I Loaned a Credit Card to a Friend Who is Not Paying It Anymore. – Karla

“Dear Steve,

I loaned a credit card to a friend 8 years ago and she has been making minimum payments and using it until last year when she stopped making payments. I have been promised by her she will take care of it when her divorce is finalized and she gets a big cash settlement. Promises promises. The account is now 120 days past due and I received a letter that it will be sent to collections if I don’t act by a given date which has now passed by 11 days.

My credit report shows it is closed but not in collections. The friend won’t take or return my attempts to contact her.

What is the best way to handle a credit card company that I can’t afford to pay and is ready to be sent to collections?



Dear Karla,

The account is already in collections at 120 days delinquent. You are headed toward possibly being sued over the debt or having it charged off and sold to a debt buyer. This is all hurting your credit report and lowering your credit score.

I’m sure you meant well when you did this but never, ever, ever do this again. No matter how good the friend is.

Your choices at this point are to make payments arrangements with the people holding your debt or to consider other debt relief options.

She might have run up the account but since it is your card you are responsible for the balance.

How much is this debt and do you owe on other debts as well? Who is the creditor? Might it be a store card?

Please post your responses and follow-up messages to me on this in the comments section below.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
Damon Day - Pro Debt Coach

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