Pension vs debt

maggiesmummy

Hi
Hoping for some advice - I have around £14,000 which I am paying off at about £400 per month. All on 0% cc.
I'm 46 and am paying 5% of my salary into my pension. My employer matches that and would match up to 8%. Should I pay the extra 3% into the pension or into the debt?

Views please.
Thanks

fatbelly

Your debt clears in 35 months, which seems reasonable, provided you can keep the 0% deals rolling.

So if you can afford the extra 3% into your pension, then that is a sensible thing to do.

Wentthedaywell?

You're getting free money off your employer plus the tax advantage, so definitely worth doing this if you are managing your debt at 0% (or even at a low percentage).

The problem if you drop out of a pension is that you may not restart it for several/many years. There's always other demands on your money and you get used to the extra cash. Then it's too late to make the missed years up.

MallyGirl

in this scenario the pension wins - free money from your employer. Your future self will thank you for it.

maggiesmummy

Thanks folks much appreciated - I was thinking that and it seems a no brainer - just so debt focused at the moment I was a bit fixed on that not the long term future!