Do you have savings whilst paying off your debts?

urg123

Hi

My savings are really other accounts to hold my annual spends. i.e. my insurance costs about £350 per year - rather than sticking it on the CC I save a proportion of the amount in a separate account so that I can pay the bill in full. It's a bit like having a DD but without having the interest payments!

I use the SOA function to set my budget and this includes an amount for emergencies. I put aside £50 a month most months to help me to keep going and pay for household emergencies - I'm not as good as I should have be - I don't always add the money to my account.

Hope this helps.

urg x x

posted_2

If you are paying interest on the credit card, you will be losing out interest at the same apr on the annual savings.

Diana_Prince

All my debt is with DCA's at 0 interest, so I have about 400 in savings just so I can start to offer F&F settlement payments!

Jo_R_2

All really interesting, thanks!

Penny2myName

As I paid off some of my smaller debts, I decided to start using the amounts to save. I now have 3 savings accounts all for different things. One account I save £1 a day in, that that will cover the costs of my children's bunk beds in Nov when they get added to my Catalogue account (bnpl) so I can clear them in one go. My second savings account gets £5 a week into it, this is then used when unexpected costs emerge or I know atleast a week before hand i am going to be short to cover a DD, so transfer the required amount over, and I have just opened a 3rd account to recieve £25 a month, this will cover birthdays/xmas and other gifts.
Since I recently had some inheritence left to me I have used the majority of it to clear a huge chunk off of my debts, and so my savings amounts will be going up. Just need to decided how much by now.

Lemon_Tree

i have savings but they are for things like annual car bills, christmas, house insurance etc.
soon when my overdraft is paid off i will be saving towards paying off my loans in lump sums as this is the only way of doing it.
I do have an odds and sods account where i've been saving the bits i've saved on receipts and the bingo etc, it's upto £120 but i can't seem to bear to use it to pay off a debt as the only ones left to pay easily are on 0%

buxtonrabbitgreen

I have a share save savings account with work, with about £400 in. This is a faff to get at so is fairly safe. I am saving it for if my car fails the MOT in a big way. Or if not towards a newer one eventually. I have to get to work to keep earning money even if I am paying more in interest on the credit card. I was getting it all under control until the oh was out of work for 3 months again this year.

Deep_In_Debt

I save whilst paying debts, mainly for an emergency fund - car repairs, boiler etc. I had an emergency free year last year so built up a little bit. However, I have also used some of my savings to pay off some of my smaller debts in the past.

beanielou

I save a small amount every month with my credit union.
It is slightly more difficult to get than the money in my current account & that suits me down to a T.

Little_Chicken

I have savings in an ISA, but this is because my credit cards are at 0% I can't wait to be debt free - and have savings, then I can start reducing my mortgage :0)