Credit Card Debts

[tim2969]

Can someone confirm that a credit card debts die with you if you are within your limit do the company have an indemnity policy.

Cheers

[SCARFACE]

your query isn't quite clear, are you asking about a particular indemnity policy? you got me a little confused! please restate your question.

[Yinzer]

I always thought that they still are entitled to reclaim their money from your family, but it might be best to ask you credit card company since each company may have different policies on this issue.

[Oneeyedvic]

I am afraid it does depend on the card - Barclaycard comes automatically with a life assurance policy which pasys �10,000 on death - this will first of all cover their debt though - the family will get the rest.

 

I am afraid that in law though, the debts become part of the estate - so in answer to your question, NO, credit card debts, (as all other debts) do not die with you.

[Laura-sakura]

It's not the same but when I took out a loan I was practically forced to take out insurance which covers sickness and death and if I remember correctly the same was true with regards to my credit card.  Do you not have insurance?

[tim2969]

It is my mothers card the enquiry is about, she is breaking the bank to try and pay it off she insists she doesn't want to leave a debt to me or my sister she is 73 and in great health but has a limit of �8000 and a balance of �3500 I have told her to keep it running and that whenever she is not around to pay' the debt should disappear. I want her to have enough spare cash to enjoy her remaining years. 

[Gandy]

My mother died last November and her credit card provider pursued the debt and we paid it.  She also had a loan with a building society (uninsured) and this was written off.  I suppose that ultimately it is the lenders decision.

[WoWo]

They cannot get the money off anybody other than the person who has the debt. They are entitled to the money if there is any left in the estate but the debt does not transfer to another individual. So for example if somebody had �10,000 savings and credit card debt of �5,000 then when they die the CC company need to be paid by the executors of the will. But if they had �5,000 of debt but �10,000 of CC debt they could only get �5,000 at most. Its the responsibility of the will executors to pay it but if they can prove there was nothing in the estate to pay it that would be the end of it.
http://www.faqfarm.com/Credit/Card/1309