Pay off Cards ?

simmo36

I have £3500 of debt on credit cards and £ 4000 in my isa. What is best to do carry on paying the cards off at £100 a month each or use my ISA to pay the whole debt off. Any help would be helpfull. ( The wife likes the money in the isa because it looks like we have savings ) :-) :A

simmo36

They were interest free when i got them but now gone onto their standard variable rate.

WASHER

No point earning a wee bit of interest on the savings if you are paying huge interest on your credit cards. I say pay off the debt only if your job is secure for the immediate future to enable you to save an emergency fund.

You could of course put the £100 into an ISA each month after you'd repaid your debts.

simmo36

Thanks closed, i just read the link I just need to get the wife to understand my reasoning ( Pinted it out for her ) :money:

LeeSouthEast

Savings earning (max?) 3-5%
Debt costing 9-59%

No brainer. Pay it off or burn money.

dktreesea

Can we swap? You give me your Isa and debt and I'll give you my debt, alas not much in the Isa. I would LOVE to have an ISA big enough to pay off my debt. If you're not planning to use your ISa to clear your debt (definitely a good idea) pleeese donate it to me? :-)

psychopathbabble

cards... as everyone has said, the interest you pay on the cards far outweighs the interest on the ISA.
once you cleared the debt, you will soon build savings back up!

simmo36

All done today :j

Tesco interest 17.9 % loss
Virgin 12.9 % loss
Isa 3.5 gain.

total saving over the year £560.. Not much but better in my pocket than their's.
Just need to start saving again to get ISA back up again. Kept 1 card just in case and am going to close other one.

It,s a start anyway. :T