What options do I have to deal with debt after my partner dies?
One of the saddest times in life is the death of a partner; and when that happens, options for dealing with debt are a real factor in spite of all the grief! A friend of mine, Tanya, lost her husband last year and they had issues with adequate life insurance. I won’t go into too much detail but I will say that the insurance company would not even cover the funeral. The funeral cost more than $15,000 and that was just the beginning. With his death they lost more than half of their income and still had significant credit card debt and some lingering university debt. Creditors came calling very soon after the funeral and tanya came to see me for advice.
Decide what you will do and decide quickly!
Tanya had very little time to make up her mind regarding what she wanted to do and what her options were. Selling her home was an option and she contemplated this because the market in the GTA had been strong and was on a rise. She had more than enough equity in her home to pay off all of her debts and to then move on with her life. She quickly dismissed this idea because her husband and her made many memories in the house and she was not ready to let go. Unfortunately her credit was not adequate to get a home equity loan from the bank.
A second mortgage is the answer.
In a matter of a couple of days LM Financial Services INC. was able to offer her a second mortgage. This loan would solve all of her financial problems with the added plus of ushering her back to the bank within a year…with good credit! Tanya is in a good place financially now and her home has gone up even more in value. With a budget that made sense and some discipline, in 1 year she has been able to take the worst moment in her life and make it that much better by not adding undue stress to a terrible situation. Check out what your options are at LM FINANCIAL SERVICES.