Undoubtedly, the death of a loved one is a real pain and worry for the immediate family. Especially in a situation where the deceased person has left behind financial liabilities in the form of unpaid credits or loans. In addition, many deceased people do not confide in their financial problems, even to their immediate family, so that only after their death come to light unpleasant surprises in the form of debts and unpaid loans.
It is therefore worth checking in advance what is happening with the debts and financial obligations of deceased family members.
Payday loans and non-bank loans
Such financial liabilities are not secured in the event of the borrower’s death. Of course, some non-bank loan companies also offer additional life insurance. However, such insurance is rarely offered.
Payday loans popular in our country do not have such insurance at all. Therefore, after the death of the borrower, the obligation to pay the payday pay falls on the heirs. Unfortunately, sending the death certificate to the borrower does not end the case. It does not mean that there is no need to repay the obligation.
As a rule, these types of loans are not subject to additional collateral in the event of the borrower’s death. However, it is very common for banks to offer their clients an additional life insurance policy.
In the event of the borrower’s sudden death, this policy guarantees repayment of the loan. It is a good solution for both the bank and the borrower and his heirs. They do not have to worry about paying off the loan taken by the deceased person.
Of course, a loan with an additional policy is more expensive, but when we decide on this option, we have a calm head and we do not have to worry about paying off the loan we have left. Of course, the bank can protect itself additionally and require a giraffe who will repay the loan after the borrower’s death.
These types of loans are secured. The operating principle is similar to securing a mortgage. Here, the bank has priority in satisfying its claims in the event that a person buying a car under a car loan dies.
Banks provide a mortgage in many ways. Undoubtedly, they want to be sure that the loan, which is taken for many years, will be repaid in full. Therefore, most often young people with a permanent source of income can apply for a mortgage. Of course, death does not choose and people of the prime of life who do not exceed 50 years of age also die.
In the case of a mortgage, the bank has collateral in the form of real estate sales opportunities. The bank covers the rest of the outstanding loan from the money obtained in this way.
Inheritance of debts
Whoever inherits debts depends primarily on whether the deceased left a will. If he left his last will written down, all this will be passed on to the person indicated in the will.
It is worth remembering here that a person inheriting debts corresponds only to the height of the drop. So, even in a situation where the deceased even had very large debts, the heir accepting the inheritance, in the worst situation will turn out to be zero.
Of course, our loved ones rarely talk about their financial problems. That is why we usually have no information about loans and advances remaining to be repaid. It is worth checking carefully all the documents we find in the house of the deceased.
In addition, it is worth reviewing the correspondence that comes to the address of the deceased person. Often, creditors speak for themselves when payment is delayed.