I made a huge mistake...please advise what could happen.
Almost two years ago my sister agreed to co-sign a loan for me. I opened an account, and paid on it all of the time. About a year later she agreed to cosign another account to have a surgical procedure done. I decided I could not afford it. Because the intrest rate was so much better I decided to transfer the account to the new card. Little by little I started using the card. I had a 5 % intrest rate and everything was fine. I made a payment online that never went through, so my interest rate jumped to 28.99%!!! I did not know what to do. The past 5 months has been a huge battle with this card and now they have involved my sister. She has perfect credit so this hurt her very much. She looked into all of her options, until finally her lawyer told her she needs to close the account do to fraud. He assured her if she did not press charges against me nothing would happen to me I would only be responsible to repay the money. But I have heard that this is not the case at all. There is about $5,000 on the account plus interest that has now made the card over $7,000. Someone advised me that if she does not press charges the credit card company will. And this could mean jail time? I appreciate your advise and information.