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Pro Rata Plan

This document provides instructions for calculating pro rata debt payments when minimum payments exceed disposable income. It involves listing debts and calculating each creditor's percentage of total debt. That percentage is applied to disposable income to determine the new lower payment to each creditor on a fair share basis. Sending payments at the pro rata amount, even if creditors refuse initially, allows repaying debts using a calculated formula when unable to pay minimums.

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David Toma
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© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
79 views

Pro Rata Plan

This document provides instructions for calculating pro rata debt payments when minimum payments exceed disposable income. It involves listing debts and calculating each creditor's percentage of total debt. That percentage is applied to disposable income to determine the new lower payment to each creditor on a fair share basis. Sending payments at the pro rata amount, even if creditors refuse initially, allows repaying debts using a calculated formula when unable to pay minimums.

Uploaded by

David Toma
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Pro Rata Debt List

The best way to beat debt is with a calculated formula! Go!

“But I can’t pay the minimum payments!” It’s okay. We have a plan for that.
“Pro rata” means “fair share.” Use this form to figure out what percentage of your income each
creditor represents, and then send their payment along with a copy of this form and your budget
every month—even if they say they won’t accept it.

Pro Rata Debt List


The best way to beat debt is with a calculated formula! Go!
Step 1
Subtract Necessity Expense (b) from Household A Household Income

Income (a). That gives you your Disposable Income B Necessity Expense — Total Min.
(c). That’s how much money you have to pay toward
debt after you’ve covered all your necessities. C Disposable Income =

Step 2 Pro Rata Debt List


The best way to beat debt is with a calculated formula! Go!
ITEM PAYOFF TOTAL DEBT PERCENT

Write in your Total Debt (d). Then collect all your


bills and add up the grand total of all your monthly
Household Income D Total Debt
minimum payments. Write that in Total Min. Payments
Necessity Expense — E Total Min. Payments
(e). If your Total Min. Payments figure is higher than
your Disposable Income (c) figure, you need to use
Disposable Income =
the Pro Rata Debt List.

ITEM PAYOFF TOTAL DEBT PERCENT DISP. INC. NEW PMT.


iteM paYoFF total debt = percent x disp. inc. = neW pMt.

F G H I J K

Step 3
List each debt in the Item (F) column and write the total debt payoff amount in the Payoff (g) column.
Go ahead and write in the Total Debt (h) and Disposable Income—or Disp. Inc. (J)—amounts from the
top of the form too.

Step 4
On each line, divide the Payoff (g) by the Total Debt (h) to get the Percent (i). That figure shows you each
creditor’s fair share of your available income.

Step 5
Multiply the Percent (i) by your total disposable income in the Disp. Inc. (J) column. Write that in the
New Pmt. (K) column. That’s what you should send to that specific creditor.
Sign in Free copies Repeat
at daveramsey.com tothat
of this form math
download
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item on the list to calculate your pro rata payments for each one.
Pro Rata Debt List
The best way to beat debt is with a calculated formula! Go!
Don’t include consumer
debt payments
Add up the total debt
column & enter total here

Household Income total Debt

Necessity Expense — total Min. Payments

Add up all your minimum


Disposable Income = payments & enter here
Use the formula below
to find your new payment

iteM paYoFF total debt = percent x disp. inc. = neW pMt.

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