What About The Fate Of Credit Card Holders’ Heirs?
We cannot deny that almost all stores have payment methods by credit card and a take card payment to facilitate payment. It also makes people make credit cards to meet their needs. However, we must also consider some things that we cannot predict such as death. All debtor obligations must be completed. If the credit card holder has passed away, then the obligation will automatically shift to the heirs.
The liability of the heirs to settle the debt burden can be replaced by the insurance company if the credit card customer has used credit insurance products during his lifetime. Insurance products for credit cards have the same mechanism as credit insurance in general. Its main function is to pay off debts if the customer dies or suffers misfortune which makes him unable to repay the dependents.
The second option, debt cancellation. To make this effort, several stages must be passed and are not easy. Several criteria must be fulfilled by the heirs of the customer to serve the debt relief.
Regarding this second option, basically all types of loans, including credit cards, can be written off from the debtor or heirs.
Although there are consequences that must be borne in the future, namely a bad record that is embedded in the Debtor Information System. As a result, debtors and heirs who are responsible will find it difficult to get credit from any formal financial service institutions, including banks or financial institutions (multi-finance) because they have a track record of bad loans.
Calculations regarding interest or penalties for late payments charged to heirs can still be discussed with the bank if you want to get relief.
Regarding debt removal options, this is regulated in regulations. Each bank also has special procedures prepared to deal with such situations.
To anticipate the imposition of credit card bill arrears to the heirs of the debtor dies, the customer needs to consider credit insurance products. By paying insurance premiums, credit card debtors will be safe from the risk of leaving the debt burden on the heirs left behind.
Credit insurance products are usually offered to prospective borrowers when applying for a loan. The bank does not require customers to buy insurance products for credit cards unless there is bundling cooperation with certain products.