.