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what happens when u die to a loan?

Can someone tell me is anyone else liabel(family etc) for a loan when you die or does a loan die with you? Loan company's keep trying to flog me loan protection saying my family will end up in debt if i die.

Comments

  • nomoneytoday
    nomoneytoday Posts: 4,871 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    If the debt is unsecured then the balance may come from the estate.
    If the estate doesn't have enough assets then the loan dies.
    The family are not liable for the shortfall, although it may mean there is no money left to pay the children.
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