Before you borrow money, all regulated lenders need to check if you can afford to make the repayments on time every month, for the entire duration of the committed term. The monthly amount you commit to should never be higher than your monthly disposable income.
To calculate your disposable income, first work out the fixed costs that you pay every month – for example rent, food, travel, and any other financial commitments you have. After adding these up, you can subtract this amount from your regular monthly income to calculate your monthly disposable income. You shouldn’t look to contribute more than this towards your Credit Builder.
If you’d like any help figuring this out, please get in touch!