No. of Recommendations: 11
We are evaluating helping our son pay off credit card debt with a personal loan. We have the following questions:
1. Would it be better to cosign a bank loan with him or loan him the money with say 12% interest and a tight repayment schedule. We have a wonderful relationship with our son and do not want to jeopardize it.
2. We discussed calling the credit card companys and requesting an adjusted payoff, but our son said that this would affect his credit report even more. Is this true?

Any advice would be greatly appreciated. Our relationship with our son is too important to make a hasty decision.

#2 is likely true, however...

I would recommend #3 -- teach him how to pay off the credit cards on his own.

By providing him with a loan, you are preventing him from learning from his own mistakes. I think he'll be much better off in the long term with an aggressive repayment plan you help him devise and encourage him to stick with it. The problem with personal loans is that they are very personal and can place a tremendous strain on even the best of relationships.

There may be additional details that are missing which makes #1 a better choice, but I think this option is the best for everyone.
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