How to Pay Off My Bills Before Death

Bills and debt don't disappear when a debtor dies. This responsibility falls on surviving loved ones, and for this reason, many people have life insurance policies to help pay personal expenses after death. But if you don't want loved ones to worry about bills and debt after your death, take steps to pay off balances now.

Instructions

1

Get rid of credit cards. Regular credit card use can slow efforts to pay off bills. Take credit cards out of wallet and purses, and then use scissors to destroy the cards. Begin using cash and save before buying.

2

Ask for a lower interest rate and then increase your payments. Get on the phone with creditors to see if you qualify for a cheaper interest rate on credit cards. Getting a lower rate reduces how much you spend in interest each month. With this lower rate, pay more than minimum to get rid of debt faster.

3

Negotiate to settle older debts. Delinquent accounts such as unpaid judgments and collection accounts may resurface after death. Deal with these accounts now and contact old creditors or collection agencies to negotiate a debt settlement. Negotiate low and offer to settle debts for less than you owe. Know how much you can afford first, and then offer this amount. Start negotiations around 20 to 25 percent of the outstanding balance.

4

Sell assets to create additional income. Eliminating a few material possessions such as extra cars, a vacation/rental home, clothing, jewelry and electronics can produce enough cash to get rid of your bills.