Month: May 2019

What Happens to the Deceased’s Credit Debt?

by Lorraine Foster

Existing credit debts of people who have lost their lives during taking out loans and paying debts take shape in different processes. If the person has taken out life insurance firstly, this debt can be covered by the insurance company. However, if such a move is taken into the payment scheme and the loan is transferred to the closest relatives of the person. That is the answer to those who wonder what happens to the deceased's credit debt. It is deemed appropriate to cover the existing debt by the relatives of the person considered as first degree. Of course, at these stages you need to proceed by taking into consideration the main issues. So what happens to the deceased's credit debt? Let's examine together. However, in order to understand the subject in detail, we recommend that you read our article to the end.

However, there is a situation that everyone who uses credit knows that an insurance premium is collected from you while the loans are made. This premium collection is the condition that your credit is secured in case of death. When the scopes are examined according to the content of the insurance policy , the insurance company may even pay to the relatives of the person. We recommend that you read the rest of our article and review the insurance sections on our blog pages in order to learn these situations in detail. So what happens to the deceased's credit debt ?


What happens to the deceased's credit debt?

deceased credit

If the deceased's credit debt arises , you should check to see if he or she has a life insurance policy . Because this will be one of the most important effects that will shape the course of the current debt. In particular, taking out life insurance during housing loan withdrawals will be regarded as a guarantee in a long-term debt repayment process. If such insurance exists, the death and reimbursement of the deceased shall be covered by the insurance company . but there is also a matter that we have already emphasized that if there is no life insurance, the current debt is transferred to the heirs of the deceased person.  


What should be considered in case of life insurance?

What should be considered in case of life insurance?

Life insurance is compulsory for credit withdrawals. However, it is an element that is generally recommended to be made in banks. This insurance; It is a compulsory insurance for housing, needs and cash loan requests. Because no one can deny the fact that he will eventually die. From this point of view, life insurance should be put in place in order to prevent the transfer of credit payment transactions to another person. However, in order for this insurance to enter into general operation, certain issues must be taken into consideration. Especially;  

  • Lack of suicidal and similar suspicion in the death of the debtor,
  • In cases where the credit holder has a life insurance policy and does not specify this disease, it will prevent the current insurance from going into operation.  

For this reason, in order to benefit from life insurance, it is essential to proceed by taking into consideration the main issues at all times. As we said, since life insurance is also mandatory when you take out a loan, it is very useful to first look into the insurance details.

Finally, the debts of the deceased can be transferred to the loan guarantor together with their relatives. The important thing here is the attitude of the person about the credit they have taken. Natural disasters such as earthquakes, floods and other disasters can be the case of the disappearance of all loan debts of the person who lost his life.  

Rental Investment for Retirement | Credit Loans

by Lorraine Foster




Rental investment is a relatively heavy investment. It's a long-term commitment, which makes it accessible. It also refers to a retirement supplement.


Summary of the page

  • 1 The operation of the rental investment
  • 2 What to avoid
  • 3 Know when to start

 Rental real estate investment is thus an interesting alternative for an annuity.

The FCPI is a side of the rental real estate that allows to lift the management and maintenance obligations but keeping the potential for added value.


The operation of the rental investment


The operation of the rental investment


The purchase of housing is done by a mortgage and will then be rented.

Such a provision ensures a return of money to offset the payment of monthly installments of the loan. However, the sum is not always enough, therefore one must think of investing oneself personally.

When the repayments come to an end you still receive the rent, without paying the bank, which makes it an annuity that is complementary to your retirement.


What to avoid


What to avoid


An additional cash inflow however means that you will have more taxation even if the monthly payments are higher than the rents.

A preliminary calculation is thus to be made taking into account a reduction of 30% for a micro-land scheme. The real diet is another option. This allows the deduction of other interest on the loan on rental income.


Know when to start


Know when to start


If your retirement age is 65, the project should not start after 50 years for a loan over 15 years or after 55 if you can pay monthly payments over 10 years.



Effective plan to pay your debts

by Lorraine Foster
Debts, depending on the reason that led you to have them, can be a relief or a concern in your life.

However, they all have something in common: you must pay them on time

However, they all have something in common: you must pay them on time Regardless of the reason that made you acquire a debt, you should keep in mind that compliance is the basis of success and no concern in this situation. However, we know that, like many of us, sometimes you are struck by the debts that you must cover and these accumulate causing great imbalance. That is why today we want to share you with an effective plan that, if fulfilled perfectly, will help you out of trouble in less time than you think. Pay attention to the following information:

1- What is your saving capacity?

savings The first thing you should do is separate at least 10% of your monthly income. Do you think you can't do it? Check how much you spend on ant spending such as morning coffees, cigarettes or going out with friends. It's not that you stop having fun, but you will have to make some sacrifices to achieve it.

2- Write all your debts

debt List all your liabilities. For each of them you must do the following operation: the amount of the debt between the monthly payment or the minimum payment. The result is the months it will take to settle the debt.

3- Hierarchy the debts detected

Put first the debt that requires the shortest time to pay according to the previous operation.

4- The solution

In the case of the number one debt, pay the minimum plus the 10% you managed to save with your spending cut. Repeat this step until you fully pay off your first debt. Meanwhile, it is very important that you do not suspend the minimum payment of the rest of your debts. Although it is generally recommended to avoid the minimum payment to the maximum, in this case it is used under the assumption that you cannot make a larger payment.

5- Follow in order

Now that you no longer have the number one debt, you must go to the number two debt. To this liability you must allocate the minimum payment, plus the amount you made for debt one (minimum payment plus the 10% you obtained from your spending cut). Repeat this step until liquidated. We also know that sometimes you need extra help that gives your income more fluidity, at that time our advice is that you acquire loans that really help you out of trouble, credits that you assume intelligently.