People often think of their golden years as years when they will live beyond their debt. They’ll have paid off their homes, saved for retirement, finished paying back student loans, etc. They’ll be done living with debt or living from one paycheck to the next. That’s one of the perks of retiring.
Unfortunately, the statistics tell us this is just not happening for most people. In fact, the average person in the United States is going to pass away with $62,000 in debt.
Two key points about debts and death to keep in mind
While there are many ways to break down a statistic like that, there are two key things we’d like to focus on here. First, the stats do show that most people (73%) will have debt when they die. It’s rare to get through life without accumulating some type of debt. Granted, that may just mean outstanding credit card debt for some, but it’s still worth noting.
Secondly, most of the debt is from home loans. When you take them out of the equation, the average that people owe is just over $12,000. This means that roughly $50,000 of everyone’s average is just because people are still trying to pay off their homes when they pass away.
Children often think of inheriting the family home, but they may find that the bank still owns most of it. Further, they may not fully understand the interplay between their loved ones’ estate and their loved ones’ creditors.
Seeking debt repayment from an estate.
It can be complicated to get payments from a person’s estate, and the timeline to do so can be tight. It is important to know exactly what legal options you have for debt recovery. An experienced advocate can offer invaluable guidance.