If a loved one has a debt they’re unable to pay, you may be considering helping them out. But you might be wondering—is it really possible to transfer a personal loan to someone else?
Unfortunately, it is not possible to completely transfer a loan to another person, or to yourself. However, there are a few options available to you if you’d like to start making payments on their behalf. Keep reading to learn the steps you’ll need to take to address someone else’s debt.
How to Transfer Debt to Someone Else
1. Understand the Debt
Before you fully commit to taking on someone else’s debt, you should learn as much as possible about the debt. Is it a new debt or is it an old debt? How much is owed in total?
Does it have a high-interest rate? What are the terms and conditions? Are you co-signing or committing to paying the loan in full? Answering these questions will help you get a better idea of the debt as well as the type of commitment you will be taking on.
2. Speak to Creditors
Once you decide to take on the other person’s debt, you should call the creditor directly and express your wishes to be added to their account. In most cases, you can simply say that you want to be added to the account as a guarantor.
To complete this process, you will likely need to provide information about the account as well as the personal information of the current account holder. In some cases, you will only be eligible to be added after you’ve undergone a credit check.
Once your name has been added to their account, you can pay the debt back in full or set up monthly payments.
3. Deal with Collections
If the person’s account has gone to debt collections, you’ll no longer have the option of adding your name to their account. In this case, you will need to contact the debt collector directly to make payment arrangements.
4. Transfer Balances
If you want to move the debt from the person’s account completely, you could transfer the debt to your credit card. This of course is only an option if you have a card with a sufficient credit limit. You should also be careful with this option, since adding a high amount to your card could negatively affect your credit score and lead to unmanageable credit card debt.
If the debt is too high or you don’t want to be held responsible for the entire debt, consider transferring a portion of the amount onto your card, rather than the entire debt.
Speak to a Bankruptcy Attorney in Cicero
If you’re helping someone who’s dealing with a financial burden, you should know that there are options available to provide relief. The lawyers at Koch & Associates are well-versed in a variety of financial matters, including bankruptcy and foreclosure defense. We’re the most trusted bankruptcy attorneys in Cicero and the surrounding communities!
Reach out to our team today to learn more about your options!