can you start saving whilst in debt

fizzel81

just a question can i open a saving account if and when (hopefully) payplan sets up a plan for us or is this not allowed untill everything is paid off, i would not be looking to save a huge amount each month just enough to cover emergencys such as if something breaks down
tia

dottyanne

Personally, what im going to do is once i have caught up - hopefully this month, then i have done Martins Budget and the money i am putting away for Christmas and Birthdays will be an emergency fund, at the end of all this im keeping my Egg Credit Card only - but thats only until i have enough money saved so that i can cover myself in the event of an emergency...save by all means, but save wisely as theres no use money sitting in a savings account or piggy bank when it could be gettin you quickly out of debt!! Good Luck, dotty xx

black-saturn

When I was paying mine I had a small amount of savings for things like emergencies and birthdays. Any other surplus money I had would go to paying the debt off.

kar

I don't think you can if your using payplan.

The whole point is the companys are letting you off lightly by freezing interest etc aranging payments you can afford. They aint gonna be too chuffed to find that you aren't paying off everything you can be. If you find you have money left over - talk to payplan and ask what they advise. I expect they will advise sending it to your creditors.

CLAPTON

Of course you can have a saving account with a DMP or IVA. Make sure it is not with a company you owe money to. On a tight budget it is absolutely essential to save for the quarterly, yearly bills and for the inevitable emergencies. Otherwise you would have to borrow just to pay a yearly bill. Obviously the amount saved should be proportionate and not a way to avoid paying off your creditors

fizzel81

thank you for the replys, it wouldnt be a huge amount but by this time next year ds will need a new bed (he is in a toddler one) and thats just for starters it would just be so as said i have enough for yearly bills ie car tax anything ive under paid on gas/elec etc, once we have set up dmp with paypal if we do find we have quite a bit spare(which i doubt) we would hopefully be able to up the payments, i just want to get paid what i owe asap, dh comes out of the army in 4,5yrs i would hate us to have to spend his golden handshake money on debts

Broken_hearted

We have an ISA £400 in waiting to pay wescot, and two other savings accounts witha grand total of £40 between them.
We don't need or use payplan or cccs as I like to have control and they are too restrictive. So I don't know what they allow you to have.

headchef

Of course you are 'allowed' to save. if you are in a formal plan (DMP orIVA) then what they will object to is you having a massive increase in income and you don't forward any of it onto them or something like that. On a DMP you have a 6 month review anyway but following Martin's budget planner for instance, takes into account big spends that need to be saved for! This isn't Victorian Britain where you were expected to starve to pay debts.
Your saving plans seem realistic and NECESSARY. It would be a different matter if you were saving for an expensive holiday or new conservatory!
Again, your SOA can easily reflect amounts put aside for 'necessary' expenses esp where your children are concerned. Cos we all know they are expensive little darlings :eek:

moxie_2

Yes I'm with Payplan and I have an ISA. I need it to save for uni tuition fees and Payplan know about this and have made allowance for it. So I'm sure it will be fine, but do speak or email them to check.