I let my mom open a credit card in my name, and now there’s a $40K balance she can't pay. Who’s responsible for payments?

Even though Bryce never spent a cent on the card, his name is on the account. That’s where the problem lies. How does this affect his credit? Is he on the hook to pay the debt? And what happens if his mom stops paying altogether?

Permission doesn’t erase legal responsibility

Credit card debt is a serious problem for millions of Canadians. TransUnion reports the average credit card balance hit $4,681 in late 2024 — a 6% jump from the year prior and the fastest-growing type of consumer debt (1).

In situations like Bryce’s, families often mix finances with good intentions. But when it comes to credit cards, who legally owes the money depends on how the account was set up — not who actually uses it.

If the credit card is in Bryce’s name and he’s the primary account holder, the debt belongs to him. From the lender’s perspective, Bryce borrowed the money. His mother’s spending doesn’t change that fact.

This is where many people get confused. Being an authorized user is totally different from being a joint account holder or primary borrower. According to the Government of Canada, authorized users can make purchases, but they aren’t legally responsible for repayment — joint account holders and primary borrowers are (2).

In this case, since the card was issued only in Bryce’s name, that $40,000 balance shows up on his credit report. That means it can tank his credit score and ruin his chances of qualifying for future loans.

Large balances damage your credit — and your future

A balance as large as $40,000 can create problems beyond monthly bills. Credit utilization — how much of your available credit you’re using — plays a major role in credit scoring. If that card carries a high balance relative to its limit, Bryce’s score is probably already suffering.

Missed or late payments would make things worse. Even one late payment could stay on his credit report for years, making it harder to buy a home, refinance student loans or get decent interest rates. If the account ever goes into default, collections or legal action could follow — targeting him, not his mother.

There’s also the emotional cost. Family debt arrangements can often destroy relationships, especially when expectations weren’t clarified from the start. What began as a helping hand can quickly turn into resentment, guilt and financial panic.

What to do right now

First and foremost, Bryce needs to find out exactly how the account is structured by calling the card issuer. Is he the primary borrower? Is his mother an authorized user or joint holder? That distinction controls every option moving forward.