Emergency fund savings??

FabuLass

Hi all, I'm into my 2nd month of my DAS (scottish version of dmp) I would like to try and put something away for emergencies and would ideally like to open a savings account with the bank, as I read on here about transferring the pennies from your main account daily and allowing that to build up. Also if I put money in to the account but needed it I could transfer it easily back to my bill payment account.

Ok, so after all that waffling, my question is, am I allowed savings? Will no-one question at anytime the fact that I can save X amount per month means that I should be paying more to my creditors? Do I get re-assesed at any point and have to show bank statements again?

Not that I think I can save much (if anything), but im determined to give it a go. Do you all save money into a bank account or do you stash it in cash at home?

Thanks in advance :beer:

RAS

You are expected to budget for Christmas, Birthdays, car tax, insurances, repair costs etc.

All these are more cost effective if you budget a small amount (one 12th of your annual expence) each month and then use the accrued money to make an annual payment.

If you are currently making monthly payments, it may take a while to accrue enough to be able to transfer to an annual payment for all these, but that should be your ultimate aim.

I cannot see anyone objecting to proper budgetting

FabuLass

Thank you RAS, I just wondered if flags would be raised if we ever were lucky enough to have a few hundred set aside, but I would like to try do as you suggest and be more prepared in future.
Its scary not having the credit cards for emergencies, but im enjoying paying for items with real cash, and not credit for the first time!

RAS

You need to budget for emergencies. End of.

If it ever gets to huge savings that are not allocated, that is different.

coolcait

As long as you keep up the payments to your DAS that's really all that matters.

If you stick to the agreed payments, and the other conditions of the DAS, then there's no reason to revoke your DAS.

You will get an annual review of your circumstances. However, no one can oblige you to pay more to the DAS - even if you are able to do so.

For people who are struggling with their payments, it's an opportunity see if they can be reduced, or to consider if DAS is really the right thing for them.