Should I Borrow From Family Member to Settle My Debt? – Charese

“Dear Steve,

I live in California and a judgement has been entered against me for a credit card that was in collections in 2003. I set up stipulation payments, but I’m unemployed with no compensation. I have not made a payment for 5 months. I contacted the woman that handles my account by mail and phone regarding my situation; she has not returned my calls. I would like to settle, but would have to borrow from my family.

Should I try to borrow money to settle this debt?

Charese”

Dear Charese,

My initial reaction is that you should not borrow from family members. Why extend your issue into their pocket?

I think you need to accept responsibility for the mess created and either just wait till you are employed again and then make payment arrangements or go bankrupt and kill the judgment. Either way, the best solution here is going to be clear action by you.

Please update me on your progress by

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.

P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.

Damon Day - Pro Debt Coach

3 thoughts on “Should I Borrow From Family Member to Settle My Debt? – Charese”

    • I don’t see all the comments. When it comes to the SOL, being that it is so specific by state, I always suggest people consult with a lawyer licensed in your state for specific information they can depend on.

      Steve

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  1. As someone who has both borrowed money and one who has given money to family members and friends I have come to the conclusion it should never be a paid back loan unless you have paperwork signed between the two of you – Others never consider it a loan – they have to consider it a gift because something always comes up and the ‘loan’ is never paid back unless you have paperwork.
    .-= Dawn/FFL´s last blog ..For FFL readers via Email =-.

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