I’m 73 with $19k in credit card debt. Should I use my savings to pay it off?

February 25, 2026 — 4:01am

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I am a 73-year-old widow and part of the generation of stay-at-home mums who did not accumulate super. I worked full time until age 71. I now own a small apartment and have $100,000 in savings. Until recently this money was in a super accumulation account, but after reading warnings about a possible market correction, I became uneasy. At my age I don’t feel I have the luxury of riding out market downturns, so I withdrew the money and placed it in a high-interest savings account paying 4.5 per cent monthly. The interest helps supplement my age pension, particularly when large bills such as strata levies fall due, although I know inflation will slowly erode its value.

Complicating matters, I have a long-standing credit card debt of $19,000 at 13.99 per cent interest. I have been paying only the minimum for several years and, with only about $200 a month spare from my pension, the debt is reducing very slowly. I know the debt should be paid out, but I am frightened to do so because it would reduce my savings to about $80,000, which I have no realistic way of rebuilding. Would you have any suggestions?

It makes no sense to keep money in a savings account earning 4.5 per cent while paying 13.99 per cent on a credit card. That interest gap is costing you close to $50 a week – money you simply cannot afford to waste.

I suggest you reduce the balance outstanding to a token amount of $10, so the card remains open. If you pay it off completely, there is a........

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