Good idea??

ChillyP

Hi everyone,

things are going well with our debt repayment. For the first time in years we feel on control. 

We need to look at moving more of the debt to 0% but we just can’t get accepted as our utilisation is still high/ we’ve had the card before etc 

I have recently shared out situation with my dad who has been a great support.He’s retired with no debt. He has access to 3 x 0% money transfer offers for periods ranging from 12-30 mnths. He’s offered to allow me to use this money to ‘pay off’ some of my interest accruing debt. I would be responsible for the monthly payments. 

I’m very grateful but not sure if it’s wise.I’d definitely want to put something in writing, showing that I’m responsible for these debts. 

Would this be an ok thing to do?

fatbelly

It's a bit risky from your Dad's perspective, but obviously attractive to you. No need for anything in writing. He takes the risk

You say these are money transfer offers. Bear in mind if the cash goes through your account this could affect means tested benefits. Same for him.

I didn't realise there were still 3 cards doing 0% money transfer. Virgin and Tesco. Who's the third?

ChillyP

fatbelly said:

It's a bit risky from your Dad's perspective, but obviously attractive to you. No need for anything in writing. He takes the risk

You say these are money transfer offers. Bear in mind if the cash goes through your account this could affect means tested benefits. Same for him.

I didn't realise there were still 3 cards for doing 0% money transfer. Virgin and Tesco. Who's the third?

Hi, 

thanks gor your reply. He mentioned Natwesr but I’ve just looked and I think this might be a balance transfer. 

I think that the bit about putting in writing sss to cover my sibling if anything were to happen to dad then my share of any inheritance would be reduced to cover the outstanding debts etc 

neither of us receive any benefits 

TheAble

I wouldn't advise this. Suppose you were unable to make your monthly payments to him for whatever reason (job loss for example or some other unexpected hardship). Not only would it potentially put your father's finances under strain but also your relationship.

It sounds like you're doing fine and making good progress. So you have to pay some interest but it's not the end of the world. Just keep going and you'll get there.

ChillyP

TheAble said:

I wouldn't advise this. Suppose you were unable to make your monthly payments to him for whatever reason (job loss for example or some other unexpected hardship). Not only would it potentially put your father's finances under strain but also your relationship.

It sounds like you're doing fine and making good progress. So you have to pay some interest but it's not the end of the world. Just keep going and you'll get there.

Hi, I’ve actually discussed that scenario with him.he does have the money that I could borrow but would to keep that in his savings/ISA and use the credit instead. In the unlikely event of me losing my job etc he would either make the payments himself, or use his savings to clear the debt. 

He’s actually offered to transfer it and make the payments but I can’t and won’t accept that, as much as I appreciate it 

TheAble

There may come an occasion though where he'd like/need to use the ISA money for something else, but having the debt would place a limitation on him.

You're clearly being very diligent about it from what you've said, and have his interests at heart, but I just don't think this is a road you want to go down. Keep things simple even if you are having to incur interest, and avoid mixing debts and family.

ChillyP

TheAble said:

There may come an occasion though where he'd like/need to use the ISA money for something else, but having the debt would place a limitation on him.

You're clearly being very diligent about it from what you've said, and have his interests at heart, but I just don't think this is a road you want to go down. Keep things simple even if you are having to incur interest, and avoid mixing debts and family.

I need to think about it. He’s adamant that I have to do it as it will, in his words, ‘not cost him a penny’. 

fatbelly

I don't think he can balance transfer to a card that isn't his.

ChillyP

fatbelly said:

I don't think he can balance transfer to a card that isn't his.

Apparently it works with NatWest- he reckons that his sister has just done it for her daughter. If not then nothing lost I guess. 

EssexHebridean

Ok - look at this a different way. What steps have you tried to see whether you might stand a chance of acceptance for a 0% card in your own right? Are you a member of the MSE Credit Club and have you used that to see what percentage chance it shows you? And have you actually made applications and been refused?

if you are getting all zeroes on that, then it may well be that right now you won’t get anything - in which case you need to rein everything back and do nothing for a few months, then in say 3 months time, check again - when any previous applications should have a reduced impact. 

I personally wouldn’t suggest that what your Dad is suggesting is a great plan. I absolutely acknowledge that the 0% would be attractive, and that he doesn’t mind, but for me, my self respect would take a battering I think having to essentially rely on a parental bail-out as a grown adult. Actually, I don’t “think” it, I know it. Many years back we had to ask the OH’s parents to help us with rent one month at a time when I was earning a relatively low amount and he was earning at all - we simply couldn’t make ends meet at all, in spite of having cut everything to the bone. We paid it back over the following 3 months - every penny, but I hated having to do it! 

ChillyP

EssexHebridean said:

Ok - look at this a different way. What steps have you tried to see whether you might stand a chance of acceptance for a 0% card in your own right? Are you a member of the MSE Credit Club and have you used that to see what percentage chance it shows you? And have you actually made applications and been refused?

if you are getting all zeroes on that, then it may well be that right now you won’t get anything - in which case you need to rein everything back and do nothing for a few months, then in say 3 months time, check again - when any previous applications should have a reduced impact. 

I personally wouldn’t suggest that what your Dad is suggesting is a great plan. I absolutely acknowledge that the 0% would be attractive, and that he doesn’t mind, but for me, my self respect would take a battering I think having to essentially rely on a parental bail-out as a grown adult. Actually, I don’t “think” it, I know it. Many years back we had to ask the OH’s parents to help us with rent one month at a time when I was earning a relatively low amount and he was earning at all - we simply couldn’t make ends meet at all, in spite of having cut everything to the bone. We paid it back over the following 3 months - every penny, but I hated having to do it! 

It doesn’t look as though we’re eligible right now so I will check again in a month. Personally I don’t see it as a self-respect issue, although I take your point. I have a great relationship with dad. He had money issues in his 40’s/50’s so I’ve never felt any hint of judgement