20k in credit card debt. What to do?

[mountain dentist]

A family member has informed me he has 20k in credit card debt. I have never personally known anyone who had credit card debt amounting to more than they could handle with monthly payments. Obviously, the first step is to make a change in lifestyle, which he has taken steps toward. Almost 30 yrs old, he just moved in with his parents and will not have to pay rent or any utilities for the time being. His debt consists of 20k on 4 high-interest credit cards. My question is, what should he do? Can he take out a lower interest loan to pay it off? Can he do a balance transfer credit card at 0%?

If he can simply do a balance transfer, are there penalties or credit dings? Can he transfer the debt of all 4 cards?

Thank you

[snogirl]

1. Stop spending
2. Know where money is going & find the leaks.
3. Cut out all leaks like expensive gym or eating out, expensive booze or expensive car
4. Develop a budget/plan of Action. Ie the 0 percent transfer like Chase Slate or snowball method.
4. Execute plan keep a daily notebook of all   spending. Buy a coffee? Write it down. Pay your cell bill? Write it down. Get gas. Write. It. Down. The exercise is to open the spenders eyes to where the money is going on a daily basis. If the 20k debt was medical or schooling that's one thing. But usually it's emotional and implulsive. The "why" of spending is as important as the what. There are no quick fixes. In my experience, it had to be pants on fire painful to finally change my spending.

He's lucky he has a rent free option so to accelerate repayment other options could happen like getting another side gig & selling unused items and throwing that his debt.
I myself was drowning in debt and followed a combination of methods really digging into the how what why. Now am debt free and fire'd so yeah i've been there done that now finally an adult at 57.

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[GizmoTX]

You can’t borrow your way out of debt, so while reducing the interest rate will initially lower the interest expense, doing this has to be combined with an aggressive pay down. Balance transfers are usually not free & I suspect consolidation loans aren’t either — probably a wash.

There’s a temptation to use the rent & utility free as long as possible while not seriously attacking the debt. The parents are subsidizing the debtor, so there should be a deadline.

All credit card use should be stopped immediately — don’t feed the fire. Cash from now on.

The family member better be working a full time job, plus some side gigs to maximize income.

[Sibley]

In addition, the family member should be contributing to the household in labor, since they're not in money. Which means: cooking, cleaning, whatever maintenance/repairs, in general helping to keep the household smoothly functioning.

[MrThatsDifferent]

We could give you all the advice in the world and what, you’re going to march over and say, hey, the people on the internet said you should do this! And this person will? I doubt it. You want to help them? Say: hey, I’ve heard you’re in a lot of debt, that sucks and will make life tougher for you. I don’t want to tell you what to do, you’re an adult. I have discovered this website and community that’s pretty amazing and turned my finances along. When I have questions or want advice I just ask and people are generous with the info. Here’s the site if you think it could help you.

And that’s it. That’s where your obligation, if there was any ends. Good luck.