I (65F) Added my daughter (36F) as an authorized user on my credit card and maxed out. She stopped paying 3 years ago and it is now in collections.

Navigating Credit Card Challenges: When Family Finances Hit a Snag

As we navigate through life’s financial journeys, it’s not uncommon to seek assistance from loved ones. However, the intertwining of personal relationships and financial obligations can sometimes lead to complex situations. This is a story from one such experience, offering insights and seeking solutions for those facing similar challenges.

A mother, at 65 years of age, made a heartfelt decision to support her daughter in a time of need. By adding her daughter, now 36, as an authorized user on her credit card, she aimed to provide financial flexibility and assistance. However, this well-intentioned gesture took an unexpected turn when the credit card eventually reached its limit and went unpaid. For the past three years, the obligation has fallen into collections, leaving the mother concerned about her responsibility for the amassed debt.

Her daughter has since relocated to a different state, further complicating the matter. The pressing question remains: Is the mother legally accountable for the debt accumulated on the credit card?

While financial advice should be tailored to individual circumstances, generally speaking, authorized users on a credit card are not held liable for the debt. The primary account holder bears the responsibility. In this case, despite the daughter’s use of the card, it is the mother who may be faced with addressing the collection efforts.

Given her limited financial capacity to settle a large debt, a practical step forward would involve exploring her options with the help of a financial advisor or credit counseling service. These professionals can offer guidance on possible debt settlement or negotiation strategies that could alleviate the financial burden without the need to discharge the entire sum at once.

Ultimately, while financial entanglements with family can be challenging and emotionally taxing, there are pathways available to untangle these knots without compromising one’s financial future. Seeking professional help and understanding one’s rights can be pivotal in navigating these troubled waters, allowing both the spirit of familial support and financial responsibility to coexist harmoniously.