You’ve probably heard that you should always check your credit card statements when they arrive. But doing so can be a little overwhelming, especially if you have multiple cards. This article explains what to look for on your statement and helps make sense of any charges or fees that might appear.
Read the notice of the death
The notice of death is a great place to start. This section will show any changes that have been made to your account. If you see anything suspicious, such as a new monthly charge or an increase in your interest rate, contact the bank immediately.
Check the total balance due
One of the most important things to check in your credit card statement is the total balance due. Many credit cards charge a fee for carrying a balance, so it’s essential to know if you’re going to pay off your entire bill or not. If you are not going to pay off your balance, you must know what the interest rate is on that line of credit to plan and avoid unnecessary interest charges.
Review the credit card agreement
Make sure that you understand the terms of your credit card agreement. Credit card companies can change fees, interest rates and other terms at any time. It’s essential to read through this information every time you get a new statement to be aware of any changes.
Check for any clauses that allow the credit card company to charge late fees or other penalties. Check if any clauses allow them to raise interest rates on their own or cancel your card without notice if they feel it is necessary for “business purposes.” If a provision seems unfair or unreasonable, then contact customer service immediately and ask them to remove it from future statements.
Confirm that the executor or trustee is supposed to pay the balance
If you are the executor or trustee of a deceased person’s estate, ensure you’re aware of their credit card accounts and know how to pay off their remaining balance. It’s okay to have questions like, what happens to credit cards when you die? You fill the answer to this in your credit card terms. You may need to contact the credit card company and work out a payment plan so they can issue a check directly to your bank account.
As per SoFi experts, “you may be responsible for paying your deceased loved one’s credit card debt if you cosigned for a credit card, given the responsibility cosigning carries. Joint account holders also can be held responsible for credit card debt left after death since both account holders are equally responsible for paying the credit card balance.”
Review the settlement process for paying off the balances
You should check the settlement process for paying off the balances. Make sure that it’s fair and in your best interest, especially if you have a large balance. The settlement process is when a credit card company offers to settle your card debt for less than what you owe in exchange for a lump sum, usually about 30% of what is owed on the account. The company will typically negotiate with your creditors to accept this amount as full payment in exchange for not suing you or reporting it to any credit agencies as delinquent or charged-off.
You should also ensure that the executor or trustee is aware of their responsibilities. Some credit card agreements require that a person be appointed as an authorized payee, which means they will have control over how the bank manages your account. If that’s the case, they need to know about it to take care of everything correctly.