Paying off Credit Cards

SummerHeat

We currently have three credit cards (I know what idiots we have been having so many)

We have nearly finished off paying one (it was the smallest amount and I hope we can clear it next pay day)

My parents have offered us a 0% loan to clear the other two.(yes, I realise how lucky we are to have this option)

My question is, is there anything we should be doing to minimise what we pay back, or is it a case of paying the balance as it stands and waiting a month to see what interest we owe them ?

I have read a thread about full and final payment but I am assuming this is only open to people currently behind in their payments ?

Thanks

Tixy

Hi Summer

Yes full & final payments only relevant if you are behind or have defaulted on payments.
Really for yourselves it should be a case of just paying what is on the statement and then paying off the residual interest next month.

How kind of your parents - just a note of warning, it might be sensible to draw up a basic agreement with your parents to say the loan is 0% and to set out the terms you will pay it back over. Whilst it might feel unnecessary with family, it is a good idea and shows that you are serious about paying the debt back. Families have fallen out over much smaller things.

One other option (which you may want to consider) is whether the card you are going to clear would then offer you a 0% balance transfer deal so you could transfer one of the other cards to that card and then repay within the promotional period - that would then reduce that amount you needed to borrow from your parents.