Debt After Death: What Happens To Your Debt When You Die

Debt After Death: What Happens to What You Owe Once You’re Gone

I am sure everyday people don’t wake up thinking about how they are going to die that day. While most of us make it through those 24 hours, some people aren’t so lucky. Quite a few of those unlucky fellows leave a fair amount of debt behind. You see, while you’re living your life and making monthly payments to creditors, your kind of forget that you may not be around to live out those full repayment terms. That’s an understandable thing to think. We see tragedy on the news, but believe whole-heartedly that something like that could never happen to us. Well guess what, the victims of the explosions, hit and runs, hungry bears, falling pianos thought the exact same thing. So if you have a fair amount of debt, then listen up. We are going to talk about what happens to your debt when you die.


Debt After Death: Statistics

You would not believe how many people die with outstanding debt. Here’s some statistics for you:

  • 73% of Consumer Die with Outstanding Debt
  • The Average Balance is $61,554 (With Mortgage Debt)
  • With No Home Loans the Balance is $12,825

So, what exactly is making up all this debt? I’m glad you asked. Here’s some more statistics:

  • Credit Cards – 68%
  • Mortgages – 32%
  • Auto Loans – 25%
  • Personal Loans – 12%
  • Student Loans – 6%

If you are wondering if I am just making this up, I am most certainly am not. All this data is based upon 220 million Consumers from Experian’s FileOne Database.


Debt After Death: What Happens When You Die?

So, let’s say you unexpectedly get hit by a bus, and you happen to owe $61,000 in debt. How tragic. Your family mourns for you, but then eventually they all start taking about money, because you you’ve got about $500,000 stashed away. So, what happens to that $500,000? Do your creditors automatically lose out because your dead? Can you just divide that $500,000 to your family immediately? No.

If you die, and have enough assets to cover your debts, then creditors get paid first. Meaning Your beneficiaries get whatever is left. So, in this case, if you owe $61,000 in debt, then your beneficiaries get about $439,000. Now that’s a good scenario for you. Here’s one that isn’t so great.

Let’s say, you are strolling along the road and a piano happens to fall right on you. Wham. You’re gone, dead, in sort of a comedic way. You’ve got $100,000  in credit card debt. Why do you have that much credit card debt? Well, because you probably have a problem. But that’s beside the point. Let’s say you’ve got about $50,000 put away because you want to give your child the best possible education when the time comes. You’ve chose not to deal with the credit card debt, because it would take away from the little nest egg you have. You can’t afford to both pay the debts down and give your kid a chance, so you make a choice.

So, once you are gone what happens to that debt if you do not have enough money to cover it all? Well, if you do not have enough assets to cover the debt, the creditors sort of lose out. That $50,000 isn’t going to cover that $100,000 you owe. At the same time, your kid kind of loses out to. That money is gone. Poof.

Not to worry, I am sure there are plenty of Government benefits they can take advantage of when school rolls around. They’ll just be in debt for the rest of their lives.


Debt After Death: How Does My Death Effect My Family?

Fortunately for you there is a bright side. And no, I am not talking about that bright light you may see once you die. I am talking about some good news for your family.  When you die, your family members do not become the beneficiaries of your debt. Meaning, your debt doesn’t get put under their name.

It’s important to keep in mind that things can get complicated and messy. Here’s an example. If your only asset is the home you and your family lived in, then that will be used to pay your creditors. It doesn’t matter if that’s Credit Card Debt or The Mortgage itself. Meaning your family must take over the mortgage, or they may even need to sell the home to pay off your debts. So just because the debt might not transfer over to them, doesn’t mean they won’t have to deal with it somehow.

If you have Co-signed on anything, then most likely the debt will be falling on the shoulders of the other signer. Properties where spouses share ownership, also handle debts acquired during a marriage. That’s kind of a terrible burden to put on anyone’s shoulders, especially your spouse’s.


Debt After Death: How to Protect Your Family

Is there any way you can make sure your family doesn’t have to deal with your mess? The best advice would be to make sure you aren’t in any debt. You can also try sticking to a budget while you are alive.  You may also want to consider life insurance and meeting with an estate planning attorney to make sure everything’s covered in the event of your death. That’s if you can even afford to do any of this stuff. Just keep in mind, good or bad, everything you do will affect your family in some way.


Death After Debt: Conclusion

Not planning for the worst now can really screw over the ones you love if something terrible were to happen to you. If you don’t have a will in place, the expenses to have these matters determined by the courts is outrageous. The administrative costs get paid before creditors and beneficiaries. Meaning even less for your loved ones. You really must ask yourself a very important question. If I died today, would my family be alright? If yes, then great. If your answer is no, then something needs to change.

Let us know in the comment sections below. Check Our Reviews page for more insight into trusted companies. Check our site for reviews of all kind.

Signature One Financial Review: Update

Signature One Financial Review: Update


In this Signature One Financial Review I want to talk about a Full Service Financial Firm that we have reported on in the past. Recently they have upped their game, amplifying their ability to make life easier for consumers across America. Just in case this is your first time tuning in, here’s a little about Signature One Financial in this Signature One Financial Review.

Signature One Financial is a nationwide full service financial firm located in Corona, CA. Signature One Financial takes pride in its approach to make the client’s needs first even when it means recommending a competitor to provide the financial service the client needs. Signature One Financial provides a wide array of financial services to its clients designed to meet their needs by tailoring the financial product around the individual rather than trying to sell a “one size fits all” financial product. Signature One Financial helps clients manage their debt and remove what may be the single biggest roadblock to financial freedom as well as design a retirement income plan utilizing tax advantage income strategies. So that’s a little background on Signature One Financial.


Signature One Financial Review: Transparency

Before I get into the details of what exactly Signature One Financial does in this Signature One Financial Review, I just want to talk about something that is incredible important. Signature One Financial has continued to cooperate and work with us, allowing us to conduct our extensive reviews. They have been completely transparent during the process of each Signature One Financial Reviews we have conducted. The level of transparency they give is not something we encounter all the time. Maybe only a handful of times this has happened with other companies. That’s why we continually give them 5 star ratings.


Signature One Financial Review: Services Provided

So now that we have covered the basic for those who many not be the most familiar with this company, we can now move onto more of the nitty gritty. The services provided by Signature One Financial.

So, what does being a full service financial firm mean? Well, it essentially means what you think it might means. They can pretty much help you with anything that is finance related. Do you have a massive amount of debt, and a need a solution? Signature One Financial can help you find one. Are you in the market for purchasing life insurance? Signature One Financial can help you. Are you beginning to thinking about your future, and where you should be putting your money? Signature One Financial have certified financial planners who have been working in the field for years. Here’s a list of some of the major services that Signature One Financial offers:

  • Debt Free Solutions
  • Emergency Savings
  • Health Insurance
  • Life Insurance
  • Medicare for Seniors
  • Retirement Planning
  • Fixed & Market Based Strategies
  • Personal Loans

One thing to note, all their business with insurance goes through Acquire Capital Insurance Services. A company that we believe to be trusted. Investment Advisory services are provided by Acquire Capital Management, Inc. 


Signature One Financial Review: Consumer Testimonials

Here’s a couple of consumer testimonials that confirms what we have been saying in this Signature One Financial Review.

“I got a personal unsecured loan from Signature One for 35k which i used to pay off my credit cards. My score was in the low 600’s i think bellow 630. my rate was 12% but I saved over 120 per month compared to my credit cards and my term was for 3 years. The Signature one agent said that was because their loan was simple interest not compound like my credit cards.”

“I have enrolled in this program through Signature One Financial with many doubts but so far, one out of my five credit card debts have been settled and the process was explained to me very thoroughly by my agent Chris Gaukler and everyone has been very understanding and patient. I’m hoping that everything will continue to go as smoothly as it has been and hopefully I will be debt free soon.”


Signature One Financial Review: Conclusions

In this Signature One Financial Review, The CFRB gives this Company 5 stars. Check Our Reviews page for more insight into trusted companies. Check our site for reviews of all kind. It’s great place to become more knowledgeable about the world of finance, and will shed some light on some of the scams out there. Check out the previous post by clicking here.

All in all, If you are looking for a company to help you out with some major financial decisions in your life, check out Signature One Financial.

Good Life International, Inc. Review

In this review of Good Life International, Inc. We bring to you a life insurance company that is located in the Los Angeles area. We have heard great things about Good Life International, Inc. So we thought, we’d investigate and see what we could find. They claim to be dedicated to making your financial and retirement dream come true. Okay, so what’s new? Haven’t we heard that a thousand times already? We have, but don’t go away just yet. The way they run business is a little different than most. They approach each client with the understanding that life can change and alter course. They are committed to helping you regardless of where you are at. Whether it be flying high or down in the gutter. They aren’t just going to bail on you like most big companies would do. That’s something we really value here at the CFRB. So what are consumers saying about Good Life International, Inc?

We didn’t find a whole lot of people willing to offer testimonies, but the ones we found all had very similar testimonies. Which is good. A sense of consistency is good in a company. One consumer stated, “I was thinking about going with another company that was probably just as credible. The people at Good Life International, Inc. won me over. They are so down to earth, and really wanted to help me.” Another stated, “I was a little intimidated at the idea of planning for retirement. When I went to Good Life International, Inc. that feeling went away. It was like hanging out with old friends. Everyone was warm and welcoming, and they helped me create a plan that was just right for me.” There’s different kind of positive experiences. Some people, in talking about companies, share how they were amazed at the professionalism and speed of the agents and reps, and others talk about the unexpected good time they had. We think this company really nailed the down to earth aspect, which so many companies strive to do. They also provided quality service to people who deserved. Bravo, Good Life International, Inc.

In this review of Good Life International, Inc., The CFRB Gives this Life Insurance Company a 4 star rating. Check Our Resources page for a list of trusted companies like, which have received 4 stars or better. Check Our Reviews page for more insight into trusted companies.