buti na lang walang utang ang magulang ko. hehehe.

hahahha… parang ito yung offer ng citibank.. insurance daw para pag tsugi na ang CM ma wipeout yung utang nya. meron kaya sila na convince dito? hehe

hmmm..makes me think..what is credit shield for? isn’t a kind of insurance that the relatives won’t be charged of the debt of the dead credit card holder? so that’s just a marketing strategy for the credit card companies?

or maybe i’m mistaken

Is there a law that requires the living relatives to settle the debt of their dead? If none. the debt should written off. Am I correct on this?

Hi Salve,

I have been an avid reader of your column. I try to make it a daily habit to read your column so I can be financially literate on how to handle my family’s finances. My goal is to retire early and homeschool my children when my daugther reach age 6 which is 2014. And just serve in our church ministry fulltime. My wishful date of retiring from the corporate world is age 40. And I pray that my family will be financially equipped by then.

I hope you can write something about Credit Cooperatives, and if it will be a safe place for my savings. My company at Del Monte Philippines have their own Credit Cooperative that is about 40 years old now. And I can see that it is managed quite good in my 6 years of membership. they offer as well 7% interest per annum that is also tax free.

I just want to know what are the pros & cons of putting my savings in a cooperative compared to a commercial bank.

Thanks,
Mildred Baja

Hmmm, it would be unfair to think that you’ll be paying the debts of others. That’s good, at least you don’t have to pay or you are not liable to pay. waaaah… kaya ayoko mgcredit card..dami consequences.

Outside of those debts which can legally be transferred to me, I don’t think I’ll even think of paying the debt of relatives. But with immediate family, even if it may not legally be transferred to me, I might give it a thought.
Why? Because indebtedness in families can have an effect on our personal life. Like if a parent who passed away had a loan with a bank, and there’s no estate to run after, I might want to mantain good relations with the bank and pay off the loan. I may be wrong, but if I don’t, it might make it harder for me to do business with that bank. I imagine there’s a dark spot in my application form hehehe

But the question is, how about loans to other individuals (not corporations)? Or loans of relatives/family to other relatives? For the sake of “family” peace, will you chip in?

For Mildred Baja,

I just want to share some of my thoughts about where to place your savings for retirement purpose. If you are confident that the Del Monte Coop can take care of your savings, well and good, especially at an interest earning of 7% tax-free. But as the saying goes ” dont put all the eggs in one basket” I suggest that you also put some of your savings in reputable Banks/Rural banks that could give you an equally reasonable interest rates. Better if you limit your savings placement at P250,000 (covered under PDIC insurance). If your money is really that big, spread out the amount to several banks at P250,000.00. You can also place your savings in few banks but under different accounts eg. yours, your daughter/son and husband.
if all is well, you can enjoy your retirement better and still find time to fulfill your community work.
Good luck and God bless

FW: Cancel your credit card before you die. It is recommended.

Now some people are really stupid!!!! Be sure to cancel your credit cards before you die.

This is so priceless, and so, so easy to see happening, customer service being what it is today.

A lady died this past January, and Citibank billed her for February and March for their annual service charges on her credit card, and added late fees and interest on the monthly charge. The balance had been $0.00 when she died, but now, it’s somewhere around $60…00. A family member placed a call to Citibank.

Here is the actual conversation that transpired:

Family Member: ‘I am calling to tell you she died back in January.’

Citibank: ‘The account was never closed and the late fees and charges still apply.’

Family Member : ‘Maybe, you should turn it over to collections. ‘

Citibank : ‘Since it is two months past due, it already has been.’

Family Member : So, what will they do when they find out she is dead?’

Citibank : ‘Either report her account to frauds division or report her to the credit bureau, maybe both!’

Family Member : ‘Do you think God will be mad at her?’

Citibank: ‘Excuse me?’

Family Member : ‘Did you just get what I was telling you - the part about her being dead?’

Citibank : ‘Sir, you’ll have to speak to my supervisor.’

Supervisor gets on the phone:

Family Member : ‘I’m calling to tell you, she died back in January with a $0 balance.’

Citibank : ‘The account was never closed and late fees and charges still apply.’

Family Member : ‘You mean you want to collect from her estate?’

Citibank : (Stammer) ‘Are you her lawyer?’

Family Member : ‘No, I’m her great nephew.’ (Lawyer info was given)

Citibank: ‘Could you fax us a certificate of death?’

Family Member : ‘Sure.’ (Fax number was given)

After they get the fax:

Citibank : ‘Our system just isn’t setup for death. I don’t know what more I can do to help.’

Family Member : ‘Well, if you figure it out, great! If not, you could just keep billing her. She won’t care.’

Citibank: ‘Well, the late fees and charges do still apply.’ (What is wrong with these people?!?)

Family Member : ‘Would you like her new billing address?’

Citibank : ‘That might help…’

Family Member : ‘ Odessa Memorial Cemetery, Highway 129, Plot Number 69.’

Citibank : ‘Sir, that’s a cemetery !’

Family Member : ‘And what do you do with dead people on your planet??? ‘

This may sound old-fashioned but for the sake of the family’s name, I think I would. Especially if you’re in business and part of your operations rely on credit to survive, I think you should give it a thought.

Even now, my mom still tells stories of how my grandfather’s good reputation in the business community helped her established her own business even when she only had like a few pesos to start with.

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abs, I used to subscribe to Credit Shield (offered by Citibank). And then a year later I realized that it wasn’t necessary, since I paid on time AND more importantly because my family won’t be liable for my own debts! So it’s just Credit Shield who gains through the extra percentage charge and Citibank who’ll benefit from the insurance claim in case the cardholder dies. You’re right, it’s marketed in a way to make the cardholder think it’s the responsible thing to do, but the reality is that it’s unnecessary.

hahaha… wow, genius! those citi marketing peeps should be the one running CITI’s risk management groups… baka naiwasan pa nila ang subprime. =D

Marlon,
Napatawa mo ako ng matindi sa kwento mo…. are you sure the family member was not talking to a robot? Lol… Next time those who are planning to apply for a credit card, go for the ones without the annual membership fee…and all its hidden fees. Will save you a bunch of headaches… and better yet, do not apply for a card. Pay in cash…. no cash, no purchase. In the end, your finances will be in better shape than those using the card (some people use card just to show-off)…

@ robert….

it’s a lot of fun also to collect points from credit card…and redeem them….one precondition though… you must pay in full the amount you owe every month without fail to make it fun and worthwhile…..
maybe some appliance might appear free after 1-2 years…. like a ref or aircon

[...] Paying for the debt of the dead [...]

hi,
id like to follow up on comment number 4..
apparently, my dad has left several credit card debts..and the collectors have not been so kind to listen and understand that he is already dead..for instance, citibank just kept on sending notices even after i have sent his death certificate thru fax..what more do you they want from us..both our parents are already dead and there is no way we could pay them..kung maldita lang ako, sagutin ko sana, cge samahan ko pa kayo sa sementeryo e..hayyy..somebody please advise..tnx..

For unsecured debts such as credit card debts, I personally think that the debts should be written off when the debtors die. Pedro’s debt is Pedro’s, not Juan’s, as they say. Anyway, the death of a debtor is a known risk of unsecured debts; that’s why banks are allowed by law to impose as much as 3.5 percent compounded monthly to help them cover these risks. Some banks sell credit life insurance to their cardholders to cover credit card debts; perhaps banks can allot a little from their profits to pay for these insurance policies instead of asking cardholders to pay them. They can also launch other risk management strategies to prevent high levels of debt in danger of being unpaid due to death.