If a person close to you passes away, like a spouse, do you know how to deal with that person’s credit card debt? It’s a difficult task to deal with aside from the obvious grieving. There is a process for such a task and the sooner one deals with it the better for everyone.
First, ascertain who is responsible for the credit card debt. If the deceased person is the only person named on the credit card, then the debt should end with their passing. If you are also responsible for the debt, you will be required by the creditor to pay the balance. The creditor(s) must be notified as soon as possible of the debtor’s passing. This will avoid any distressing collection calls occurring for those left behind.
You can notify creditors by following these steps:
We have included more tips about dealing with debt after the death of a spouse in the blog post: Saddled with Debt after Death of Spouse.
For those survivors who are responsible for the unresolved credit card debt, it is understandable that the loss of the deceased person’s income or pension can further deteriorate financial stability. Coupled with funeral and burial costs, a person would easily and quickly become financially crippled.
That being said, it is fairly important to avoid making any rash decisions for dealing with debt. Securing debt to a home investment, with a Home Equity Line of Credit, (HELOC) could very well put one’s home investment into jeopardy, should any payments lapse. If you have lost a spouse, and have unsettled debt that is interfering with the quality of life, you need to resolve your finances ~ now.
DebtHelpers.ca has helped thousands of Canadians for over a decade. Many of our members are bereaving survivors who have been left in financial stress. We are accustomed to managing their debts and tailoring reasonable and affordable repayment plans that have allowed them to get back to a better place financially, and eventually emotionally.
We can help.