Transferring Debt Help

thomas20

Hello, I am posting on behalf of a family member.

Not sure if this is in the right place, please bear with me and I hope this makes sense!

This is the situation she currently has a £3300 credit card debt which has interest being charged at 24.9%.

This person's son has taken a credit card with Nationwide and was going to transfer the balance for her so that she can pay it off quicker with no interest for 26 months.

But she is worried that if she was to pass away (hopefully this wouldn't happen, she's 65) that her son would be left paying the debt.

But they both live in the same house and are joint owners of the property. So if it came to the worst and she was to pass away in this time the money would have to come out of her estate which would be half of the house (if I'm right in what I'm thinking) so would it be his debt if he didn't want to sell the house to cover her debts?

Again hopefully this wouldn't happen the lady is trying to get the debt paid ASAP so was looking to save money as she can't get a new credit card in her own name to BT too.

Thanks for the help and let me know if use need more info or it explained clearer lol!

Tixy

He would become legally liable to repay the debt. So if she died or could not keep up with repayments for any reason (loss of income for example) then he would need to make payments.

They could write out a loan agreement between them that states that he has loaned her £X amount and that will be repaid at x rate. Therefore if she did die before it was repaid he would then have a claim on her estate.

In terms of the property situation if she died - what would happen to any of her debts (this one and others) would depend on whether they own the house as joint tenants or tenants in common. If she is likely to die with debts and no other assets then they may wish to take some advice about this.

thomas20

Thanks for advice. When you say write an agreement of a loan how would you do this to make it stand if this was to happen?