What would you do

[BurgerHill]

I could do with some advice please.

DP and I have-for various reasons-accumulated about £8000 in credit card debt which at this moment in time is costing us just over £300 a month in repayments.

We have just over £5000 in a lifetime ISA.

Is it worth taking the money out of the ISA to repay a large chunk of the debt? We will also be moving in to my dads house rent free for a couple of months due to a change in our current living circumstances. We will. E putting money away the entire time we are there and should be able to save a minimum of £3000, however, we will need to use about half of this to move back out again leaving us with at least £1500 plus the £4000 that we would have from the ISA (I'm pretty sure we lose 25% for taking it out if we're not buying a house but I have had the ISA for over a year so don't know if that makes a difference.

Best case that leaves us with £1500 left, if we continue at the £300 a month that we are currently paying, that will be gone in 6 months allowing for interest.

We could then take the £300 a month that was going towards the credit cards and put it in the ISA and we'd be back to the same amount in just under 18 months.

Apologies for the life story but I didn't want to drop feed. Mt question is, do you think this is the most sensible thing to do and for any financey expert people, if I take the money out of my ISA and don't use it to buy a house, can I later go back to using it in the same way as I was before?

Many thanks in advance for any opinions/help that anyone can offer.

If the credit card isn't 0% then pay off the large chunk. If its 0% then don't bother yet

£8000 in credit card debt which at this moment in time is costing us just over £300 a month in repayments.
Is it just one card? If not, then break it down in to how much is on each card, as you may find refinancing a high interest card to a fixed term loan to be an option. Then paying off the lower balance cards.

The LifeTime ISA is subject to a 25% charge if you withdraw it, except in exceptional circumstances (see your LifeTime ISA documents). So if £5000 is the total current balance, you would lose £1,250.
I would avoid doing that if at all possible... instead I would stop paying into it if that is an option, or reduce to minimum monthly amount permitted. Then look at paying off the credit cards from what you are able to save by living at your dads.

Big Number Maths... I agree with the 6 month plan but what happens when you are no longer at dads?
Month 1, starting debt £8000, Moving fund £0:
£1500 towards debt. Debt now £6500. Payment £300
Month 2, starting debt £6500, Moving fund £1500
£1500 towards debt. Debt now £5000. Payment