We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Use help to buy ISA savings to pay off credit card/loan?
LadySave&Spend
Posts: 1 Newbie
*breathe* ok... here it goes....
Ok, generally speaking Martins advice and the forum here is amazing, especially about using savings to clear debt
But... what do you do when the only savings you have left is in a help to buy ISA for your first house but you also have credit card or loan debts?*
*Debt built up following several months of bad illness (with only a tiny amount of pay) resulting in an 11 day hospital stay, new expensive dietry needs, a split from my long term partner resulting in a rented house change and relative deposit monies etc, suddenly requiring some furniture (I had none) and swapping jobs meaning a delay in pay and a new requirement for a car, which in turn needed major repairs, and ofc depression following that - all happening around the same time.
This was me 12-18 months ago, im now 4k debt clear but still have plenty left...
I used some ISA money to pay off one card but still have 1k left in my ISA - what do I do?
1. do I keep it?
or
2. pay off another card debt?
Advice very welcome!
Ok, generally speaking Martins advice and the forum here is amazing, especially about using savings to clear debt
But... what do you do when the only savings you have left is in a help to buy ISA for your first house but you also have credit card or loan debts?*
*Debt built up following several months of bad illness (with only a tiny amount of pay) resulting in an 11 day hospital stay, new expensive dietry needs, a split from my long term partner resulting in a rented house change and relative deposit monies etc, suddenly requiring some furniture (I had none) and swapping jobs meaning a delay in pay and a new requirement for a car, which in turn needed major repairs, and ofc depression following that - all happening around the same time.
This was me 12-18 months ago, im now 4k debt clear but still have plenty left...
I used some ISA money to pay off one card but still have 1k left in my ISA - what do I do?
1. do I keep it?
or
2. pay off another card debt?
Advice very welcome!
0
Comments
-
What interest rate are you paying on your credit card and loan debts. If you have a large amount of debt my advice would be to clear it first as any debt will impact on you getting a mortgage anyway.
Providing you have not claimed your government bonus there is nothing to stop you closing your Help to Buy ISA and then reopening it in the next tax year (before November 2019 I believe) hopefully after you have sorted your debts out.
You need to start up an emergency savings account too which is not in the Help to Buy ISA.I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
Save £12k in 2026 Challenge £12000/£7500
365 day 1p Challenge 2026 £667.95/£296.46
Click on this link for a Statement of Accounts that can be posted on the DebtFree Wannabe board: https://lemonfool.co.uk/financecalculators/soa.php0 -
I'm going to take a similar, but slightly different stance to ES on this one.
Why not shortcut the emergency fund saving by using £500 of your HTB ISA money to pay down whichever of the debts is costing you the most in interest and retain the other £500 for a ready made emergency fund? (As you're renting £500 is sufficient for a "first tier" EF - once the debt is gone aim to increase to 3 x basic monthly spending).
Then complete a full written budget for yourself and work out exactly how fast you can get the rest of the debt gone?🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
£100k barrier broken 1/4/25
Balance as at 31/08/25 = £ 95,450.00. Balance as at 31/12/25 = £ 91,100.00
SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.6K Banking & Borrowing
- 254.5K Reduce Debt & Boost Income
- 455.5K Spending & Discounts
- 247.5K Work, Benefits & Business
- 604.3K Mortgages, Homes & Bills
- 178.6K Life & Family
- 261.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards