In arrears with mortgage/credit cards, what to do with 2000 euro.

Hi All,
Just a quick question. I am 1500 euro's (3 payments) behind on my mortgage, I have 3000 owing on one credit card and 1500 on the other.
I was unemployed for the past few months but am back working now earning about 450 (net) a week.
A family member owed me 2000 euro for a few years and now has paid up. What my question is, what would be the best way to distribute the 2000 euros ? Do I pay off all the mortgage in arrears first ? or pay a piece of all 3 ?
regards
Pablo

Hi Pablo, if it was me I would pay the 1500 credit card in full and close the account. I would then pay the 500 off the 3000 credit card and cut the card. Next, you should apply for a mortgage holiday explaining your situation to the bank and assuming you get the break, use that time to clear the 2500. Cheers S

+1

But I would also try to negotiate a settlement figure with the credit card companies, all they can say is no.

First, you must ensure you live within your means.
Destroy your credit cards and take out a laser on your account.
Then talk to your local MABS office and take their advice on managing your debt.

This is an ongoing issue - a badly planned personal budge will eat up that €2,000 in a month
I would tend to clear your mortgage, because now that you're earning again you may not get a "holiday".
Once you've reduced your outgoings to sustainable levels, agree a payment schedule with your credit card companies.

thanks all, will let you know how I get on .