# Bonus - start pension or pay CC?



## Crea (14 Sep 2012)

My husband is due to get a €14k bonus at the end of the month.
We currently have €11,300 in credit card debt between 2 cards (one with 9.1K the other with 2.2k). Currently we are paying €400 into the cards and just keeping on top of the interest although we are planning to increase this to €550.

My husband is 48 and doesn't have a pension. He was hoping to put the money into starting a pension and pay into it regularly with the company contribution at 7% (though not on bonus).

I'm wondering are we better off starting the pension and getting the full amount or putting the taxed amount of €6.9k into the credit card?

The problem with the cards are that the larger amount is mine and i'm not working so haven't been able to transfer to 0%. Would it be possible for us to transfer both cards into 1 card under both names at 0%?


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## NOAH (14 Sep 2012)

never ever have debt on cc's interest rate is in a word EXTORTIONATE. It should be cleared immediately and never  ever incurred again, ie pay off each month in full, money saved would earn a good pension. do it now.  But use the cards to the max as you get 6 weeks credit.

and the answer at the end is no.  as a point of interest(sorry) look closely at the amount of interest you are actuall paying each month on both of these cards and that is the amount you will save each month by paying the full debt now. It may be easier said than done but at least get rid of one card in full.  Then look at transferring to a 0% but they usaully last only for a fixed period ie 6/8/10 months.

noah


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## 44brendan (14 Sep 2012)

No brainer!! Pay off this CC balance ASAP.


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