fbpx

Can I Still Save Money While On Debt Management Plan?

There will come a time when unexpected circumstances will occur. While you are on a DMP, you must think ahead of time and look for possible ways to cover unexpected costs. If you don’t have an emergency fund available to cover the possible costs, you might turn in getting new credit or loan instead.

Obtaining a new credit or loan may break the terms and conditions of your DMP, depending on your DMP provider. You may also take a high-cost credit as the circumstances asked for it.

This is the reason why it is important to save a portion of money each month. So, instead of taking a holiday while on a DMP, you might save this money for an emergency instead.

Moreover, you must check the guidelines of your DMP provider and see how much amount you can save each month.

The Idea Of Help To Save Scheme

If you’re one of the individuals belonging to the low-income group, you can benefit from the Help to Save scheme. It is a savings account backed by the government. It works by boosting your savings. For every £1 saved, you’ll be able to boost your savings by 50p.

Can I Open A Help To Save Account?

If you are living in the UK, you can open a Help to Save account under the following conditions:

You must be entitled to or receive Working Tax Credit or Child Tax Credit payment.

You can claim for a Universal Credit and the income of your household from the assessment last month should not be less than £542.88. Also, the amount that you’re paying for Universal Credit is separately summed from your household income.

In case, you abstain claiming from benefits, you can are still legible to use your savings continuously.

Besides, you can also apply for the account if you happen to live overseas and:

  • crown servant, or a spouse or a civil partner of one
  • member of the British armed forces or a spouse or civil partner of one

You can also use your savings account though you have stopped claiming for such benefits. If you possess a household award of tax credits or Universal Credits then both you and your spouse are permitted to open a new one.

How Much Do You Have To Pay For A Help To Save Account?

The maximum you can save amounts to £50. There’s no need to make the minimum payment or pay into the account each month to be entitled to the bonus.

Getting Money From A Help To Save Account

The Account remains open for four years until such time that you can withdraw savings from your bank account or close it anytime you wish to. However, you can only open one Help to Save Account, which means you cannot open another in the future. Besides, you will not get the available bonus on the succeeding month if you prefer to close your account early.