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  • FIRST POST
    • Moneyx3
    • By Moneyx3 6th Dec 17, 12:30 PM
    • 12Posts
    • 3Thanks
    Moneyx3
    Would you snowball?
    • #1
    • 6th Dec 17, 12:30 PM
    Would you snowball? 6th Dec 17 at 12:30 PM
    Hi
    I would be very interested to hear what others would do in this position - hearts and heads are in disagreement. We have been working on getting debts down as fast as possible but oh now in poor health and I would like to have some fun and travel adventures while we can. Would you keep on paying extra to be debt free in 2 years' time or just pay minimum payments and be in debt for longer. We get private pensions (over 60 but not old enough for state pensions yet) - no mortgage but no insurance either. Total debt 33k.
    Thank you.
    Money isn't everything!
Page 1
    • zx81
    • By zx81 6th Dec 17, 12:47 PM
    • 14,389 Posts
    • 15,184 Thanks
    zx81
    • #2
    • 6th Dec 17, 12:47 PM
    • #2
    • 6th Dec 17, 12:47 PM
    I'd pay down the debts.

    Life is a lot more fun when you're debt free.
    • PeacefulWaters
    • By PeacefulWaters 6th Dec 17, 1:05 PM
    • 7,305 Posts
    • 9,049 Thanks
    PeacefulWaters
    • #3
    • 6th Dec 17, 1:05 PM
    • #3
    • 6th Dec 17, 1:05 PM
    Is the OH terminal?

    Does he have assets?

    If not, then spend away on credit facilities in the sole name of your OH and pay down debt in your name only.
    • Moneyx3
    • By Moneyx3 6th Dec 17, 1:21 PM
    • 12 Posts
    • 3 Thanks
    Moneyx3
    • #4
    • 6th Dec 17, 1:21 PM
    • #4
    • 6th Dec 17, 1:21 PM
    Thankfully prognosis not yet terminal. Only asset is our shared house. I worry that if left alone I would not be able to manage payments and would be forced to sell house. Would I not still be liable for oh debt after death? We made enquiries and it is too late to get affordable life cover.
    Money isn't everything!
    • Tarambor
    • By Tarambor 6th Dec 17, 1:40 PM
    • 1,751 Posts
    • 1,203 Thanks
    Tarambor
    • #5
    • 6th Dec 17, 1:40 PM
    • #5
    • 6th Dec 17, 1:40 PM
    The Estate of the deceased would be liable. If there are no monies or assets to cover the debts they go unpaid and die with the debtor.
    • Moneyx3
    • By Moneyx3 6th Dec 17, 1:49 PM
    • 12 Posts
    • 3 Thanks
    Moneyx3
    • #6
    • 6th Dec 17, 1:49 PM
    • #6
    • 6th Dec 17, 1:49 PM
    Thank you. This is what my head is saying.
    Money isn't everything!
    • Moneyx3
    • By Moneyx3 6th Dec 17, 1:52 PM
    • 12 Posts
    • 3 Thanks
    Moneyx3
    • #7
    • 6th Dec 17, 1:52 PM
    • #7
    • 6th Dec 17, 1:52 PM
    Thank you for the info, I will look into that.
    Money isn't everything!
    • Shakin Steve
    • By Shakin Steve 6th Dec 17, 2:58 PM
    • 1,137 Posts
    • 844 Thanks
    Shakin Steve
    • #8
    • 6th Dec 17, 2:58 PM
    • #8
    • 6th Dec 17, 2:58 PM
    If you own your own home, then both of you have assets that include half of a mortgage free house. Debtors may, at least, put a charge on the property.
    I came into this world with nothing and I've got most of it left.
    • Moneyx3
    • By Moneyx3 6th Dec 17, 3:14 PM
    • 12 Posts
    • 3 Thanks
    Moneyx3
    • #9
    • 6th Dec 17, 3:14 PM
    • #9
    • 6th Dec 17, 3:14 PM
    Thank you for that information - it's an important point to take into consideration.
    Money isn't everything!
    • enthusiasticsaver
    • By enthusiasticsaver 6th Dec 17, 3:39 PM
    • 4,848 Posts
    • 9,162 Thanks
    enthusiasticsaver
    Both my heart and head would be saying get rid of the debt. I could not bear the worry of coping with debt and my OH in poor health too. No holiday could compare with the peace of mind of being debt free. How did the debt arise in the first place and whose name is it in?
    1 week to go until early retirement. Debt free and mortgage free.

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • Moneyx3
    • By Moneyx3 6th Dec 17, 5:24 PM
    • 12 Posts
    • 3 Thanks
    Moneyx3
    Thank you. The debt arose as a result of taking out 2 equal personal loans in order to get rid of the remainder of high cost mortgage. Early retirement lump sum used to pay off the bulk after illness diagnosed. In hindsight not the right move maybe but trying to do the right thing now. Moving house at the wrong time (2007) didn't help.
    Money isn't everything!
  • National Debtline
    Hi Moneyx3


    Just to clarify the point on what happens to debt after someone passes away. The deceased person's estate is liable for the debt. The estate includes their share of a property. The rules can be complicated but certainly creditors have the option of making a claim against the property.


    Although you would not be liable for your OH's debts, in some cases you may end up having to negotiate with them to protect your property. It's worth bearing in mind when deciding how quickly you are going to try to repay your debts.


    Susie
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • Moneyx3
    • By Moneyx3 6th Dec 17, 5:37 PM
    • 12 Posts
    • 3 Thanks
    Moneyx3
    Thank you. As you can imagine it is not simply a mathematical calculation for me. Trying to make a crucial decision under emotional stress is very hard. Everyone has been very helpful and it is very much appreciated.
    Money isn't everything!
    • Fireflyaway
    • By Fireflyaway 6th Dec 17, 5:52 PM
    • 1,355 Posts
    • 1,375 Thanks
    Fireflyaway
    I'd work at getting rid of the debt. You can still have fun on a budget but being debt free will give you so much peace of mind. When you have no debts you can travel freely, you know your home is safe and you will have more disposal income. Prices will only rise after all and you will be grateful to have a better income. I hate being in debt but I can work my way out. Once you get really elderly you have less choices available so don't wait till then.
    • Moneyx3
    • By Moneyx3 6th Dec 17, 6:04 PM
    • 12 Posts
    • 3 Thanks
    Moneyx3
    Thank you. That makes sense. Been mulling over it this afternoon and am thinking of booking up very, very early for the place oh has always wanted to visit. That way, we get the price now but only need to pay small deposit. Something to look forward too but debt will be well down by the time balance due. I'll sleep on it though, not making any rash decisions.
    Money isn't everything!
    • amstel2
    • By amstel2 6th Dec 17, 6:39 PM
    • 243 Posts
    • 35 Thanks
    amstel2
    RE your house it depends if the debts are secured or unsecured. As far as in know creds can't touch your house if their un-secured.
    • Shakin Steve
    • By Shakin Steve 6th Dec 17, 7:21 PM
    • 1,137 Posts
    • 844 Thanks
    Shakin Steve
    This all rather depends on just how serious your health problems are. Taking a mid estimate guess at your ages being around 63-64, then you could be debt free at 65-66. That is not old these days and, without debts, you would still have plenty of time to enjoy life. However, if you problems are more serious, then you have to weigh enjoying the next couple of years against worrying about debt as your health deteriorates. Only you really know what your options are, and you are bound to get differing options on here.
    I came into this world with nothing and I've got most of it left.
    • Moneyx3
    • By Moneyx3 6th Dec 17, 8:17 PM
    • 12 Posts
    • 3 Thanks
    Moneyx3
    All debts are unsecured, which I suppose makes it slightly better. Thank you for your help.
    Money isn't everything!
    • Moneyx3
    • By Moneyx3 6th Dec 17, 8:26 PM
    • 12 Posts
    • 3 Thanks
    Moneyx3
    This is the quandary. Starting to build an emergency fund so won't have to get any further in debt and if the holiday option is decided on it will be paid cash.
    Money isn't everything!
  • National Debtline
    RE your house it depends if the debts are secured or unsecured. As far as in know creds can't touch your house if their un-secured.
    Originally posted by amstel2

    Unsecured creditors are entitled to make a claim against the estate, which includes someone's share in a property. It's just worth knowing this. You can also find more information on this here https://www.nationaldebtline.org/EW/factsheets/Pages/dealing-with-debt-when-someone-dies/bereavement-and-debt.aspx.


    Susie
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
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