diagnosed term.ill after loan agreement-frantic please help

Lavender24

I'm a 60 year old grandma seeking help & advice from forum members please advise me if you can.
Whilst attempting to restart my life 3 years ago I ran up credit card debts of £7000.I have an excellent credit history & have never been in debt to this extent before.I decided to take out a consol. loan of £8000 payable over 3 years,I am in a secure job(although not very well paid) & knew I could afford the payments at a much better APR to pay of my debts,I also have enough self discipline to not use the cards again.
All seemed OK,until 3 weeks after receiving the loan as a result of hospital tests for what was thought to be a minor problem I have been diagnosed with probably terminal cancer,this appears to have come about from a misdiagnosis by my G.P.
What do I do now???I have no assets to leave other than personal possessions.
Do I continue & pay off the c.c. debts with the loan, or try to payback the loan now & hope under the circumstances the lender will let me off penalties - leaving the c.c. debts in place knowing I cannot repay them?

Are my children responsible for either of these debts(pers.loan & credit card) when I die?Which is the better debt to leave unpaid??

If I survive longer than my 6months full sick pay are the creditors going to be pursuing me on my deathbed for payments I can no longer afford?

I was arranging payment protection insurance when this bombshell dropped in my lap,obviously this is now not poss.
Please-some input,I live alone & my children know none of this yet,I'm sure you can appreciate my state of mind at the mo.,if I can get some reassuring advice & a little guidance ref.the finances,I can concentrate on fighting this disease.
By the way I have no compunction about a large national bank having to write off a relatively small debt taken out in good faith,but I do about dying & leaving my children to pay .Perhaps this is a wrong attitude?

many thanks in advance for any input

Good health to you all

Keeping_Motivated

Firstly I am so sorry about your news I hope you find their is more medically they can do for you than you are assuming, this is an awful blow for you.

As for the debt your children will not be liable but your estate will, the debt will be taken oput first before any remaining money is given to your next of kin or the people in your will. If you have nothing in terms of property or policies etc then the debt will be written off your children will not be liable.

Again I am sorry about your news and sorry that you have to worry about money at a time like this.

KM x

Someone else will be along to advise about continuing with the loan or keeping the CCs who knows more than me.

standupguy

Just to re-iterate the last post really - your children are not liable for the debt and if there are no cash assets then the debt will be written off.

You could contact the loan provider and ask if they are prepared, under the circumstances, to take the capital back in full and final settlement? - If not they could end losing the lot if you decided to settle your credit card bills and fall into arrears with the loan.?

Apr's do not really matter in this case - if a debt is written off it doesn't matter what the apr was.

You could then continue to pay the minimum payment on the credit card?

To be honest, given your news, these loans do not matter that much that you should be worrying about them - lenders take commercial risks when they underwrite loans and mostly they make profit, sometimes they do not but overall they make big profits.

krisskross

Do you have life insurance, perhaps as part of your pension? If you do die and have insurance then any debt would be paid out of this.

I do hope however that the prognosis is not as dire as you fear.

arealbasketcase

Hi Lavender24, so sorry to hear your news but things may not be as bad as they sound. I have never personally had to face a diagnosis like this and my heart goes out to you but just remember that in todays world there is so much that can be done and, I am told, that staying positive helps.

I think standupguy is giving you good advice, ask the loan provider to take back the capital and if there are any early repayment penalties ask them to wave them too.

You might not want to worry any one else but do try to share your worries with someone, I may not have had to face your diagnosis but I have had to face my mother being gravely ill (although thankfully now looking like making a full recovery). Had she kept something like this from me I would have been very hurt. Let those who love you take the burden, leave your strength for your health, the banks can shoulder their own burden.

Lavender24

thank you all for the above advice.You do not know what a relief & comfort your advice has given me.I guess in my state of mind I had got things out of proportion, my generation & particularly my family regarded debt as shameful ,& I find it difficult to admit to even in my present circumstances.Thank you once again,& arialbasketcase I am so glad your mum is on the up,yes of course you're right I must share this with my family.

Keeping_Motivated

I'm glad your mind is at rest at least a little. If you have the time/inclination then post on the debt free wannabe board and ask if there is anything you can do to manage the credit card interest rates if you decide to give the loan back.

KM x