The internet is full of almost every kind of finance calculator to determine nearly any financial question you might want to ask. Whilst some of them can be incredibly accurate, other questions are a lot more nuanced and don’t quite fit into a basic algorithm. An IVA calculator being a case in point.
Take, for example, a mortgage repayment calculator. This is as straightforward as it comes because you can easily include the details it needs to calculate the repayments that you will need to make based on how much you borrow and at what interest rate.
An IVA combines all your debts into one repayment to the insolvency practitioner and is usually a much more complex calculation that needs to be personalised to your requirements.
“We have the perfect IVA calculator”
Anyone claiming to have a perfect IVA calculator that you can fill out and get an automatic answer should probably be avoided because an IVA stands for Individual Voluntary Agreement and the fact that it starts with ‘Individual’ means it requires much more detail than an online calculator can usually offer.
Different debtors will have different interest rates, different late fees, penalties and probably different demands they require from you. A calculator cannot take all these into account and offer you a reliable monthly payment that you would be expected to pay.
As a general rule, an IVA calculator is simply a lead generator tool designed to get your contact details so a representative can contact you to discuss your needs. This is not necessarily a negative thing, but if you were hoping that by plugging some numbers into the screen and giving up your email address would give you an accurate determination of what an IVA can do for you, you are destined for disappointment.
If you are genuinely looking to find out what an IVA can do for you and are serious about getting creditors off your back and simplifying all your debts into one easy to manage monthly payment, then forget about testing out calculators and taking the easy route. Invest some time into speaking with a professional about your situation and allow them to give you advice on what your next move should be.
For a rough estimate, an IVA calculator is worth a shot but do not make your next financial decision based on its answers.
Sure, an IVA calculator seems fun and an easy way to determine your next move, but in reality, every financial situation is unique and only a human can determine what you can expect out of getting an IVA and if it is the best solution to your financial problems.
Often times, after speaking with someone about your finances, you will gain greater clarity and insight into your situation and be able to make better decisions. We are here to help you.