DMP top up or sharesave help

gettingoutofdebt7

Hi

I'm hoping someone can help me with my question.

I am currently on a DMP and have just been promoted (so will have additional income every month).

My company offers a sharesave scheme, which means that you can invest in the company every month at a discounted rate e.g. current share price is £3.00 but we've been given the option to buy shares at the rate of £2.40.

My question is - am I better off putting my additional monthly income into my DMP with stepchange or am I better off putting it in to the sharesave scheme for the 3 years, which will prove more lucrative, and then paying off my DMP balance when it matures in 3 years?

I'd really appreciate any thoughts and guidance.

Thanks

ShirePiskie

I would put more towards debt.

My brother and his wife both work for the big blue supermarket and are part of a sharesave scheme. It has been very lucrative over the years but share prices have tumbled recently and I don't know if the money they have saved/ invested is protected so they at least get back what they've put in since their last option to sell shares. You NEED to find this out. I would think, with any investment opportunity, there is a risk.

Getting out of debt, as is your name, should be your priority!

gettingoutofdebt7

Thanks for the reply ShirePiskie. The worst that can happen with the sharesave scheme is that you'll get the money back that you put in so my gut feeling was to put money into this rather than topping up my DMP.

Carrot007

I used sharesave as a emergency pot on my dmp.

I thought it the best way to do that part, it only takes a couple of days to get the money if you need it and having it out of immediate reach helps keep it there till it really is needed.

So maybe that might be an option! Think about it! Do you even have an emergency pot and is it really enough. Maybe put some to the debt though if you are going to get a lot more.

gettingoutofdebt7

Thanks Carrot007, that's a great idea.

LondonGirl252

I had share save with my last firm too, it was fab and made quite a bit on it and like yours you can get your money back fairly quickly with no cost. and no risk of shares losing value so, if you can manage your DMP as well as investing I would do it that way and if you have an emergency you can always get it back.


so long as the DMP allows of course!