What does the Debt Calculator do?

Jan 11

The debt calculator is a tool that gives you an indication of what you would be likely to pay each month for a variety of debt solutions and how long you would need to pay this for. The calculator covers the full range of solutions but works best for Trust Deeds and Debt Arrangement Schemes (DAS).

How does it work?

All the debt calculator needs to know to give you this information is your location, employment status and debt amount. You may be wondering why it requires these 3 specific pieces of information.
Well the reason it asks for your location is that insolvency law varies depending on which part of the UK you are from. Therefore, depending on where you live, only certain debt solutions will be available to you. For example, a Trust Deed is only available to residents of Scotland whereas an IVA is limited to residents of England.

Your employment status is important because some debt solutions require you to make monthly payments to contribute towards paying off your debt- hence if you are unemployed there are certain solutions which you will not be able to apply for.

Finally, the calculator needs to know the total amount of debt you are in so that it can calculate how much you are likely to be required to pay each month towards your debts.

Why is it useful?

The calculator is a great tool because it helps you see how much you could be paying each month to service your debt. Using a debt solution, the amount you pay each month is usually dramatically reduced and with a Trust Deed or IVA, there is a certain amount of debt relief. This simply means that you don’t have to pay back the full amount of your debt, only a portion of it. That’s the whole point of a debt solution; to give you the breathing space to pay back what you can over a longer period of time.

So will the calculator tell me everything I need to know?

The calculator is a great tool but it is designed to give you an indication of what you are likely to pay and inform you about the way different debt solutions work. This would also be a very powerful tool that will help prevent yourself from going bankrupt.

In order to really sort out your debt problems, it you should seek advice from an expert. There is no calculator that can take into account all your specific needs and cover your specific financial situation. For example, it’s impossible for a calculator to know how to protect your house or car from being used to help solve your debts but an expert or licensed insolvency practitioner does know how to do this.

Your Debt Expert have a debt calculator on their website and also provide free, no obligation debt advice- so you can trust that they will only recommend the right solution for your needs. Give it a try to see how you might be able to get out of debt.

~Peter Dean