So my father and I are somewhat in a sticky situation. He has accumulated roughly $30k debts on his credit cards. He makes decent money now but the problem is paying about $650 a month in interest alone. On the other hand, I have a car loan with about 22k left to pay off. I have 11k in my tax free savings that I have just been saving up with no real idea what to do with it. I also have 4.5k on my own credit card.
Now to resolve my card loan I have just got a new credit card and did a 0% transfer for 12 months. I'm splitting up the 4.5k into 12 payments and will take care of it that way. I save up about $2k a month which leaves me with about $200 breathing room after I pay for my car, insurance, and few other bills.
The thing is I do live with my parents still and we rent, we do not own anything. My dad has gotten into such a bad spot due to trying to put me and my sister through college, and it worked so I am grateful and as such I'm trying to help him out.
My plan was to go ask for a bank loan tomorrow for $30k over 5 years. I figured they would charge about 10% interest which is still far less money than he is giving now on the credit cards. With about $60k/year salary I am hoping I will be able to get it despite my car loan. I am going to another bank for it though. My dad did apply for the 0% balance transfer cards, but he got declined.
My plans are to buy a house hopefully in 2 years, with my current rate of saving I think I can get there, but in the mean time my dad really needs to get out of these debts or he won't be able to afford the monthly housing payments.
Having said all this, am I doing the right thing? Is there a better way to get out of this situation, my goal is to get my dad and me debt free and collect for a down payment for a house.