Getting credit card to pay partner's debts

dannyiddo

Hi all,

Do not want to get into a moral or social argument here, but just wondering about the best way to pay off debts in my partner's name. They have a few high interest loans and credit cards.

We have a mortgage together and getting married in 3 months.

If I was to get a credit card in my name, could I then use that card to pay off the debts? For example, by logging into the accounts paying the balances. Would these be classed as 'purchases'? So I would get the 0% on purchases offer?

Or would it be much better to get a loan? It just seems credit cards will be cheaper. We can then pay the money back interest free over the next two years, rather than paying APRs ranging from 20-40% !!

Thanks

SYHR

If you can get a credit card that's a long enough 0% on purchases, then I'd say it's worth doing. Alternatively, it may be an option to take out a loan at the low APR being offered by some banks at the minute. I believe if you're borrowing between £7,500 and £15,000, you'd be looking at potentially between 3-4% APR, which is significantly less than what you're paying at the moment.

dannyiddo

Thanks for the advice! But if I do choose the credit card route, the payments to clear the other debts will still count as 'purchases' anyway? I just wasn't sure about this.

I was just thinking that if they do, why don't people just use the 'purchases' offers to clear balances, rather than balance transfers?

Obviously I can't use 'balance transfers' as the outstanding balances aren't in my name.

SYHR

dannyiddo wrote: »

Thanks for the advice! But if I do choose the credit card route, the payments to clear the other debts will still count as 'purchases' anyway? I just wasn't sure about this.

I was just thinking that if they do, why don't people just use the 'purchases' offers to clear balances, rather than balance transfers?

Obviously I can't use 'balance transfers' as the outstanding balances aren't in my name.

There may be a very good reason why people don't. Unfortunately, I'm not really an expert in this field, and I only offer advice from previous experience I'm afraid! Getting hold of a 0% card would be your best bet I would think.

[Deleted User]

dannyiddo wrote: »

Obviously I can't use 'balance transfers' as the outstanding balances aren't in my name.

Not sure why you think that. There are very few lenders who will prevent it.

You will obviously need a money transfer option for the loans though.

Nasqueron

You can do a balance transfer from a card not in your name, double check the forum though to see if any of them do ask - I have a Barclaycard Platinum and don't recall it needing anything about the card holder, just the card details. You won't know how much you can BT until you get the card though, but any limit will help save interest

You will need a card that does money transfers if you want to put money into the bank to pay off a loan.

While I would not moralise on doing this sort of transfer as the marriage indicates long term commitment, you do need to help your partner control their spending to help them avoid getting into a cycle of running up debts again.

glentoran99

I don't think it will be as simple as you think, I don't think you can pay loans and credit cards with another credit card,

dannyiddo

Yes, this is the reason for me starting the thread. I wanted to be sure I can use a credit card to do this.

I feel like you must be able to? There are stories all the time of people clearing other people's debts on credit cards....?

sjbrun

I balanced transfered my partners debts onto my cards to get a 0% deal to save interest.

I did transfers on barcleycard and MBNA.

MBNA approved it but phoned me up to check the amounts of the transfer and to check that I knew I was transferring someone elses debt.

Not all cards let you transfer balances onto it that aren't yours.

Dobbibill

A purchases card will be of very little use to you as there are limited companies that allow you to pay credit with credit. (I think the odd catalogue type account allows it)

For Credit Card debt you would need a BT card.

For loans/overdrafts type debt you would need a MT card.

Moving the debt is not clearing it, it's just moving it so make sure you address the cause too.

Try the eligibility checker but remember it's a guideline and not a guaranteed acceptance.

You are aware that they then become your liability, reported on your credit report and you will have the late payment markers/defaults/CCJs if they were not paid though.

Vortigern

Dobbibill has given you the best answer so far. You need a Balance Transfer card to pay off your partner's credit card debt. Note that Tesco's BT card does not allow you to transfer someone else's balance.

You need a Money Transfer card to pay off loans and overdrafts.

0% on purchases cards are not much use to you. You could use a 0% purchases card to pay off a Very catalogue debt, or use it to cover your day-to-day spending, while you use your income to pay off your partner's debt.

Avoid applying for any joint bank accounts or joint mortgages if you feel that your partner's credit record is poor.