helping a debt ridden sister

adviceneed_2

Hi, My sister has nearly £6k on a credit card and is paying around 20% APR so her minimum payments are barely covering the interest. She also has other cards which she is in the process of clearing off. Nobody will give her a new credit card with 0% on balance transfers so I was considering getting one in my name for her. I wondered if....A. Is it ok to do this, legally? B. Will they transfer the balance from a card in a different name? C. I've never built my rating up as I pay everything off as soon as it comes in so I wouldn't be able to get nearly £6k as a credit limit, WHAT CAN I DO??? D. What are my sisters/my options? Thank you.

happy_bunny_2

Probably best to post this on the debt free wannabe forum, you will get good advice on there

CLAPTON

a. Most cards will allow you to BT from some-elses card as they only check the card numbers ; however a few stipulate that it can only be cards in your name.
Note that you can't BT between card from the same supplier
b. see a.
c. rubbish ; the credit limit has nothing to do with whether you pay in full each month.

Can you afford to pay 6k worth of debt off if you sister fails to pay; once you BT then the debt is YOURS and not hers;


otherwise your sister could post up on the debtfree wannabe board and seek advice about cutting her spending and maybe increasing her income

sure_thing

If you take on your sister's debt it becomes your debt. Read the sticky in the loans section about lending to family and friends then make your decision after you read some horror stories.

antrobus

adviceneed wrote: »

Nobody will give her a new credit card with 0% on balance transfers so I was considering getting one in my name for her. I wondered if....

A. Is it ok to do this, legally?
B. Will they transfer the balance from a card in a different name?

I'd say that those were very specific credit card questions. To which I don't the answers as it happens. If I was forced to guess I'd say; A. Yes, and B. No - but I wouldn't take any notice of that. I'd wait for somebody else to come along who knows what they're talking about.

Of course, whether or not it's a good idea to take on debt to 'help out' a family member is another question entirely.

ILoveChocolate

Hi

From personal experience be very very careful....., I would say take only half she can then make higher payments to her cards, make sure she then cuts the cards up and doenst keep spending. My sister eventually entered into an IVA but kept a next store care (against the IVA) but to keep her shopping addiction going, ahhhh, found out last year my Dad had also helped her out but it was all kept quiet. It will be your debt and if she losses her job it will become your debt or says she cant pay,:eek: and this does happen sometimes.

Her IVA is over and she is still a shopper although on a much lesser scale.

It will be your problem I wouldnt take on the full 6K only my thoughts to help you think carefully about it.:)

Tixy

Rather than take on your sister's debt into your name you could help her by helping her write out a budget to see if she can manage her debts and if not pointing her in the direction of the debt free wannabe board and the debt advice charities.

shron

can anyone tell me how to start a new thread

Tixy

On the relevant forum board click on the icon which is on the left hand side, above all the threads.

ria.c_3

I'd be very surprised if you can just use your card to pay off someone else's - I'm sure they check the name it's in. It's for exactly this reason that I haven't attempted to do exactly that...

Ria

lee1985

antrobus wrote: »

I'd say that those were very specific credit card questions. To which I don't the answers as it happens. If I was forced to guess I'd say; A. Yes, and B. No - but I wouldn't take any notice of that. I'd wait for somebody else to come along who knows what they're talking about.

Of course, whether or not it's a good idea to take on debt to 'help out' a family member is another question entirely.

Clapton is right, the answer for is yes, most lenders will allow you to transfer a balance to another person but one or two lenders do state that the card must be in your name.

But the important issue is what many people have mentioned here, the fact that if the OP takes on her sisters debt, the debt will 100% lawfully be hers, and even with the best solicitor in the world and a speech from her sister saying it is her debt/fault, there is no getting out of it, the OP will be liable to the extent that she could even lose all her assets (home and/or personal belongings) if the lender chose to make her bankrupt or bailiffs were called due to non-payment of the debt.