Anyone ever have relative/family/,maybe a spouse, you suspect abusing credit/c.cards?

[H.G.P.]

I guess from my perspective this would not bother me as much , except I view this as (unlike a "real disease"), as 1. avoidable, and 2. seems to be playing on anothers/others sympathies (i.e. enablers).

Red flags in this situation making me suspicious are in the past twelve months: 1. the individual is using credit cards (multiple cards I believe), to pay off due mortage payments (and maybe other essential bills), 2. appealing to another family member (what I see as an "enabler") for items , 3. and possibly selling off personal items.

I'm not sure what the ramifications of this are/can be. Perhaps I'm just overly suspicious. Maybe someone with experience/opinion, would like to chime in on this one. Thanks

[Dantilla]

Using credit cards to make a mortgage payment is always a huge red flag. You are correct to be concerned.

[azasadny]

I was always told that if you use a credit card to pay for something that will be gone before the payment is made, you're in trouble. I guess this includes food, drink, gasoline, rent, etc...

[Moneyguy1]

Is this an individual who, in any way, shape or form can impact your credit rating?

[RANDY P]

I'd think so.... See it every day and have known people 1sthand who do EXACTLY what you describe. A credit card was never meant for long term financing. The only reason I could see a mortgage payment paid in that fashion if the bill is paid off every month and the user is getting airline miles.

When you wind up with a BK forced on you since you've been dragged into court and they're trying to garnish your wages or sell your home for unpaid credit card debt then it will sink in. If you have a home and live in a state where they can force sale to collect then maybe it'll be obvious how much trouble they're in.

The lack of disclosure and general policies of the credit card companies should be deemed illegal. Good for them the record numbers of BK's they suffer from.

[chuckw951]

Originally posted by RANDY P
. If you have a home and live in a state where they can force sale to collect then maybe it'll be obvious how much trouble they're in.

I don't know if this is true in any state. The credit card companies are trying to get bankruptcy reform through Congress to do exactly this....and why getting home equity loans to pay off credit cards are a bad idea...because if you default on those they can take your house...

[RANDY P]

Originally posted by chuckw951
I don't know if this is true in any state. The credit card companies are trying to get bankruptcy reform through Congress to do exactly this....and why getting home equity loans to pay off credit cards are a bad idea...because if you default on those they can take your house...

Oops,

I meant if you're already in BK court.....

rjp

[john70t]

Unless you get five credit cards and have a months morgage on 4 of them (no more than 20% of allowed credit each).
Each month the total bill is paid off by the next and then re-charged.
The volume should be enough to get continuous airline milage so you'll have to do remote banking from over there
(edit-this was a joke but I knew someone who was sucessful at somthing similar)

[H.G.P.]

Originally posted by Moneyguy1
Is this an individual who, in any way, shape or form can impact your credit rating?

No.

I did find an interesting site called debtorsanonymous.org

[Moneyguy1]

I am relieved to find it is not a direct liability to you. One of the most difficult things onbe does as a financial planner/counselor is to try to change people's behavior re: credit.

You correctly referred to a person who is involved with the overspender as an "enabler", since in many cases the same terminology applies as it does to any addiction. I don't know any quick cure and like Chuck points out, a home equity loan to pay off credit card balances can be a trap UNLESS the person does like the ad shows, destroys the credit cards and doesn't use them as a regular method of purchase. Such a loan is the last line of defense; next to go is the house since there are no more places to obtain necessry capital.

One rule:

If it is not an emergency, and you cannot pay cash for it, you do not need it.

No parsing of terms, simple and straightforward. A five year old car, for example, is NOT an emergency.