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Paying family members credit card off

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So just today I found out a close family member has a large credit card debt. 

they are paying 28-30% interest on this debt, which they can’t afford 

do I pay the debt off and charge them 15% on it?  I make more and they save some 

or am I being greedy and just charge them 5-6% which I’d get on a savings account. As it’s family 

just to help them out. 

what’s everyone thoughts on this ? 

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Their debt.

If they are that silly to rack up a debt then they’ll do it again and expect you to bail them out.

Tough love is needed.

“Foook You, you’re an irrelevant customer, go somewhere else peasant, nobody’s listening, I’m alright Jack”

-Royal Mint 2024

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Depending on the circumstances of the family member and the size of the debts, it may be more beneficial for them to default. One thing we should never allow ourselves or anyone else to do is get caught in a debt-trap. We're already borderline economic wage slaves but to be debt-trapped like China or the USA do to developing nations is a cancer. Sometimes surgery and the pain of recovery is the only option

It's all dependent on their circumstances though and their need for credit. Defaulting is not a trivial matter and takes years to recover from. If there are future credit requirements for mortgages, car leases, etc, then defaulting carries a very high penalty. Defaulting may also impact current and future job prospects. I'd recommend they talk to a debt consolidation company and they can get that interest frozen and all payments rolled into a single monthly payment that's more affordable. That carries less of a penalty than outright default but is still far from ideal

Mind is primary and mass-energy is derivative

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If i am in a long term relationship with someone and you can afford to write it off then yes. If it's your parents then yes as they raised you. Other than that no IMO.

Don't think you will get it back. I am worse than most for a sob story and a big heart and have done it more than once and had to write 20+k off for a family member who didn't appreciate it.

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Thank you for everyone’s opinions, 

he’s a good guy and the father of my niece and nephew. He works 7 days a week trying to solve the problem. But still gets nowhere. 

the only reason for the massive debt is leverage in the crypto craze. Which at the top he was worth a massive amount of money. And it went pop unfortunately. 

I think he’s learnt his lesson. They still own there house with equity in it so can’t really go bankrupt 

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This is a difficult situation tbh and one many of us have found ourselves in. It is difficult to see a family member in financial difficulties but unless it was totally unavoidable it is a situation they put themselves into.

It is OK to help and it may feel good at the the time of helping but If they do not keep up repayments as James says it can destroy a family as it will put you in a very difficult situation if it goes south.

Ultimately it is a decision only you can make based on relationship, trust ect as for charging interest I can see how this would appear to be the way to go but if you are helping as they are family do you really want to charge them for helping this could only add issues later on, 

I wish you all the best whichever way you decide to go


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You say he owns his home, or maybe still has a mortgage, why does he not increase the mortgage as that would be a lot cheaper than credit card interest.   

If he was my brother or sister, I would give them the money interest free as I have have done many times. They pay back when they can.  

Always remember, you might need help one day and help is more than just money.

Never Chase and Never Regret 

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i have experience of paying off people's debts and lending them money. More often than not i don't see the money again.
This pisses me off when i have done them a good turn.

If i were to be faced with the same situation again i would want something tangible in return, something of equivalent value. Once the debt is paid off they can have whatever back, if they don't pay back then i'll sell whatever or keep it. If they don't have anything of worth, which is likely, then unless you can deal with not getting your money back then turn your back. Claim poverty. 

As already mentioned if they ran up the debt in the first place they will do it again - and you won't get your money back.

Always cast your vote - Spoil your ballot slip. Put 'Spoilt Ballot - I do not consent.' These votes are counted. If you do not do this you are consenting to the tyranny. None of them are fit for purpose. 
A tyranny relies on propaganda and force. Once the propaganda fails all that's left is force.

COVID-19 is a cover story for the collapsing economy. Green Energy isn't Green and it isn't Renewable.

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16 hours ago, scotwasp said:

People who rack up this kind of debt invariably do it again.

if he can give you security then consider it, or if you are prepared to not get paid back then fair enough, but a loan Will almost certainly result in a family rift when he defaults.

does he have anything of value he can sell you with the promise that you will sell him it back when he gets himself sorted.  This would be a better course of action in my opinion.


I did when I was drinking  I'd be wary if there are drink or drugs involved

I'm alright, Jack, Keep your hands off of my stack

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