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Personal Finance Statements

Have you been asked to fill out a personal finance statement? The first thing is that there's no need to panic - this is a perfectly normal request!

You've probably received it from a bank, or loan provider. Typically, before providing an individual with a loan, they'll want to find out more about your financial situation. They may not have had previous dealings with you. Even if they have, they'll want to check that you're in a position to make the necessary loan repayments.

In the first instance, such checks are about protecting the loan provider. They'll want to make sure that they are going to get their money back! But these checks can also be useful for you, as a borrower, too.

If the lender thinks that you would be unable to make the necessary repayments then that should act as a warning sign to you. It's why it makes sense to feel out the personal financial statement in a comprehensive fashion. You'll want to include as much information as you have available to you.

These statements do tend to vary in nature. Different providers will want to know about different specifics. But they are largely based on taking a closer look at your income and expenditure.

So you'll need to know all about this too. If you've looked at our personal budgeting feature than you may well already have many of the figures available to you. If not, now is probably the time to start tracking down the appropriate paperwork.

You'll probably need to provide information on a range of income and expenditure, including the likes of:

  • Payslips
  • Pension income
  • Other income (share dividends, rental income etc)
  • Housing costs (rent, mortgage payments)
  • Utility bills
  • Entertainment spending
  • Loan repayment costs
  • Credit card bills

That's not an exhaustive list - the actual details will vary depending upon the lender and what they're requesting in their personal finance statement.

Be prepared to give full details. Answering clearly and honestly is the best policy here. You'll be looking to provide the lender with a clear view of your personal situation. They'll then use this to assess whether you are able to make the repayments.