My mother is 78 years old and has one major credit card with Chase current balance is $16,575.00 . Mom is the only person on the account as our father passed away 25 years ago.
Mom has lived with me for the past 10 years. Her only income is her social security each month.
She always pays the minimum or a little more on her credit card each month so her credit is good. Unfortunately at 10.24% she is rarely reducing her balance.
My bother and I are willing to pay off her card and have her send us a check each month interest free until we are repaid. At the time of payoff we will cut up the credit card and ensure Mom only uses her debit card from her saving account for future purchases.
If my mother passes away prior to paying her credit card what happens to the balance owed?
I am not listed anywhere on her credit card but I am listed on her saving account so that if she is unable I can write checks for her. Do I have any personal risk to her credit card debt?
How do my brother and I negotiate a lower payoff amount for taking the age related risk away from Chase?
The good news is that you have no personal responsibility for the debt. When your mother passes away the creditor can only look to her estate for payment, not you or your brother.
If you wanted to settle the debt you will probably need to let the card get 90 days behind before you can get a reasonable deal out of Chase. You should expect to have to pay about $10,000 in a lump-sum settlement and this settlement will result in bad credit for your mom.
The worst part about the process will be the collection calls and letters. They are just stressful to live through for most people.
The real question here is what kind of assets does Mom have laying around and is it a reasonable approach to spend $10,000 to settle this debt or will she potentially need that money to care for her in case you are unable to care for her?
There are options here but I just need a bit more information.
Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.
P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.