Use S&S ISA to pay off debt?

[Howdidthathappen1]

Hi.

I'm going round and round with this and could just to with an outside perspective.
Buildings works went over budget as per!
We're in our 50s - have 40k in S&S ISAs that we put there from an inheritance 5 years ago and have an emergency savings of 6 months expenses.
Pensions are probably ok ish - he's got 30 years of various employers schemes dotted around. I've got 12 years of lgps - with another 10 years to work. No plans to retire for 10 years from either of us

So with the 20k we need to pay to finish the house - debt or withdraw from ISAs? I'm hardwired not to touch the ISAs but then 20k debt at our ages ain't small and will mean we can't add to our savings because of the repayments.

Wwyd!?

Pay or out of the ISA and then make regular payments back into the ISA to get the value back up.

I’m assuming you’re not already reaching the ISA limit on payments

Interest avoided is as good as interest earnt.

It’s down to risk.

Would you be happy if you paid off the debts, saved 5% a year in interest and then the investments you previously had went up by 20% ?

How happy would you be if you paid off the debt, saved 5% a year in interest and the investments you previously had went down 20% ?

Basically I’d view it as swapping the S&S investments for a guaranteed rate of 5% and decide from that. Some people would rather take on even more mortgage debt if they can get it and put it into more investments…

I'd weigh up much growth the isa has made and the penalties for removing it.

I have an isa that is up 20% so I would try and find money from elsewhere (interest free credit card etc) rather than touch it.

It's not all or nothing though is it? You could clear half £10k could be paid off in 5 yearsish if you pay £200 a month.