ISA Question

mstopham

Hi,

I have seen an ISA available through quidco with L&G.

This pays £110 cashback.

Which would be better, paying £50 off debts per month or paying £50 a month into the ISA until the cashback clears then paying the whole lot off the debt in a lump sum?

I currently have the majority of my debt on low or no interest until the end of the year.

andan

Hiya, in my opinion and this is only my opinion! If the interest on your debts is lower than the interest you would obtain on the ISA, then i would go with the ISA as long as you can afford to do that and won't be overstretching yourself. Is it a normal cash ISA or stocks and shares ISA? No doubt someone with more knowledge will be along soon. Its a nice way to make a bit of extra cash though.

IWantToBeFree_2

If the interest on the debt is lower than the interest you get in the ISA, you should pay the minimum payments, put the rest in the ISA and then once the rate goes up on the debts, withdraw from the ISA to pay the debts.

I would check the T&Cs though, you may have to forego interest if you remove monies from the ISA within a certain time limit.