Pension or credit card??

[lancslass17]

Hi,
Just before i had my DS I opted out of pension scheme as meant longer mat leave. We now have nursery fees bigger than mortgage! I was going to wait until 30 free hours kick in to opt back in.

However there is an option to pay 50% contributions (it's LGPS so highly contributed too by employer) which I could now afford

Or
I could use money to pay off credit card (currently 0%) would only pay half off by end of current deal making the payments I am now.

Would you pay into pension or pay more into credit card debt?

Can you do half and half? Starting up your pension as soon as possible is a very good idea as it (should) increase over time, but not when you’re carrying debt that will soon cost you money.

I was in the pension for 14 years before opting out

No can only afford to pay into 5050 scheme or credit card at min. They dont do a 25 scheme.

Definitely pension. You don't know what the future may hold jobwise and any time in an LGPS is well worth it. Especially if CC is 0%

Pension. Your credit card is 0% and when that deal ends you could look at moving the remaining debt to another 0% credit card. With the LGPS you will have life cover as well as building up more pension.

Pension! When your 0% ends, switch to another one.

Pension. Pension. Pension. Pension. Pension. Pension.

Pension, if you don't contribute, you're throwing away employer contribution and tax relief.

You're likely be able to get another credit card deal when this one ends so plan to do that.

How much credit card debt is there?

Just under £7l on credit card.

Pension. Opting out is usually a bad idea, opting back in - particularly when it is LGPS! - a good one.

And is straightforward to transfer your debt onto another 0% card at the end of your deal.

Do the standing order trick for your credit card and you'll have it paid off faster than you think. As long as you don't add anything else to the card.

Look at how much the minimum payment for your credit card was at the most recent bill.

Then set that amount up as a standing order and let it run until the card is cleared.

And as I said before pay into your pension

I'll see if I can find a link about the standing order trick.

Standing Order Trick for Credit Cards http://www.mumsnet.com/Talk/legalmoneyy_matters/3432890-Standing-Order-Trick-for-Credit-Cards

SPREADSHEETS for : Debt Control, Budgeting, Mortgages etc http://www.mumsnet.com/Talk/legalmoneyy_matters/1987219-SPREADSHEETS-for-Debt-Control-Budgeting-Mortgages-etc