I think there is a verification question on each balance transfer to the effect of "This is an account with your name on it". In each of the two scenarios that answer would be No, so from that perspective it sounds risky.
Also, there is a cardinal rule of credit: If you help out a family member or friend with a credit loan, then you basically take on that debt yourself. You must be fully prepared to pay off the funds yourself, as you have no legal recourse to collect from your friend without a high probability of turning the friendship to ashes.
It is indeed challenging to pay off a debt in a high interest situation. The reality is that your friend took on this obligation as an adult. Your friend is probably best left to pay the amount themselves. Personal financial decisions and consequences are not fatal, and if the financial obligations become something someone cannot pay back, that is what bankruptcy laws are for.
@Anonymous wrote:One of my very close friends is having financial trouble, and paying high interest in his credit cards. Right now, he does not have any zero apr cards and his credit score is also very low (around 600). So, he is unable to get any zero apr card right now. On the other hand, I have one zero apr card till next September.
My plan is to transfer his balance to my card so that his credit score can improve and he can apply for a new zero apr card. He did not miss any payments so far. Once he gets his new card, I want to transfer it back to his new card. Do you think it's possible or feasible? Does anyone have a similar experience? What alternatives does he have?
I am mainly concerned about technical issues. I trust my friend and am confident enough to do this for him.
You've already gotten some excellent advice in this thread. I have a little to toss in.
You can get around the fact that the account being paid off is not yours by having the funds put in your checking account first. Then use that to pay off your friend's bill.
BUT DON'T DO IT!!!!!
There is absolutely no guarantee that he will be approved for a card any time soon, especially a really GOOD card. Meanwhile, you've been [potentially] charged a BT fee and will have to make payments on the balance you put on your card.
Personally, I'm very generous with money when it comes to people I trust. However, I have a cardinal rule--for myself: give it freely, happily, and with genuine concern for the person, but do not expect to ever see a penny of it repaid. I always ask myself, "can I TRULY afford to lose this money?" By doing this, I'm happy and grateful when they do pay me back, and I'm not disappointed when they don't. (Out of all the loans/other financial help I've given over the years, all but one paid me back in full. The one who didn't paid back $33,000 of $50,000 then just stopped. Oh well. No expectations going in, no disappointment going out.)
@Anonymous wrote:Thank you all for warning me. I am reconsidering my plan. I will only transfer the amount that I can pay before my zero apr expires. I am no longer considering transfer back an option.
Thanks for the update. Post again if you need ideas, suggestions, or just general brainstorming! 