Yes, you are allowed to save money, but I believe you have to do it from any money left over from your other allowances.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Hi Lizzie. It is a good idea to save money during an IVA and if possible you should open a savings account. Allowances are made each month for the likes of car maintenance, medical, dental, optical and clothing. These allowances are not needed every month so the money can be kept until it is needed. This prevents nasty shocks when the car breaks down or you require dentistry and means the IVA is less likely to go into arrears.
We actively encourage all of our clients to take out savings accounts in which to place their contingency money until it is required - just as Michael has already explained. It can be very rewarding to seeing a small balance getting bigger - especially when you may have been so used to relying upon credit in the past.
I agree it is rewarding to see it growing but I wonder how many are like me and loathe to take it out! I get to the point of paranoia that I can't spend it!
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
I save my £50 contingency every month along with my tax and insurance allowances.
I had a few car problems a few months ago and I was pleased I had saved my contingency as it just about covered the repairs. It's also nice to treat yourself to a new top or something out of it every now and then.
