Would it be detrimental for my credit/financial future for me to take out a 10k loan to help my parents pay off their credit card debt? If so, are there any alternative solutions?
Some background information; my parents emigrated to Canada from Poland/Czech Republic in their early 20's and faced financial hardships and continue to work low level manufacturing jobs. In the 1990s they amassed credit debt to make ends meet while raising 3 kids and eventually declared bankruptcy. As of today they have around 10k worth of credit card debt that they are unable to pull themselves out of. They are making minimum payments on a wide variety of maxed out (no longer used) credit cards with insanely high interest rates. They have tried to secure traditional debt consolidation loans but are always rejected due to their credit scores. I'm 23, working full time, living at home making 35k a year and have been pre-approved for a 3 year, 10k loan with an 10.99% interest rate (12.97% APR). The estimated monthly payment would be $338.21. My parents would be capable of making these payments once they use the loan to pay down their existing debts so I'm not considering this an additional monthly expense rather I worry about the impact on my credit score and ability to take out another loan/mortgage down the line.
Submitted October 13, 2017 at 10:05AM by throwMB4 http://ift.tt/2z6qshA
