ISA or pay off credit cards?

[Treadmillmom]

I was fortunate enough to have my ISA investment rescued when Icesave went down.
Intially, looking for a new ISA investment but just not trusting any financial institution right now my husband has suggested that in this econimic climate, it is better to be debt free than have savings.
An old fashioned girl, I like the thought of rainy day money tucked away but my husband feels this is pointless when I'm racking up interest on credit cards, he feels it's better to pay off my cards and then save the money I would of used to make the monthly payments. Sounds a reasonable arguement?
So, what do you think? An ISA or pay off my credit cards?

Oh my God credit cards - no brainer.

Just compare the interest you could earn with the interest you will pay. At a guess you could earn 2% and will pay maybe 15%. So you will be losing 13%.

NO BRAINER- PAY YOUR CC BILL....

I agree with your DH. Pay off the cards first. If you can afford to, then save the money.

I would pay off the CCs, particularly at the moment when interest rates on savings accts are pitifully low. Makes no sense to be paying a higher rate on a CC than you would be earning in savings.

Credit cards of course. No contest. And then cut them up

So you have £1000 in the bank at say 5% (if you can get it) so you have £1050

So you have £1000 CC debt at 15% - so you OWE £1150

You are £100 worse off

Pay it off & use the money you would have paid it off with to start saving again

....I agree with everyone else that ISA vs Credit cards is indeed a 'no-brainer'.

I have also come to the conclusion that ISAs in general are pretty rubbish. They may be tax free, but the tax on diddly squat isn't worth worrying about....

...this very day I have asked for my 1.2% interest ISA to be closed. No point. I am going to put it somewhere else. Anywhere else, really...

The only time you would be better off with the debt is if you use it leverage your income ie to buy and sell and the income you earn from using the money exceeds the interest you pay.

However if you spend the credit card money on clothes, shoes and toasters then it definately ain't worth it.