An ‘Affordability Calculator’ that allows advisors and borrowers to set arrangements for debt repayment has been launched by an analytics software company.
FICO says its web-based tool, which guides consumers through the sustainable repayment process, is available now in the UK and allows for worldwide configuring.
“This tool helps consumers meet their payment obligations and helps lenders and collections agencies practice responsible lending,” said Gabriel Hopkins, FICO product manager.
“It removes the embarrassment people often feel when explaining their financial situation to a collections agent or lender and makes the process of establishing affordability quicker for consumer, lenders and collectors.”
The tool creates forms in which questions – designed to suit a user’s status – encourage self-assessment of financial health. The questions may be changed by using associated software. “This makes the calculator useful for all kinds of lenders and collectors,” explained Hopkins, who said understanding a consumer’s capacity to pay was an important starting step.
Andrew Skinner, Palmer’s head of debt, possession and insolvency, said: “Increasingly, online resources will be brought to bear on a range of issues with which lawyers engage and anything which helps those in debt, and those who seek to collect them, is welcome.
“Of course, this tool is really for the use of individuals, but it brings up a broader point of which businesses should always be reminded: However appealing a quick-fix solution seems, there rarely is one, much less a one-size-fits-all approach. Debt by its nature is a complex area and fraught with potential problems.
“At Palmers, we are experienced in all aspects of commercial debt litigation. For information about our range of services, please contact us.”