When someone dies, who has to pay their credit card bill?

The court keeps the person's money or assets in a trust until all debts are paid, then the rest is disbursed to the heirs or gives it to whoever the deceased person has stated in their will. So the person paying bills would be the Attorney or the Trustee.

In the same way one inherits one's goods through a will or not, the debts go to the heirs of the deceased ones.

For the most part, credit cards are issued as unsecured9quot;. This means that the card was issued by the lender without requiring any collateral. Therefore, unless you are a co-signer on the card itself, you would not be responsible for payment of the balance.

The debts of the deceased are placed into probate, where the estate's executor follows the directions of the probate court to pay off creditors.

When someone dies, their estate - if they had one - is held liable for the debts that they owed. The property cannot be distributed until debts are paid for by the estate.

Usually when someone dies in the family there spouse would take care of their credit card bill. If you where not married someone in your may have to pay off their credit card bill. You may have to also decide in court depending on which family member is willing to pay.


Should you be paying bills with credit card to earn points?

When do you have to pay credit card billsPosts: 14 Joined: Fri May 25, 2012 6:13 pm Location: Tampa, FL

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Should you be paying bills with credit card to earn points?

When do you have to pay credit card billsPosts: 1332 Joined: Tue Jul 05, 2011 12:28 pm Location: New York

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When do you have to pay credit card billsPosts: 14 Joined: Fri May 25, 2012 6:13 pm Location: Tampa, FL

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When do you have to pay credit card billsPosts: 875 Joined: Thu Apr 30, 2009 2:32 pm Location: Texas

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When do you have to pay credit card billsPosts: 79 Joined: Wed May 25, 2011 11:55 am Location: Miami, FL

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When do you have to pay credit card billsPosts: 14 Joined: Fri May 25, 2012 6:13 pm Location: Tampa, FL

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When do you have to pay credit card billsPosts: 1332 Joined: Tue Jul 05, 2011 12:28 pm Location: New York

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When do you have to pay credit card billsPosts: 14 Joined: Fri May 25, 2012 6:13 pm Location: Tampa, FL

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When do you have to pay credit card billsPosts: 875 Joined: Thu Apr 30, 2009 2:32 pm Location: Texas

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US Bank: Cash+ (utilities, phone, internet, restaurant, 5%; drugstores, 2%).

FIA Card Services: Fidelity Amex (everything, 2%); Fidelity Visa (everything, 1.5%).

Chase: Freedom (rotating, 5%); Amazon (Amazon.com, 3%); PriorityClub (IHG hotels, 5 points/dollar); Sapphire (not in use).

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What Happens If You Can’t Pay For Your Credit Card

Debt left unpaid can quickly wreak havoc on your financial standing unless you take the necessary steps to control it.

It is very alarming indeed when you suddenly find yourself at arms length from your death sentence: this month’s astronomical credit card bill. Impulse shopping finally caught up, just when you forgot to factor in the compounding interest to your computation. Reeling from panic — nope, you don’t need to go there just yet. You can still remedy the situation!

My bill just came in and it’s too large to settle, help!

Breathe first, then take a good look at your credit card bill. There are two important details you need right now: the Minimum Payment (or Minimum Amount, or Minimum Amount Due ) and the Due Date .

Before banks issue you a credit card, they’ve already taken into account how much you’re earning per month, and they will give you a ceiling of how much you can charge on credit based on your monthly salary. If you happen to max your limit, banks already made sure you’ll be able to more or less settle the minimum payment, which is roughly about 5% of what you owe.

If you feel daunted by your credit card bill, it’s OK to settle it in installments. Just be prepared to shoulder the interest rates and other finance charges.

Gather your wits and determine how much you can actually pay for the month. This amount should be greater than or equal to the minimum payment indicated on your bill. And make sure to settle it before the due date!

After getting through this month, you also need to brace yourself for the months ahead. Avoid using your credit card until you feel confident you’ll be able to settle the remainder of the debt. Otherwise, you’ll be back at where you started the month before.

And if you’ve settled only the minimum amount, you’ll notice that this hardly made a difference when you receive your next bill. Paying for the minimum amount due will only be enough to pay for the interest and finance charges, and maybe a nick off the base amount that you owe. So in planning ahead, make sure to allocate a bigger portion of your salary to pay off a couple of thousands more than the minimum amount and settle your debt sooner.

Another option you can consider is having a balance transfer. Several banks such as Citibank, BDO, BPI, EastWest Bank, Metrobank and HSBC allows you to convert your credit card debt into manageable fixed monthly payments. Some banks would even allow you to transfer your balance from a different bank.

Balance transfers are a good way wiggle yourself out of debt. Rates average at 0.6% per month, which are lower than most credit card#8217;s 3.5%. Of course, you need to have a decent credit rating to get approved. And make sure to do your homework first to compare rates and compute if you’re getting yourself a good deal and not getting yourself deeper in debt.

What will happen if I can’t pay even the minimum amount by the due date?

This definitely sounds like trouble — yes, it is, and it has several implications.

“The day after your due date, the bank’s system will immediately tag your account as unpaid if no payment has been posted to your account,” Credit Card Association of the Philippines Executive Director Alex G. Ilagan told iMoney via email. “After another 30 days, your account may be blocked and you can no longer use your credit card,” he said.

If somehow you’re able to turn this around, and managed to pay at least the minimum amount couple of days late, or within the 30 day window, then good for you! You have averted the imminent danger of defaulting and the hassle of having to reapply for a credit card. But do take note that this incident will reflect negatively on your credit score. To know more about credit score and credit history, read Credit Reports In The Philippines — What You Need To Know

Aside from getting a negative rating, late payments are also slapped with penalty fees which can range from 4% to 7% of your total amount due, depending on your bank. Add this to the 2.5% to 3.75% compounding interest you’ll incur per month, and you’ll shell out an extra 6.5% to 10.5% on top of your debt each time you pay late. (And if you only settle the minimum amount, it may not even be enough to cover the penalty fees!)

However, if you’re really strapped for cash, and after three months, you’re still unable to pay for your credit card, then your debt will now be tagged as default. Being in default means you failed to pay your debt obligations at the agreed terms. For credit card accounts, this means you failed to pay the at least the minimum amount due for three consecutive months. And this will have serious consequences, for both short and long term.

“If you fail to pay at least the minimum amount due on your credit card for three consecutive months, your account will be cancelled and your name will be included in the negative file which is shared with other banks,” Mr. Ilagan said. “This will prevent you from applying for new cards or other types of loans,” he added.

So, aside from being unable to use your credit card once your account is suspended or eventually cancelled, but you will have to reapply again if you want to use your card in the future. And it will be much harder to get approved this time around, not just for a credit card, but for all types of loans, such as personal, salary, housing, or auto loan, with any bank.

Banks will be cautious to lend you money, not just the one you defaulted on. This can hit you hard especially once you need to borrow money for an emergency, for example when you need to fix your home after it gets damaged by storms or floods, or if someone from your family gets hospitalized for a serious condition.

How can I prevent this from happening?

As soon as you realize you won’t be able to pay for your credit card bill, the best option to take is to negotiate with the bank for a restructuring of your debt.

“This will involve providing the bank with proof that you can repay your debt if you are given a chance to pay it over a longer period in instalments, usually ranging from 12 months to as long as 60 months depending on the size and age (number of months past due) of your obligation, your source of repayment (e.g. your present income, co-maker’s income, properties, other sources, etc.) and the internal policies of the debtor bank,” Mr. Ilagan said.

Banks would be more than willing to accommodate a negotiation rather than having their clients default on their debt. And make sure you stick to whatever new arrangement you made with your bank. This means paying the specified amount within the date agreed upon. Otherwise this will spell more trouble for you.


Credit card bill: Do I pay “minimum due,” “current balance” or “balance on last statement”?

When do you have to pay credit card bills

When do you have to pay credit card bills

It#x2019;s always a painful moment when you check your credit card bill at the end of the month and see a shockingly high balance. You spent how much? Who knew those plane tickets to a friend#x2019;s wedding , a few dinners out and those cool new shoes would set you back a thousand dollars, or more?

The shock of the high number, aka your #x201C;current balance#x201D; compared to your #x201C;minimum payment due#x201D; may scare you into paying the minimum, but that would be a mistake #x2014; because interest will keep accruing on the rest of your balance. Miss a payment and you#x2019;ll face a late fee of about $25 for a first offense. And if you don#x2019;t pay up for a few months , your credit score will take a hit of up to 110 points, Equifax notes.

We get it. Maybe you got so excited about the cash back or rewards on your card that you spent more than you planned just to get those bonus miles or a great rental car deal . But credit card mistakes can cost you money. That#x2019;s why it#x2019;s so important to be an informed consumer and make sure you know exactly what to do to use your credit cards in the smartest way possible.

Ideally, this means charging stuff on your card to get rewards each month, but then paying off the balance in full at the end of the month before you get hit with any interest charges. #x201C;Job number one for any credit card holder is to pay your balance off as soon as possible,#x201D; Matt Schulz, a senior industry analyst for CreditCards.com said via email. #x201C;The most important thing to know is that if you pay your statement balance in full and on time every single month, you won#x2019;t pay interest.#x201D;

When you go to pay off your balance, though, you may find something weird online. You#x2019;ll probably have two different balances listed: current balance and balance on last statement. And, when you make your payment, you may have to choose between which balance to pay. #x201C;Understanding the difference is important,#x201D; Schulz explained, #x201C;because it helps people make the most informed decision possible in regards to paying off their credit card balances.#x201D;

Current balance v. balance on last statement

When you see two different numbers for balance on last statement versus current balance, it means you used your card after your last statement closed.

#x201C;The #x2018;balance on your last statement#x2019; is the amount that you owed when your most recent monthly billing cycle closed and your monthly card statement was generated,#x201D; Schulz said. For example, if your billing cycle runs from the first of the month to the 31st, it#x2019;s the amount of charges that processed on your account through the 31st of the month when your billing cycle closed.

When do you have to pay credit card bills

Your #x201C;current balance,#x201D; on the other hand, takes into account not just the total charges in your last billing cycle but also charges you have made since the billing cycle came to an end as well as fees incurred and any payments you have made since your billing cycle ended.

So If your billing cycle goes from the July 1 to July 31 and you#x2019;re looking at the credit card statement on August 5, the current balance will include charges from July 1 through August 5. This means, as Schulz said, that your #x201C;current balance#x201D; is everything you owe right then, at the moment you#x2019;re looking on the site.

Schulz advises paying your current balance if you can, because that will get the total amount you owe down to $0.

If you can#x2019;t swing that, however, don#x2019;t worry. #x201C;It#x2019;s still good to pay off just your balance on your last statements. That would keep you from rolling any balance over from month to month and accruing interest,#x201D; Schulz said . While paying the balance on your last statement would mean you don#x2019;t pay interest, it doesn#x2019;t reduce your balance to $0 because you still owe charges and fees that have posted to your account since the last statement was generated.

Of course, if you pay off your #x201C;current balance#x201D; and then make a new charge the next day, you#x2019;ll once again owe money on your card, so it#x2019;s not practical to pay your current balance down if you#x2019;re going to keep charging stuff #x2014; unless you feel like signing in to your credit card and making small payments every day for the charges that posted that day, you#x2019;ll always have a #x201C;current balance.#x201D; But, the upside will be that you#x2019;ve already paid off some of your purchases rather than waiting until the end of the month to do so.

Ultimately, though, it#x2019;s up to you how you want to structure your payments. #x201C;There#x2019;s emotional satisfaction in getting your current balance down to $0,#x201D; Schulz said. #x201C;However, if you#x2019;re just trying to avoid paying any interest on your purchases, all you need to do is pay your statement balance in full on time every time.#x201D; If you can do that every month, you#x2019;ll be well on your way to a top credit score .

Sign up for the Payoff #x2014; your weekly crash course on how to live your best financial life. Additionally, for all your burning money questions, check out Mic#x2019;s credit , savings , career , investing hubs for more information #x2014; that pays off.