dmp & savings

preciousb

i already have a savings account can i still use this to try and save money while i am on the dmp?

Any help appreciated. thanx

preciousb

anyone know if i am allowed to save in the isa i have or can i open a savings for any spare cash i may have?

CLAPTON

yes you can have saving whilst on a DMP.
In fact you need to save for all those annual/ irregular costs or the odd emergency.

preciousb

thank you thats good to hear i jsut needed to make sure so i can prepare for the furture.

beentherewornthetshirt

As your debt is only £4500 (I know it may as well be a million if you can't afford the payments) you would be best to put your savings on hold and concentrate on the debt.

Creditors scrutinise every piece of expenditure on your statement of affairs and given that one of your creditors is Welcome Finance, they may refuse your proposals. Also by showing payments to savings plans, you are also advising your creditors that you may in fact have monies available to pay them either in full or a substantial lump.

I would concentrate of your debt and leave the savings until later.

OberonSH

I would disagree with beenthere. What about if your boiler needs replacing? Or a windscreen crack?

If you find yourself with say £50 a month left over, then I'd put half into savings, and half onto the debt. That way you can show you're being sensible and putting aside for emergencies, plus you're increasing payments to match your extra money.

beentherewornthetshirt

Sorry Oberon, would disagree.

If you look back at this particular posters SOA, you will see they use public transport, so therefore no car, they live in rented accomodation, therefore no repair costs for broken down boilers etc.

Hypothetically, if they were paying say £100 to the creditors each month and saving say £50, they would repay their creditors over 45 months (if all interest and charges are frozen). Why should their creditors allow them to save money for their future (not necessarily for emergencies) when if these were the figures they could be repaid in 30 months??

If you were a creditor, would you wait an extra 15 months?

bonnie_2

Also bear in mind that if the creditors see money in an account they can whip it. so save it at home in a cash box. Halifax tried to steal £600 of our money once so they do watch your accounts to see what you have.

preciousb

hi thank you for your opinions the thing is i am on a debt management pplan with payplan and my partner is on with ccs. My personal debt is £13500 where as my partners is £4500 aprox. I personally thought that i could make additional payments into the scheme but payplan are not allowing additional payments unless they are made every month. I work contracted hours but the fact that during holidays i can get extras hours = extra pay.

As for emergencies yes we live in rented flat use public transport hence why we do need to save money as we need to buy a car to save on transport costs of going home everyweekend.

Also additional payments do appear occassionally which you may never think of. So any more advice?

i might ask payplan and see what they say regarding this matter i just wanted to know if your allowed more than anything else but hearing it from other peoples points of views gives me a better picture from different angles.

OberonSH

It depends. Whether or not I was the sensible sort of creditor that realises that real life means extra expenses nearly every month. Okay, so you've picked holes in my example. But there's always somehting that crops up, and if the OP has something by, then maybe that will stop any more borrowing to cover that, and stop the whole thing starting again. You have to be realistic!

I have a lass who owes me £340. After going to court I got £10 a week, if she had some extra money I would'nt be bashing her door down to get an extra few quid a week, especially if after say 5 weeks she had a problem and had to stop paying me to cover the emergency.

I'm sorry you disagree but considering you paint yourself as in 'the trade' surely you'd rather know the people who owe you were making sustainable payments, rather than having to stop every 2 minutes because of surprise bills.

Besides, I'm sure we're not talking holidays to Barbados type savings here, OP what sort of savings did you have in mind?

preciousb

initially for car for next years accommodation. In a couple of years we will be looking into marriage but the important fact we want to save for is to kind of have a good base for emergencies etc. This is the reason all this debt started. I want it all over and not to be back init at all. I am trying to get extra hours at work when ever i can to help build some money up.

I didnt know they keep an eye out on your accounts. something to keep in my mind.