My parents have around $75K credit card debt. Combined, their AGI is ~$130,000 in Michigan. We've had the debt for years from the downturn and whatnot. They also owe a relative a couple thousand (but this relative is a Saint more or less and I've confirmed with her privately she never expects it back, though I'll never tell my parents that and I intend for them to pay it back).
The loan is 10 year fixed rate at 5.99% interest. Their credit scores are 682 and 672 respectively.
In my mind, it's easier to make one payment of $1100-1300 a month. A ton of these credit cards are frozen and my dad refuses to acknowledge or even pay them back.
I know the underlying issue here is how bad my parents are with money, but going forward, if they wipe the slate clean and I regularly check-in, is this a valid move? I think of it kind of like student loan consolidating.
What are the pitfalls to look out for? What are the drawbacks? I can always make a payment if my parents are behind so they don't lose the home. The home is worth approximately $500K. The house is paid off and they owe nothing on it.
My financial situation is pretty good but I don't intend on mixing up my and my parents' finances. I already dumbly cosigned a car for them (that I've never had to make a payment on because they take care of it, but it's one more straw on the camel's back in my eyes).
Submitted April 26, 2019 at 01:49PM by literatim http://bit.ly/2IWJor7
