£3k on credit card, savings in ISA - should I use them to pay off?

Clairy

Hi ya

My husband and I have been really good and cleared £2k of overdraft since the beginning of the year.

We have 4 months salary saved in a stocks and shares ISA, but we also have £3k on a credit card (which we used to buy a new kitchen)

I am sure we can pay this off by the summer, just by moneysaving. However, I wondered whether we'd be better off using our savings and then topping them up again.

My husband is we'll get back less than we paid for them as our ISA has taken a massive hit recently.

Could anyone shed light on this for me please?

RAS

What is contained in the stocks and shares ISA?

Your husband is right, the stock market has takne a real tumble so you could find yoursleves only getting back £2000 if you sell the stocks and shares rather than £4000. That loss is not realised un til you sell and if you keep them a few years, you could end up getting back the full £4K and some more.

Clairy

Yes, that makes sense, it's as I thought.

I will keep on cutting back then. Cheers

posted_2

It's highly unlikely that the stock market is going to recover in the next 6 mths more than you are paying in interest, if anything, it is likely to go down further.