“What happens to my debt when I die?” This is a common question that we get as credit repair experts and it ultimately comes down to estate planning. If you are carrying debt when you die, the debt doesn’t pass away with you. It’s estimated that 73% of all Americans will die with some form of debt. Whether it’s medical bills, auto loans, credit cards, or a student loan, there are debts that persist even after you pass away. If you don’t have access to the funds to pay for your debt, your spouse, child or another family member may be responsible for paying off the rest of your debt.
What often happens to debt when a person passes away is their valuables, assets, and real estate are often sold off in an effort to handle some of the unpaid debt. This can prevent family members from inheriting the debt but it will minimize their chances of receiving any sort of inheritance. Here are some strategies that you can use for reducing your debt and preventing the chance that your loved ones could face unpaid debts.
Seek Life Insurance
One of the easiest ways that you can protect your family and handle unforeseen costs like the debt you carry can be a life insurance policy. Life insurance policies are designed to ensure that you leave no burden on your loved ones.
Remove Co Signer’s From Loans As Soon As Possible
If you have cosigners on loans or a joint account, this will make sure that other people will not be responsible for paying off your debt. If you have a parent or another loved one as a cosigner on a financial product, repairing your credit and then finding a way that you can get those people off the account is a great way to not leave them liable for the debts you are facing.
Seek Credit Repair
Going to a financial counselor or credit repair specialist can help you restructure your debts and find the best way that you can reduce the total amount of debt that you are facing. Working with a credit repair specialist will make sure that you won’t have a series of debts that your loved ones may face in the future.
Contact us today if you could use support for your current financial situation.
This post was written by Kristian D’An, owner of Lux Credit LLC and CCA board certified credit repair specialist. Lux Credit offers credit repair services for those looking to improve their credit!