Saving whilst having a dmp

Jimmy333

Hi
I am curently on a dmp thats was agreed by all my creditors(all of them charge 0% interest on all debts). If everything goes well i should be debt free in 2021.

My possibly very stupid question: I have received a small payrise( £100 per month),should I use it to clear my debts faster or use the money to open a Lifetime ISA /help to buy ISA-as i would like to have a deposit ready for a house when my defaults clear from my credit file?-i know its 5 years away but it seems a good ideea to use the goverment 25% yearly bonus whilst i pay no interest on my debt.
I am being an idiot to think its a good thing to do?

thanks

sourcrates

Hi,

First off, I hope you are using a free provider for your DMP such as stepchange, and not a company that charges for its services ?

It would be nice to clear the debt quicker, but you should also give thought to what comes next, I would say do whatever you feel is right, maybe split the money 50/50 ?

Jimmy333

Thank you Sourcrates ,yes I am having my DMP self managed.

Any advice on a good ISA to start?,preferably something that i can apply and check online

sourcrates

Jimmy333 wrote: »

Thank you Sourcrates ,yes I am having my DMP self managed.

Any advice on a good ISA to start?,preferably something that i can apply and check online

Not really my area of experience but maybe try your own bank or search on MSE ?