Your unsecured (credit card) debt dies when you die (usually)

[youbet]

Originally Posted by JustCurious

youbet, the answer is obvious

Easy for you to say!

I would even suggest that she get a card in her name only, without you as an authorized user. That way, there would be no confusion at all that it is her card, and her card only.

Here's the deal on her card. Years ago we read that she should have her own credit, so she applied for a card. On the application, it asked if she wanted a second card to be issued to another person and she filled in my name. None of my job, financial or credit history was given and I signed nothing except the back of my card when it arrived. She's had that for many years and I don't think I have ever used the card they sent with my name on it.

Gosh, I hate to open up this can of worms. We use our cards all the time and have had them a long time.......one since 1970. Frankly, we just haven't thought much about the details other than making sure the credit limits were high enough to easily cover international travel. Then we just use 'em and pay the bill in full every month. It gets to be kind of a routine.

But if she needs to get another card, this time she can fill out the application and not request a card for me. I sure don't need it. In fact, we don't need anymore cards. I just wouldn't want her to have any issues if I get hit by the bus first.

Thanks for your comments.

[youbet]

Originally Posted by SecondCor521

PS -- youbet, sorry if I sounded blunt in my first paragraph above. I've had to deal with death, sickness, and divorce in my own life and will have some upcoming deaths to deal with and that is how I react.

No, no, not too blunt. I know what ya mean.

While not really interested in managing our finances, DW does know how to drive a Bobcat, back a trailer and write checks on our main brokerage account! So, one way or the other, she'd get me in the ground if she had to do it herself or write a check to the undertaker!

Perhaps one way to solve this would be for her to write her credit card company and ask if my death would affect her credit card in any way. As long as they say no, she should be good to go as she has a pretty high credit limit on it. If they say yes, she could find out why and take the appropriate action to remedy.

Thanks for the comments and discussion. We've never been through any of this, so it is indeed helpful to learn from others.

[WM]

FWIW, my MIL has other debt on her credit record, since the house mortgage was in her name (now paid off) and they lease a car, also in her name (paid in full every month). So it's not as though she'll be starting with nothing. And right now, her credit report reflects my FIL's accounts and they are all in good standing because he always paid something every month, even if not the minimums. So we will be applying for a card for her very soon. The worst they could do is cancel it on her, but I suspect instead they will just jack up the interest rate if her credit tanks. Which won't be much of an issue, since the last thing she will do after all this is carry any balance!

Also, imagine the nightmare had my MIL actually been the one to go first - all the debt is still there AND all the assets would then have been my FIL's, subject to creditors. Definitely good to plan for either scenario.

This whole thing has definitely made DH and I more aware of how we have our finances structured, and made him realize that he is not as up on our finances as he thought. He is looking for a little more tutoring!