When you pass away, your debt doesn’t just go away

Beware of racking up the debt. If you think that you’re out to beat the system, think again, especially if you’re thinking about even leaving your loved ones a little something.
Creditors will try to clear the debt through funds appropriated from estate or property. Outside of joined debt, and rarely, they even have the option to have existing family members pay for the debt. The only actual forgiven debt is when the deceased had nothing of value at all, and left nothing.
In any case, it’s a really scary thought that people can on a rare case, directly inherit debt. Even more so, when it’s indirectly. It also goes to show that financial responsibility is something that everyone should think about and always be aware of. The unexpected doesn’t just affect your loved ones on an emotional level, but it could also take its toll financially.
Scary. Very scary thought. I’d also be curious to think of how creditors stop this from happening. It’s not that you could predict “death” itself, but more so on if they quit loaning high risk individuals whom are racking up a lot of bills, or if they believe they can truly collect the money later on. I’m sure there are mathematical models out there for this just as insurance is based on mathematical models.
Photo Credit: (iandavid)