how do you cope without credit in emergency?

debtfree2010

We are just going down the DMP road (self administered)
How do you plan for an emergency, car break down etc ??
Do you make token payments for 2 months to build up a emergency fund ??

Normally this is not something i give thought to as i would just put it on the CC's but now i wont have any, its something i need to plan for.

Any advice is greatly appreciated.

determined_new_ms

Hi I wasn't on a DMP so was in a very different siutation, but from what I have read is ppl are extremely frugal within their allowed budgets and creat a small surplus to put aside for emergencies. I did find it really hard myself never having any money and worrying about "if something goes wrong" hth x

looktothefuture

It would depend on what I would class as an emergency... the dishwasher breaking down, the washing machine dying, the car breaking down... not so much of an emergency in my books - I could wash the dishes and clothes by hand (the clothes I would begrudge having to wash by hand, but there is always my mothers/sister in law's machine I could borrow on a weekend!) and I could walk to the station if I had no car - it would mean I'd have to leave a hour earlier than normal, but if needs be...

however...

if the water tank burst, the plumbing went haywire and we had some electrical damage - I'd have to say to my creditors "sorry, but the health and the well being of my family is at stake, here's a token payment so that I can get xxx fixed!"

I never have had an emergency fund, and probably never will because every penny is tied up in my budget - I have the bells jar of pennies and my overpayment debt pot which in a way could be used in an emergency but it would really have to depend on the type of emergency!

dreamdreamer

I agree - your definition of an emergency definitely changes when you're broke and desperately trying to pay off debt. I could count on one hand the number of things I would break stride in my debt-paying for... water damage/burst pipe/etc... electricity issues... poorly pet... family in trouble. That's it. Anything else I'd just work around! I sold my car and cycle to work to lower my monthly costs so that's not an issue! I can't in good faith have an emergency fund while I'm paying interest on debt.

secretshopper75

Mine would be along similar lines, hot water/heating breaking down, one of my beloved cats being ill/injured etc

handyman123_2

I recall reading a similar post to this a few months ago? If memory serves it was suggested to allow for a contingency fund in your SOA, even if it's just a few pounds a month to allow for emergencies.

It might be useful to have a search and see if you can find the thread.
Regards, Handy.

debtfree2010

Thanks for all your comments

My main worry is my hubby is self employed and the van is the heart of his business... without that he cant work

I think I will add a bit extra in our SOA for emergencys.


Thanks

john_kent

Keep your husbands expenditure for hi sself employed part clearly seperate. I didnt do this and found when I was starting on the dream of being self employed that I had no money for parts and petrol etc..........

You need to make sure you can differentiate between emergency and hinderence.

A dishwasher failing is not an emergency nor is a boiler not working. You can do dishes by hand or wrap up in extra blankets for a few weeks.

An emergency is when your pipes burst and you have no momey to fix and no water.