What happen to someone who die, and leave a big credit card balance?
Who is responsible for that debt, and do you think the credit card companies should stop forcing us to accept their line of credit ?
Hi , good question . I would think the spouse is left with the debt to pay if there is a spouse .. Credit cards reel ya in any way they can ,plus they are so convinent ,however they shouldn't force their line of credit . Also ,a spouse shouldn't be left with a credit card debt if they aren't the one using it ... But that is the way it works
Hmm... really a good and thoughtful question...It makes me go mad....Thinking.....Trying to figure out an answer. Thanks for raising an interesting conversation!
Great question. Financial counselor and talk radio host Dave Ramsey often says "What you own stands good for what you owe.”
This means that the estate (all that the person owned - their assets, their property, etc) will be used to pay off the outstanding debt before it is divided up amongst other heirs.
For instance, if a husband has a balance on his personal credit card (and his wife was not a co-signer on it), and the husband passes away, the surviving wife does not take on his debt. Rather, the assets that are considered his will be used to pay off the debt, such as up to 50% of any cash in the bank and 50% of the sale value of the house.
But it's important to understand that debt is not transferable. You can't inherit a debt from your deceased spouse or parent. And a deceased relative's credit standing will not affect your own credit standing. Debt collectors may try to convince you otherwise, but you're not liable for a debt you did not incur. The only way you can incur debt is if you signed for it, be that through your personal credit account or an account you co-signed for.
Certainly in instances where the husband and wife were co-signers on the same credit card, or where the husband and wife share ownership of a house together, things can get complicated. It's always a good idea to talk with a competent estate attorney who can sort through the issues with you.
Bottom line, don't pay for anything you're not convinced you're responsible for. Collectors will try to collect from anyone, so stand firm until you know what the absolute right answer is.
Good question, basically, when a person dies with a big credit card debt, his overall possessions and properties will be used to pay for the said debt. After that, if there is still much to be paid, it will then be divided among heirs like his/her spouse and children.
by Rebecca Graf 8 years ago
What questions would you like to see answered about credit card debt?
by mashira 8 years ago
I'm in school and I have credit card bills. I really need help.
by Clifford Beaver 6 years ago
What is the best way to pay off credit card debt?I don't personally have any major credit card debt, and the debt that I do have is under control. However, I know some people who have let their credit cards get out of hand and I'm sure there are people searching for ways to pay it off. So I ask...
by blueorpurple 7 years ago
Credit card or cash! what should I use more?
by Donna Cosmato 6 years ago
How can I raise my credit score quickly?
by sandra rinck 9 years ago
Let me start off with roolllff! Everytime I look at a bill I get sick, everytime I need to bust out a credit card just to make it to the next month I wanna puke. Trying to get along in a busting economy is making me sick. I do need advise, good advise in a couple of areas,...
Copyright © 2018 HubPages Inc. and respective owners. Other product and company names shown may be trademarks of their respective owners. HubPages® is a registered Service Mark of HubPages, Inc. HubPages and Hubbers (authors) may earn revenue on this page based on affiliate relationships and advertisements with partners including Amazon, Google, and others.
|HubPages Device ID||This is used to identify particular browsers or devices when the access the service, and is used for security reasons.|
|Login||This is necessary to sign in to the HubPages Service.|
|HubPages Traffic Pixel||This is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.|
|Remarketing Pixels||We may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.|
|Conversion Tracking Pixels||We may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.|