Declaring bankruptcy UK is a serious step usually taken by those who feel they no longer have any other alternative. Remember, going bankrupt essentially makes you lose control of your assets, so it’s best to truly explore all other UK debt management options before considering bankruptcy. Whe...
A debt calculator is a quick and easy way of working out if you qualify for a debt management plan, trust deed or bankruptcy.
The trouble is the figures do not always add up if you don’t know some of the technical terms or how to work out what information to include.
Anyone can punch their personal figures in to an online debt calculator - but beware of the results.
A ‘debt calculator UK’ may give a different result from a ‘debt calculator Scotland’ because some of the rules and legal terms are different.
Working out the debt calculator figures
Here’s how to work out the important figures:
How many firms do you owe money?
The answer depends on the type of debt - secured debt is tied to your home, like a mortgage, while unsecured debt is not - these borrowings tend to be credit cards, overdrafts, store cards, catalogue accounts and personal loans.
The answer is the number of unsecured lenders you owe money.
What is your monthly disposable income?
Interested parties have agreed with lenders guidelines on how to calculate disposable income, which is the money you have left after paying your priority bills, like the rent or mortgage, utilities, council tax and day to day living costs. Priority bills also include tax and court fines.
Add these totals and take them away from the money coming in each month to leave your disposable income.
Do you think you can pay your debts in a reasonable time?
That’s not a helpful question if you do not know how long a reasonable time is likely to be. The response depends on how much disposable income you have - if it’s less than the minimum repayments on the account, then the answer is ‘no’.
Who should use a debt calculator?
No hard and fast rules say who can use a debt calculator - it’s a good general financial indicator for most people.
If you are struggling to pay your bills and want some idea of whether a trust deed or sequestration (bankruptcy) are options for you, then check out your status.
You should also discuss your finances with a debt adviser who can explain the various debt solutions to you and how they match your personal financial circumstances. Even if the figures show you qualify for bankruptcy, this is not necessarily the best and only choice to sort out your finances.
Debt calculator advantages
If you are worried about your finances and just want to check out your options, then a calculator is a good way of assessing your options.
Another reason for trying out a calculator is anonymity. You can test out various scenarios in private to give an idea of how your finances will hold up if interest rates change or your income goes down.
Don’t forget that a debt calculator is just a tool that gives a general indication of your money problems - it’s not something that should ever replace direct and personal advice tailored to your personal financial circumstances by a professional adviser.
For a number of years I struggled with my debts, I was constantly worried and stressed to the point it was affecting my health. HJS Recovery deal with all of my creditors and for the first time in years I feel relaxed and in control. Everyone at HJS Recovery have been very helpful, approachable and most important of all very respectful.
Miss W from Edinbugh
I would like to take this opportunity to thank all the staff at HJS Recovery for all of your assistance in helping me to resolve my mounting debts problem. The total understanding and professionalism shown to me was truly marvelous and removed all my fears and stress that I was going to become a Bankrupt. I now have my debts under control with just the manageable one payment per month to my creditors and I now can sleep easy on a night.
Mr P from East Ayrshire
The service supplied by HJS Recovery has helped me get my debts in order which has stopped them from getting out of control. There's always a friendly voice on the phone who helps me if there's any problems. Overall it just let's u live a stress free life.
Mr B from Lanarkshire
HJS Recovery have helped to ease the worry caused by the crippling debt I was left with after my marriage failure. I couldn’t see a way to ever be debt free but HJS provided the solution. Throughout the process they were supportive and non judgmental , which helped to ease the strain and if I am honest the shame I felt. I have had couple of glitches along the way and they have supported and been understanding throughout, helping to find solutions and move forward. I can’t thank HJS enough. I can see the light at the end of the tunnel... thank you!
Ms L from Stirling
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