Would you snowball?

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

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.

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

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.

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

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.

Moneyx3

All debts are unsecured, which I suppose makes it slightly better. Thank you for your help.

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.

National_Debtline

amstel2 wrote: »

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.

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

Moneyx3

Thank you Susie and everyone who has helped with information. After very careful consideration, the decision has been made to concentrate on getting the debt down as quickly as possible. Once it is down to the level that either one of us could cope single handedly, then we will look at maybe splashing out on that special trip but will only do it if we can manage without further debt.

A big thank you to all - it has helped enormously to hear different perspectives.