Debt collection is a huge business in the UK and around the world too. With over 27 million adults in the UK suffering from some sort of debt, you can be certain that there will be lots of people looking for a quick and easy solution to paying off your debts.
One of the more popular methods of paying off debts is using what’s commonly known as the snowball debt method, involving a snowball debt calculator. We take a look at the best version of the snowball debt calculator UK.
Snowball debt calculator UK– the basics
What is this snowball debt, you might be asking. And to add to that, what is a snowball debt calculator? For starters, it’s got nothing to do with snowmen.
The snowball debt method is a way of paying off your debts methodically, if you are suffering from multiple debts. We’ll go on to cover the snowball debt calculator UK shortly as well.
The snowball debt method
The snowball debt method is a debt reduction strategy where you pay off your debt from the smallest debt all the way up to the largest debt.
You start off by making sure you pay the minimum amount across all your debts, and pay as much as you possibly can on your smallest, repeating this until each debt is paid in full.
It’s a great way of gaining momentum as you make your way through each debt, as when the smallest debt is paid in full, you roll that money you were using to pay off that debt onto the next smallest debt.
Just like a snowball, rolling it in the snow to make it bigger and bigger.
The snowball debt calculator UK
So now we know what the snowball debt method is. But what is the snowball debt calculator UK? There are several different options you can find on the internet that will help you with your snowball debt.
Basically, these snowball debt calculators allow you to type in all the information about your debts. It will also let you type in the total amount you are able to spend per month servicing your debts, and it will then work out the order in which you should pay them off together using monthly payments.
Find your best debt solution
Is all this information starting to feel overwhelming? Don’t panic! I’ve put together a 4 question debt calculator so you can quickly and easily find the best solution for you. Answer the four questions now.
Snowball debt calculator UK – best version
A quick search online will bring up all sorts of different snowball debt calculators that you might be able to use. Some of these are purely directed towards the US however, so they may not be of much use to you in the UK.
You can check out our very own snowball debt calculator. About halfway down the page you can find a handy 4 question debt calculator, which will ask you to input the total amount of your debt, the number of people you owe money to, your monthly income, and where you live.
After putting in your name and email address, and we’ll send you a handy snowball debt calculator UK guideline, offering advice on stopping any further interest or charges, how you might lower your bills, and ways in which you can end pressure from people chasing these debts.
You may be daunted by how long the snowball debt calculator says it will take to pay off all your debts. However, you may be able to speed the process along by taking on additional paid work and using this income to pay off larger sums of debt as they crop up, or to figure out new ways of saving your money and cutting down on expenses.
A snowball debt calculator is definitely one of the best ways of working out how to pay off your debts quickly and easily. There are many divided opinions about it because at the end of the day, you might end up paying more overall to completely clear your debts. In comparison to other debt clearance strategies, it’s definitely the best one to follow.
Below, we go through some of the more commonly-asked questions about snowball debt calculators and debt collection in general.
How do I work out how much I can spend each month?
You can work out how much you’ll be able to spend on your debts using a self-help debt management plan, which will tell you how much you are able to spend on your debts after necessary expenses.
Can my snowball debt calculator UK tell me how long it will take to clear my debts?
It can be quite complicated to work this out, especially if you have several different debts, because over time your interest rates will change. This will inevitably add extra fees to your debts. However, you may be able to work out the total amounts of interest that the creditors will charge, and pre-empt them in the snowball debt calculator UK.
Is snowballing debt a good idea?
In comparison to other debt relief options such as a consolidation loan, debt snowballing will almost always be a cheaper option. You’re able to repay all the money in the fastest time possible, end up with a respectable credit rating, and won’t get any hassle from your creditors.
Are there any negatives to using a snowball debt calculator UK?
The only real negative to using a snowball debt method is that it can take quite a long time to clear your debts, especially if you have a few different debts. You also have to keep really focussed on your budget and expenses if you want to meet the monthly payments on time.