It should be feasible to pay back the $10.000

It should be feasible to pay back the $10.000,- in a couple of years. What I would try to do is refinance your debt complete, so try to get $4000,- from either your parents (in other words raise it to $10.000) or somebody else. If that is not possible refinance with a company like or something like that (just Google lower my debt or something). I would recommend paying your parents a market efficient interest rate like 5% or 6% to reward them for helping you.

Then assess what you can save per month to pay back your parents. Don’t spend any money on things you don’t need and be very strict to yourself in the first couple of month to show that you can do it (set targets, don’t buy $4 frappucino’s etc.). Every penny counts.

Try to lower your monthly bills. Plan your budget. And again, be strict.

what i did once was call to verify my interest rate. it was 25%!!! I told them i was surprised it was so high becuase my other cards are around 10.. a few at 6 and one at 0 (i didn’t say those were bc dh is military and deployed LOL) but she talked to her supervisor and lowered it to 14% and that was just by calling and asking.. worth a shot!

It’s usually best to go after the debt with the highest interest rate first. The higher the interest rate the more you end up owing. I’ve got a debt I’m trying to pay off but the interest alone consumes most of every payment so that sometimes less than $10 goes toward the actual debt. That means it will take me longer to get it paid off, probably years longer. Before you decide what to pay on look at how much interest each debt, loan, or bill will cost you.

Actually there are 2 predominant schools of thought and I chose a third option.

Option one, like Vivian wrote, choose the one with the highest interest rate. By doing this, you will save a tremendous amount of money in the form of interest expenses. But what if it has the highest balance?

Option two, Dave Ramsey’s baby steps. Pay off from least to most and get a snowball effect going. Great idea, in the long run, it may end up costing a whole lot more in finance charges, but you can still get through it.

Option three that I chose. I chose the one with the highest monthly minimum that I could pay off in the quickest time. That was my wife’s car. This freed up $400 a month to apply toward the option two. So, if you have the means through some kind of savings, windfall, or whatever, I suggest option 3. This gives you the good feeling that one is paid off and you are well on your way towards everything else.