Credit card debt solution

HELSINKI77HELSINKI77 Forumite
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Morning, I have got 3.5k debt  0% credit card and 2k I owe to my parents which I can repay anytime (car replacement). No other debts apart from the mortgage I repay monthly. I was thinking about taking 6k loan to repay my card and parents. Any advice? Thank you

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  • WYSPECIALWYSPECIAL Forumite
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    If you can repay your parents anytime is that because you have savings?

    why would you want to move 0% debt to a loan with interest? can you clear it within the interest free period?


  • GrumpelstiltskinGrumpelstiltskin Forumite
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    Do not take out a loan, all you would be doing is moving the debt to a more expensive solution.

    What is your situation?

    Living with parents? Renting? Single or with a partner?

    Give us some more details and we may be able to suggest the best way forward.
    If you go down to the woods today you better not go alone.
  • HELSINKI77HELSINKI77 Forumite
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    Thank you. Yes within 0 interest period ending in 6 months. Wrong use of words, my parents don't mind when I will repay them. Living with a partner (he is paying all utility,telecom, council bills since on a much higher income, we only split mortgage 50/50,I pay for all food and child school transport ). We have separate accounts though so he doesn't exactly know how much I have on my credit card.I just keep spending each month on my credit card, topping up my salary of 42k per year as its never enough to pay for school trips, uniform, books . I literally dread Christmas and summer season as it just adds more to my debt. Thought a loan would clear my credit card and I could repay it over 3 years without a constant worry that I owe over 5k.
  • GrumpelstiltskinGrumpelstiltskin Forumite
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    When does the 0% deal finish?

    You may be able to get another one but the best way forward is to very seriously look at every penny you are spending and try and reduce it down so you can throw extra at the credit card.  

    Whatever you think you must stop spending on the Credit Card.

    If you earn £42000 and your partner much more you are well above average income and the only way forward is a complete rethink of your finances.
    If you go down to the woods today you better not go alone.
  • HELSINKI77HELSINKI77 Forumite
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    Wasn't sure when it ends but just checked on the app and 0 interest till 01/05/23. For 5 years we had saved every penny for the house, not going anywhere and now once we got it we both feel like we must enjoy the life. Sadly enjoying it proves very expensive for me. 
  • GrumpelstiltskinGrumpelstiltskin Forumite
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    You have to find ways of enjoying life without it costing a fortune, they do exist.

    Even during the school holidays there are many ways of doing things with your child / children that don't cost money.

    Go to the Old Style board  Old style MoneySaving — MoneySavingExpert Forum

    They will give you loads of ideas of how to cut your food budget.
    If you go down to the woods today you better not go alone.
  • foxglovesfoxgloves Forumite
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    Agree with @Grumpelstiltskin that with a well above average salary plus an additional larger one coming into the household, a £5k debt should be pretty straightforward to pay off simply from living within your means. You need to budget to your income, including a decent wodge allocated to the debt to get it gone asap. Basically, as a rule of thumb, if you are having to use a credit card to buy whatever it is, extend a loan or take out another or go into overdraft, then you can't afford it, because that's somebody else's money, not yours.
    I say this not in judgement, as my partner & I had to confront our own debts several years ago & adopt a practice we had previously rejected - the concept of budgeting. It has been a game changer for us & there is simply.no way we'd return to our old borrowing mentality.
    What you earn & things like school uniforms (entirely foreseeable expense) & trips aren't the problem here. It sounds as though the issue is that you outspend your available income, & that.comes down to you needing to work on establishing a viable monthly budget. 
    I wish you luck with it.....it's entirely possible & you can still live comfortably if you budget properly.
    F
    "Begin doing what you want to do now. We are not living in eternity. We have only the moment, sparkling like a star in our hand and melting like a snowflake".
    Sir Francis Bacon 1561 - 1626 (Philosopher & statesman)
  • HELSINKI77HELSINKI77 Forumite
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    Thank you both. My and my partner used to be on the same salary but since he got promoted, I feel like a poorer half hence sometimes spend more so he doesn't have to pick up the bill all the time. I will sit down after work and try to list everything I could go without until the debt is paid. Sounds like a joke but I actually work in Finance and can't even manage my budget. Thank you again @foxgloves and @Grumpelstiltskin
  • NaomimNaomim Forumite
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    You'll be surprised how many of us work in finance but struggle with our own finances! 

    However as everyone else has said, do your budget. Don't get a loan when you have interest free period still available. 

    Good luck 👍 

    Naomim 
    Credit Cards
    NOV 2019 £33,220.42
    March 2022 £23,150.56

    Tilly Tidy 2022 Total YTD £84.28
    Here's my diary: A Ditherer's Diary Again
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