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I am considering Citibank balance transfer credit card for myself (with a 0% balance transfer offer)and wish to help a family member who has high interest debt and want to transfer their balance to mine so they can get out of debt faster. Is this possible and/or commonly done? Also is there any tax consequence for doing this?

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    Can you edit and add country tag – Dheer Mar 8 at 1:29
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    Tax aside, are you prepared to assume legal responsibility for their debt? – Lawrence Mar 8 at 2:56
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    You have effectively gifted your family member with the amount of the high-interest debt since you are now solely responsible for paying it off, and the family member is totally off the hook. So, if the debt is more than $15K, a gift tax return might be needed. – Dilip Sarwate Mar 8 at 4:15
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If you give them a loan (do document that) and don't charge interest you effectively give them a gift of whatever interest would be fair (check the federal rate and add a percent or two).
So the answer is no unless that amount of interest exceeds $15k in which case you have a whole host of other issues to worry about.

  • This assumes US, which is likely given Citibank but not explicit. – dave_thompson_085 Mar 8 at 21:13
  • Yes, the question can't be answered without assuming location (and US seems far more likely than anything else). – xyious Mar 8 at 21:16

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