Paying debt to avoid complications after death
@Masihi (4413)
Canada
March 11, 2012 7:33pm CST
I know I already mentioned that I want to be debt-free, but I didn't disclose one big reason why I want to do so. It's for legal reasons, actually. I don't want my kids to bare the hassle of fighting off debt collecting agencies and/or becoming victims of whichever debt rule that get changed regarding who pays off the debt after death. Hopefully I'll have another 40 or more years before I pass away but well, I'd rather be on the safe side and to also teach my kids proper money management at the same time.
I also hope to have all my funeral expenses paid for as well before I even get close to death. That is the LAST thing I want my kids to do - is to pay for my funeral. I hope Hubby takes steps to pay for his funeral as well...but thankfully there's no debt to his name, all my debts are in my name only.
Are you thinking that far ahead?
4 people like this
7 responses
@marguicha (223128)
• Chile
12 Mar 12
Hi Masihi,
In my country there are some insurances you must pay for, if you want some things. There is an insurance for car and house loans as well as for other loans that you ask from the Bank. There´s an amount that pays for a basic furial service if you are a worker. If you want something better, you pay the difference. I own my house so I don´t have debts. I try not to buy more things that I can pay for, even if it means not having a reasonable new TV or new clothes.
@marguicha (223128)
• Chile
13 Mar 12
I´m at a point of my life where I spend money on food and meds. And yes, undergarments of course. But clothes can last ages if you treat them well. 
1 person likes this
@babyanna (1216)
• China
12 Mar 12
Hi,Masihi~
Honestly,right now,I'm not thinking that far ahead.Main reason is that I'm still a student.My parents still give me anything I need(not in a spoiling way).So,I don't need to worry about my financial status.I am thinking about my future though.I want to start my business ASAP,so I can have a test-run first and see how it goes.If it doesn't work,I would have to prepare myself for job interviews and stuff.
My parents have led a frugal life.And having the mortgage paid off,my parents are pretty much debt-free.And I want be like my parents in the future.I don't like owing something to someone.Guess I need to work hard enough to pay off every bill of mine.And with the sky-high prices of the houses right now,I can already see how hard it would be.
@Masihi (4413)
• Canada
12 Mar 12
Ya, houses are extremely expensive, and well...Iknow this doesn't sound very ambitious, but I'm happy just renting a flat now. It's 2 bedrooms, but I'll eventually have to move to a 3-bedroom flat as our kids get older. That is good your parents taught you how to live a frugal life, and I know as you get older people and society would try to tempt you into getting all kinds of big stuff but at the end of the day it's not really worth it. Just remember that it's okay to live frugal, and it's okay to just live middle-class or lower-class, that doesn't reduce the type of person that you are inside. Besh wishes as you venture out into the big bad world!
1 person likes this
@babyanna (1216)
• China
12 Mar 12
Thank you very much~I still remember one of my foreign teachers/friends once told me how precious the campus life is,no need to worry about bills,meals,and all this kind of things.But yeah,one day we have to step into the society.And I hope I can stick to the frugal lifestyle just as you advised.
I don't care how big the house is.I think I would be very happy if I could have a small cozy condo after I start working.
1 person likes this
@carmelanirel (20942)
• United States
12 Mar 12
Actually that is a good idea to plan ahead, regardless how old one is or how much debt they have. I don't have a formal plan, but hope that I won't have to die the traditional way so my children won't be burdened with the debt that we have. Without a steady job, I can only pay off one debt at a time, so I am just doing the best I can..
2 people like this
@carmelanirel (20942)
• United States
12 Mar 12
Sure, we can share frugal tips, just give me another week, this is my last week of school, 
and then I will have a lot more time online..:)
and then I will have a lot more time online..:)1 person likes this
@myfb2009 (8296)
• Malaysia
12 Mar 12
Masihi, you have a very good plan. Indeed, i do feels that we shouldn't burden our children with any of our debts, when we are gone. That's why, i always advised my hubby to pay as fast as possible any debts that we have, as not to bother anyone, especially our own children. It is good that you are thinking far ahead. It is for the sake of our children's future. Everyone of us wants our children to have a bright and happy future, right?
@sherrybelle (707)
• United States
12 Mar 12
I'm on the same page with you. When I graduate from this life time I want to be prepared. I want to have everything paid off and I want enough money to bury myself as well as giving a financial gift to each of my children. My children won't be expecting any kind of inheritance from me so it would be a pleasant surprise for them if I leave something...to them.
I love my children and I want them to know that now...and...after I'm gone.
Those are the only real significant goals that I have before I check out.
@manaleli101 (146)
• South Africa
12 Mar 12
Good thinking you got right there.. Imagine not only being bombarded with the burial costs but with the debts as well. We all, well most of us parents, want to leave a legacy for our children and I think we do not want to leave a legacy of debts for our children. I think it is beter to leave them nothing than to leave them with debts.
1 person likes this
