A family member of mine owes significant debt on several high-interest credit cards. They are struggling to make much more than the minimum payments, which is keeping them in a cycle of debt.
I have an offer for a credit card with 0% interest for 21 months that could cover their entire debt, and this got me thinking. If I want to transfer their debt onto the card in my name, they would be able to pay it off much more quickly because their payments would stop going towards the interest charges, breaking out of a cycle of debt.
I didn't see anything in the offer letter they sent me forbidding it, but I'm thinking they may disallow it because they made the offer based on my (very good) credit score, which will go down if I accepted this debt and my credit utilization went up.
- Could I use a balance transfer offer to me to accept someone else's credit card debt?
- As a secondary consideration, would it be possible to negotiate smaller balances with the high interest cards based on an immediate cash payment, and then use the balance transfer to provide that cash payment?
I am not looking for advice on the wisdom of doing this, I am aware of the pitfalls. I am looking for answers about the practical limitations of using a balance transfer to accept and minimize someone else's credit card debt.