Debt versus help to buy ISA

Do people think that it’s a good move to keep paying into an ISA HTB whilst having credit card debt? My workings show the 25% tax increase given with the HTB would outway monthly payments with interest on Cards, however not sure my workings are true? 


  • RASRAS Forumite
    31K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    Your issue down the line might be that your credit card debts prevent you getting a mortgage even though you've got a deposit. At best it will reduce the amount you can borrow.

    So you need both.

    Do an SOA, even if you don't share it here, and set about tackling that debt.
    The person who has not made a mistake, has made nothing
  • ManyWaysManyWays Forumite
    92 Posts
    Second Anniversary 10 Posts
    The HTB 25% is a one-off and the next year you get nothing.
    The 19% interest (or whatever you are paying) charged by a card happens every year. 
  • lopsyfalopsyfa Forumite
    452 Posts
    Sixth Anniversary 100 Posts Name Dropper
    I agree with the previous posters generally but there may be cases where it makes sense to pay into the help to buy ISA.

    If your credit cards are on 0%, it may make sense to pay into HTB and then plan to pay off the balance before the promotional rate ends. Otherwise, no logic in paying the HTB while paying interest on the credit card since, as mentioned above, the interest on the credit card is continuous (and compounding) while the HTB top-up is a one off. Also, the credit card debt may affect your mortgage affordability.
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