The Common Financial Statement
The ‘Common Financial Statement’ is a tool that provides a detailed budgeting format that enables an accurate overview of a client’s income, expenditure, assets, and liabilities. This tool assists with the preparation of realistic and sustainable repayment offers. The common financial statement improves communication and transparency between creditors and advisers negotiating on behalf of clients.
Supporting creditors will accept offers made by the common financial statement, providing those offers are made by independent money advisers based on expenditure trigger figures that follow the latest guidelines. It is recognised by a range of formal schemes and codes of practice.
The ‘common financial tool’ (see
here) is used to assess a client’s situation against different statutory debt solutions. It uses trigger figures to determine if a client’s expenditure is reasonable.