Taking the Heat: Can You Be Held Accountable to Someone Else’s Credit Card Debt?

Having a credit card debt of your own can be a real headache, but what about if you end up responsible for somebody else’s credit card debt? Did you even realise it was possible?

It isn’t the most common occurrence in the world however it can happen in a few circumstances. Most of the time it will be due to a situation that you are aware of, and not something that will just spring itself on you.

The main times you personally might be responsible for somebody else’s credit card debt are:

• When you have acted as a guarantor for someone
• When you are married
• When you have opened a credit card for somebody else but it your name

Let’s have a look at each one, and see exactly where your personal liability comes into play.

Liability for another persons debt

Acting as a guarantor – When you become a guarantor for somebody you are saying that in the event of them becoming unable to pay their bill that you will become responsible for the debt.

If that person became unemployed, or ill you are signing a legal contract that says you take on full liability of the debt. That is why you should always think very carefully before you become a guarantor. Do you really know and trust that person enough to risk becoming liable for their credit card bill?

When you are married - Depending on the law in your country there may be times when if you are married you are jointly responsible for you partners debt. In most cases this situation occurs when a couple take out a credit card in joint names.

If one partner then loses their job, or is unable to pay for any other reason, both parties face liability and not just one. This could be why so many marriages have problems when faced with financial hardship.

Opening a credit card in your name – There have been cases in the past where people have helped friends who were unable to obtain credit by opening a credit card for them but in taking full liability themselves.

This can very easily backfire on you for a number of reasons. Whoever the person is that you opened the card account for has absolutely no legal obligation to pay the bill ever.

If the credit card is opened in your name then no matter who uses it, you and only you are responsible. The practice of opening accounts on behalf of another person is a very dangerous game, and in fact will not aid the person using the credit card in their attempts to obtain credit on their own.

It can also put a real strain on the relationship if that person ever falls on hard times, or is unable to pay the balance to you.

Conclusion

Realistically it is better idea for individuals to be solely responsible for their own credit cards, and credit card debt. Making the odd transaction on behalf of a friend or relative should be safe enough, however this should really be as far as it ever goes.

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