Pay off debt or start emergency fund

PM22

I have just received a letter saying Barclaycard are giving me a refund of £566
-something to do with interest and charges paid on my last DMP.

Shall I pay this off my 12k debt or start an emergency fund

currently with PayPlan and token payments until Jan 2023

[Deleted User]

If all your debt is with PayPlan and no interest is being added then I'd be tempted to put it away and keep an emergency fund.

Rob5342

You need an emergency fund to cover anything that crops up so put it in there.

PM22

Emergency fund it is then 

enthusiasticsaver

I agree that it is best to start off your emergency fund. 

solidpro

If you're already in a decent, manageable debt-paying routine then paying off a little more debt won't potentially create debt.

Not having an emergency fund could create debt. So I would create one whilst this magical moment exists. A massive thing to tick off in life's 'things to do' list.

RAS

PM22, if you are worried about emergencies can you split your emergency savings. Maybe talk through with an advisor at a bank within walking distance. 

An emergency account with a card - which you freeze in a bowl of water. This might fund a train ticket if you need to travel urgently, or a locksmith. Start with £100 in that account.

A savings account, which you ask them to lock so you have to go into branch. And get a note on saying do not offer card, on-line etc.

Andyjflet

Emergency fund of £1000 then start smashing that debt down.