did BT to Disc in May...want to BT again...need advice

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rwockenf
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did BT to Disc in May...want to BT again...need advice

Postby rwockenf » Wed Jul 15, 2015 3:48 pm

I did a BT from AMEX (my girlfriend and I share) to Disc it card (just in my name) in May to take advantage of 0% interest...roughly $11k. About $7k is her debt that she accumulated on the AMEX. We decided to get the joint card to help rebuild our credit. A few large charges due to car repairs and not monitoring it closely enough led to a high balance. Anyway, we are not at the point where we are pooling all our money and any bill is "our" bill. SO...

I transferred the balance to get away from the higher interest charge, and to increase my available credit...with the understanding from her that we would remain as aggressive towards paying the Discover as we were with the AMEX (since the beginning of the year we had been charging much less and making stronger payments).

Since we have transferred the debt she has become more lax about paying, citing the 0% interest. My argument back to her is that the whole reason for the transfer was to avoid the interest and "catch up" on the balance, paying off as much as we can possibly pay off.

Because she is not as invested in taking care of this, and because the Discover, and thus the debt, is all in my name (yes hindsight is 20/20...I probably shouldn't have done it), I was considering the idea of applying for another card with her as the primary and transferring her portion to that card.

My question: Would it be too soon to apply for another card (we both have 2 Hard Inquiries on our CR)? Would there be a negative consequence from Discover for transferring a portion of the balance I just transferred? I've never done that before. Is what I am suggesting a viable option? Are their any other options I haven't considered? There is no force her scenario...so....any help would be appreciated.


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CarefulBuilder14
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Re: did BT to Disc in May...want to BT again...need advice

Postby CarefulBuilder14 » Wed Jul 15, 2015 4:43 pm

Does she consider the $7k (that she accumulated, but is now in your name) to be "her" debt, "your" debt, or "our shared" debt?

I don't know enough about BTs between different people to give technical advice, but from what you've said, it's possible that she might flatly refuse to assume legal responsibility for it.

I don't think Discover would be bothered if you BT'ed most of the balance to another card. They've made their BT fee, and your balance will fall, making your account lower-risk for them.
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Re: did BT to Disc in May...want to BT again...need advice

Postby Vermonster » Wed Jul 15, 2015 7:11 pm

Well the only problem is you can't apply for a card in her name. She would have to be ok with it, which sounds like 99% of the battle.

I won't get into your relationship, but I think the financial troubles should not be overlooked. People can grow out of this mentality, but it takes effort on their part. I HIGHLY suggest you learn from this and cancel the joint Amex. She will have to learn from her mistakes, but there is no reason you should be brought down too. Have the card put entirely in her name, then add yourself as an AU.
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Re: did BT to Disc in May...want to BT again...need advice

Postby Gamma » Wed Jul 15, 2015 9:23 pm

Sounds like you should move all of her debt back to her. I wouldn't mix finance with my bf/gf unless both of you were married and planned it out because what if it doesn't work out for you guys? You'd be on the hook for her 7k. Also, you can't balance transfer from your discover card to her discover card. Banks don't allow balance transfer if it's from the same issuer (Discover.) You might need to have her apply for a different issuer. Chase for example has the Slate card which offers 0% balance transfer fee and Apr for 18 months. I'd go for it if your credit reports are clean.

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Re: did BT to Disc in May...want to BT again...need advice

Postby rwockenf » Thu Jul 16, 2015 9:53 am

Thank you for the responses.

No I wouldn't apply for the card for her...it would be a discussion we would have. My thought process was her getting another card with me as an AU and her as primary. Then transferring her portion of the Discover balance over to this new card. I would not use the card and I would try and see if AMEX would remove her as an account holder. Is that something that is possible? It is a Costco TE card...I know about Costco and AMEX ending their relationship next year. I wonder if I would be able to get a new card with AMEX before/when the TE card ends...? Thoughts? I really don't want to close the AMEX if at all possible.

You're all right about learning the lesson with regard to the relationship. I believe she sees the debt as hers, but doesn't like discussing it. I harp on it sometimes because my name is on it too...so in trying to remove myself from it, and placing it solely on her, I think it would remove some tension because the responsibility would all be on her....and therefore, she wouldn't have to hear about it from me.

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Re: did BT to Disc in May...want to BT again...need advice

Postby CarefulBuilder14 » Thu Jul 16, 2015 11:05 am

Vermonster wrote:Well the only problem is you can't apply for a card in her name. She would have to be ok with it, which sounds like 99% of the battle.

I won't get into your relationship, but I think the financial troubles should not be overlooked. People can grow out of this mentality, but it takes effort on their part. I HIGHLY suggest you learn from this and cancel the joint Amex. She will have to learn from her mistakes, but there is no reason you should be brought down too. Have the card put entirely in her name, then add yourself as an AU.


Vermonster has described it pretty well. If she was eager to take responsibility for the debt, I don't think she'd be acting the way she is. Getting her to assume sole responsibility is probably going to be very difficult, if not impossible. I'm not sure what the best way to go about it is, since she isn't obligated to do anything to help you. Although she might not say so explicitly, she may feel that's it's now your problem. No amount of discussion may change that.

Having the joint Amex does put you at risk for her to overspend and stick you with more debt. Are you leaning towards staying with her, or breaking up? I suspect she will interpret a closed joint account as a breakup message. She probably won't see it as you trying to help her. There's also the consideration that your utilization is very high on Discover, and your overall utilization will be high since Amex and Discover are your only cards.

rwockenf wrote:Thank you for the responses.

No I wouldn't apply for the card for her...it would be a discussion we would have. My thought process was her getting another card with me as an AU and her as primary. Then transferring her portion of the Discover balance over to this new card. I would not use the card and I would try and see if AMEX would remove her as an account holder. Is that something that is possible? It is a Costco TE card...I know about Costco and AMEX ending their relationship next year. I wonder if I would be able to get a new card with AMEX before/when the TE card ends...? Thoughts? I really don't want to close the AMEX if at all possible.

You're all right about learning the lesson with regard to the relationship. I believe she sees the debt as hers, but doesn't like discussing it. I harp on it sometimes because my name is on it too...so in trying to remove myself from it, and placing it solely on her, I think it would remove some tension because the responsibility would all be on her....and therefore, she wouldn't have to hear about it from me.

It sounds a bit like you two are on different planets. It doesn't sound like she will be less tense if $7k of debt is solely on her shoulders. Sure, she may have created it, but I don't think she'll be happy about taking it back.
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rwockenf
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Re: did BT to Disc in May...want to BT again...need advice

Postby rwockenf » Thu Jul 16, 2015 11:17 am

Makes sense...and it is something I have thought about (her not being willing to take on the debt on her own). I did forget to mention that currently her AMEX card is residing in my safe and isn't even on her person. She has no automatic payments or bills being charged to it. However, she does occasionally ask me to put items on my card when we are out (she is the definition of a paycheck to paycheck person). She recently paid all those items off, so currently she has zero charges on the AMEX that she is responsible for.

Perhaps I leave her on the AMEX card but limit the charge amount if she asks for it back. She is quite prideful and doesn't like the idea of owing anyone anything, so while I agree it would be a tough sell, I think she might like the idea of being "out from under" it...or me financially. I think so long as the new card offered an extended 0% interest plan, like the Slate card Gamma suggested, she would be more responsive and not feel like there was any urgency with her paying it off.

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Re: did BT to Disc in May...want to BT again...need advice

Postby CarefulBuilder14 » Thu Jul 16, 2015 11:22 am

rwockenf wrote:Makes sense...and it is something I have thought about (her not being willing to take on the debt on her own). I did forget to mention that currently her AMEX card is residing in my safe and isn't even on her person. She has no automatic payments or bills being charged to it. However, she does occasionally ask me to put items on my card when we are out (she is the definition of a paycheck to paycheck person). She recently paid all those items off, so currently she has zero charges on the AMEX that she is responsible for.

Perhaps I leave her on the AMEX card but limit the charge amount if she asks for it back. She is quite prideful and doesn't like the idea of owing anyone anything, so while I agree it would be a tough sell, I think she might like the idea of being "out from under" it...or me financially. I think so long as the new card offered an extended 0% interest plan, like the Slate card Gamma suggested, she would be more responsive and not feel like there was any urgency with her paying it off.

The fact that she doesn't have the physical card doesn't matter if she's determined to use it. She may have the card and security numbers memorized and can use the card online, or she can just tell Amex that her old one wore out and have them mail her a new one.
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takeshi
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Re: did BT to Disc in May...want to BT again...need advice

Postby takeshi » Tue Jul 21, 2015 3:19 pm

rwockenf wrote:My question: Would it be too soon to apply for another card (we both have 2 Hard Inquiries on our CR)?

Difficult to say based on what you've provided in your OP. Inquiries are one of the smallest factors. We would need a lot more information about her credit to even begin to guess and even then it would still just be a guess.

rwockenf wrote:Would there be a negative consequence from Discover for transferring a portion of the balance I just transferred?

Nope. An outbound BT is like any other payment to a creditor. Creditors aren't going to take adverse action on your for paying them.

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Re: did BT to Disc in May...want to BT again...need advice

Postby whit » Tue Jul 21, 2015 3:42 pm

Was it this May you guys did the transfer?

For the 11k, about 7k is hers solely but that's not taking into consideration any car repairs which sounds like you both jointly rely on right?

I'm thinking that because it is in your name right now only, as others have mentioned, it is best to see if you can transfer the portion she owes to a card she herself opens, the trouble with that may be that depending on how the bank does the transfer (because when you're applying online or in branch they usually only ask for the card number and amount, heck, I walked a client through one that was for her business line of credit and so..it doesn't ask for the name..but I'm not sure if they would still need that to match..perhaps someone who works in cc can shed light)

But if it's possible, like takeshi said, they don't see it as BT but just as a payment so there's no negative affect.

If she were to do that, i would recommend breaking down the amount owed with the months allowed, so she knows exactly what is needed in the absolute bare minimum. And if it helps, scare some sense by showing how much interest she will be paying if she lags or doesn't pay it off in time by the end of the 0%promotion and so if it's something like $500 dollars..how much does she make an hour? You said she's paycheck to paycheck..let's say it's 20$ a hour, that's an additional 25 hours of work

Best of luck op



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