One of the problems a lot of people will experience in their life, is that they will experience financial difficulty.
If the difficulty gets to the point where they can’t manage it, they may get advised to use a “pro-rata” style method of payment towards their debts.
This method basically does a calculation based on how much you can afford. Then allocates a certain percentage of that payment, to each lender or debt that you owe money to.
Each lender receives a portion of the amount you can afford, proportionate to how much you owe them. This can work out saving you a lot of money if you’re in Financial trouble.
FOR EXAMPLE : If you are spending £300 per month on debts, but if you can only afford £100, then that would be saving you £200 per month in terms of finances. Rather than you constantly getting back into financial problems again and again.
The pro-rata style of payment helps you get your finances in order again, as it allows you to have a fixed payment plan in place when it comes to your lenders.
The pro-rata is generally considered the debt repayment method to use, because it treats all of your lenders fairly. Everyone receives the amount of money, proportional to how much you owe vs how much you can afford.
If you want to access the calculator, you can download it from this site using the following link below. This may prove useful and help some of you.