Help with debt

Immy697

We are 8.5k in debt on credit cards then owe one parent 3k the other 7k.

i don’t even know where to start, credit card debt is on 0% interest. 

Help?

ManyWays

Are you struggling to make the card repayments? How urgent is it that your parents are repaid soon? It would help if you say more about your situation.

Immy697

We pay the minimum off each month fine, I just really want to do more than that, the 3k is getting paid off at a rate of £130 a month and currently the 7K isn’t getting paid off at all but I do need to start paying that next month. 

ManyWays

Is your credit score good enough to get 0% balance transfers? 

Immy697

ManyWays said:

Is your credit score good enough to get 0% balance transfers? 

It is on 0% for the next 22 months 

sourcrates

Credit cards are non priority debts, as are the loans to your respective folks, but I`m guessing there is pressure to keep the peace in the family bubble.

You say you don`t know where to start, I`m assuming you cannot afford to service everything, so you are wanting to know your options, is that about it ?

We need to know and understand your circumstances first, so if you can complete the SOA in my signature, as best you can, it will give us a better understanding of how to proceed.

enthusiasticsaver

If the debt is on 0% and you are easily able to  afford minimums the situation sounds under control.  Once you start repaying your parents though will that impact on how much you can repay to the card? 

If you are repaying the £3k to parent 1 at £130 each month it will be repaid in just under 2 years.
How much are you able to repay your other parent with the £7k?  If you pay them the same as your other parents for the next 2 years then redirect the £130 from the £3k debt after it is repaid then that will be repaid in 3 years and 3 months.  

To clear the £8.5k debt on the credit card within the 22 month period before they start charging interest that would be £363 per month which I assume is too high.  If you pay less then you will need to do another BT deal when the deal finishes. 

I would do a soa to see how much you can realistically afford to repay  your parents and have available to throw at the credit card. There is a link in my signature.  I would stop using the credit card regardless as that confuses issues as some ends up at 0% and others on standard interest rate.  Put the card away or cut it up. 

How did the debt come about in the first place?  General overspending or some other reason?  Have you addressed the reasons for this? 

MattMattMattUK

You could post an SOA so that those who are good at dissecting them can work out where you could save money to increase your debt repayments, which would be beneficial.

https://www.lemonfool.co.uk/financecalculators/soa.php