Pension Contribution or Credit Card Debt
Hi,
I warn around £70k. I have a £25k credit card debt. £20k is on interest free card and I'm pay £250/month to bring it down. £5k is on day to day credit card at 11% interest. I'm paying £1000/month towards it.
I am due to receive £15k bonus from work; it will be taxed at 45% in Scotland but I have the option to put it all in my pensions account and get it tax free.
Do I take the tax hit and prioritise paying off my debts or does it make sense to put it in my pensions account? I'm 34. My pension account has around £120k.