If you’re in debt, it’s time you knew more about help debt calculators!

You’ve heard of Debt Management Plans, Debt Relief Orders and Individual Voluntary Arrangements – but how do you know which one you should use? Or should you be using none of these?

The answer may lie in using a help debt calculator. Find out what they are and where the best one is in this MoneyNerd guide. 

What Is a Help Debt Calculator?

People with debt don’t all get out of debt in the same way. There are many debt solutions on the market, which are suitable for different people. The debt solution you will need will depend on personal factors, such as the amount you owe, your income and even if you own a home.

But navigating all the criteria of each solution and understanding which one will be most advantageous for you is hard. Not only does it take a lot of time and research, but it may be stressful and confusing. Moreover, doing it along is more likely to lead to misunderstandings and costly mistakes.

One way around this is to get free debt advice from a debt charity over the phone. And another is to automate this process with a debt calculator. 

The same charities usually provide an identical service conveniently where you can answer questions about your personal debt and finances, and then be given a recommendation.

It crunches the numbers to calculate which solution will fit with your expenses and allow you to live your life and repay over time. They take around 10-30 minutes to complete.

The Benefits of a Debt Calculator

We’ve already alluded to the benefits of using a debt help calculator, but here are them in full:

  • It’s convenient and doesn’t require you to speak on the phone
  • They are quick to complete
  • Saves you time, research and effort
  • Helps avoid you making mistakes and agreeing to less beneficial debt solutions
  • Some debt help calculators initiate further action and help set up your debt solution

The Disadvantages of a Help Debt Calculator

The main disadvantage of a debt help calculator is that not everyone in debt may be comfortable going online. The good news is that there are often numbers you can call to get a more human service. Moreover, you might need clarification on a question and can’t get it facing a computer screen.

Another disadvantage of a debt help calculator is that it might not accommodate really niche situations. For example, you might not be able to let the calculator know about an unusual debtor situation.

Where Can You Find Debt Help Calculators?

You can find debt help calculators on the websites of debt charities and community organisations. The calculators are free to use and you never feel pressured into following up with the debt solution that is recommended by the calculator. 

Debt Charity Calculators Vs DMC Calculators 

You can also find debt help calculators on the websites belonging to Debt Management Companies. However, you should be cautious about using calculators on some commercial websites. Debt Management Companies calculators are usually made as lead generators to recommend one of their own debt solutions services, which you will have to pay for.

Using debt charity help debt calculators is probably the better option.

How Accurate Are Help Debt Calculators?

These calculators can be accurate enough to work out which solutions are suitable for you, but they may not be accurate enough to say exactly how much you could save or what your repayments will definitely be. 

This is because some information will need to be negotiated with your creditor, and a calculator will never be able to predict this aspect of the process.

What Is the Easiest Help Debt Calculator to Use?

We’ve been busy testing a number of the debt help calculators online at UK charities. And we believe the calculator tool at Step Change is probably the best right now.

You start by answering a few questions about the way your debt is making you feel and how your creditors are behaving. You will then answer more questions regarding your living arrangements, employment status and the amount of debt you owe.

It is sometimes the case that the calculator will pinpoint more than one debt solution that could be right for you. In these events, it doesn’t leave you hanging. Instead, it recommends speaking with their agents and receiving further free debt advice.  

Can I Get Step Change Debt Advice Online?

Yes – if you don’t want to pick up the phone you can continue by getting debt advice online via a chat service. This ensures that you don’t just get generic advice or blanket recommendations, but you receive advice tailored to your circumstances.

At this stage pf the process you will provide more detailed information about your finances. These details will allow Step Change to decide between the different solutions you are suitable for.

Step Change Go the Extra Mile

We’ve also noticed that Step Change can provide their debt calculator users with a free service to set up many types of debt solutions. Step Change may even be able to set up solutions that usually cost a lot of money via Debt Management Companies. 

Should I Try More than One Debt Help Calculator?

It is never a bad idea to try more than one debt help calculator. This will help you find some continuity in results. But if you do decide to try multiple calculators, it is always recommended to at least use one of the debt help calculators on debt charity sites.

Using multiple debt management company calculators may not be so reliable due to their commercial interests. 

MoneyNerd Is Here to Help!

If you need more information on the different debt solutions, MoneyNerd has created comprehensive and easy-to-read guides on each one. Check out our debt solutions page for details.

About the author

Scott Nelson

Scott Nelson is a financial services expert, with over 10 years’ experience in the industry, including 6 years in FCA regulated companies. Read more
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