How should hire purchase (HP) or conditional sale (CS) items be treated in the CFS?
The CFS has categories for HP/CS in the expenditure section. This allows HP or CS loans to be included if they were taken out to buy essential items. Whether items bought on this type of credit agreement are essential will depend on the client’s situation (for example, a car providing the only way of travelling to work would be deemed as essential). If an item is not essential, advice should be given on terminating the HP/CS agreement as creditors may refuse to accept this expenditure.
