For people experiencing debt problems, no matter how serious, putting some money aside for the future often isn’t a viable option. There will always be bills, debts and other amounts to pay, and these are more of a priority than topping up a savings account.

When to start saving

The best thing to do if you are in debt is to focus on paying back what you owe before starting to save. However, once you’re in the clear or you have a debt consolidation plan in place so that your monthly repayments are manageable, you can then start to think about possibly saving for the future.

Why save?

People find themselves with debt problems due to poor money management, where they have no savings to cover unexpectedly large bills or their income is less than their spending. Once you’ve faced your debt problems and come out the other side, starting a savings account is the next step to becoming more responsible with your money.

How to start saving

1.       Open a savings account with a bank or building society, using comparison websites to find the one with the highest interest rate. You can also consider putting your money in a cash ISA to earn higher, tax-free interest.

2.       Remember to start small – Only pay in what you can afford each month (setting up an automatic transfer from your current to your savings account is the easiest way to do this) , even if it’s only the smallest amount. It all adds up! If you’ve been paying £200 into a debt management plan each month, try paying this straight into your savings account once your plan is complete. That way you are using the discipline gained from working to a restricted budget to help you build-up a nice little nest egg.

3.       Review your savings regularly, to see if you could be saving more if you situation changes or if you need the money to keep on top of bills.