How much emergency fund?

yeahyouknow

Hi guys

I have around 80k in unsecured debt with 16 creditors.

I'm around a month or two behind on my minimum Credit Card payments and a week or so on all my loans.

I've asked them all for 30 days while I set up a DMP.

I have around £2,000 a month after expenses to pay off my debts - you're looking at over 3 years.

My only question is - shall I try and aim for the DMP to be set-up by the time I get paid in Jan (25th) or shall I create an Emergency Fund? If I do then shall I keep £2,000 in Jan and start it i in Feb? What amount should my Emergency Fund be please?

My expenses are around £1,700.

Thanks

C

sourcrates

I've replied to your other post, so I'll reply to this one as well.

Yes, emergency fund is a must, at least a couple of grand, just in case of, well, emergencies !!

You won't have credit to fall back on you see, so pre planning prevents **** poor performance yea !!

datlex

How much depends on your circumstances. I would say you need enough to cover uninsured losses plus a delay in waiting for payments such as benefits/redundancy if you lost your job.

theoretica

What emergency fund you need depends on the type of emergencies you think will come up - if you rent your home then you won't need money aside for boiler repairs. If your family are in the UK you need less to get to them in a hurry if someone falls ill.

It also depends on your self control and whether this would drift out of your account on things which are not true emergencies.