Essential expenditure
Credit scores & reportsCosts you need for basic living, such as housing, food, and utilities.
Overview
Lenders use essential spending to assess realistic affordability.
It helps determine how much income is available for repayments.
Why it matters
- It affects affordability checks.
- It influences repayment capacity.
- It is used to set fair payment plans.
FAQs
Do lenders set standard essential costs?
Some use benchmarks, but actual spending is often reviewed too.
Can essential spending be reduced?
Sometimes, but it depends on your circumstances.
Related terms
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