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The Independent
4 days ago
- Business
- The Independent
Experts suggest how you should deal with debt after a loved one dies
Navigating the financial complexities that arise after losing a loved one can feel like an insurmountable task when dealing with grief. Yet, understanding the immediate financial implications of debt becomes essential during such times. Two financial experts offer guidance on managing debt. This includes everything from assessing liabilities to understanding wills and identifying situations where payment may not be required. First steps: Pause, notify and organise Handling financial matters after a loved one's death can feel both overwhelming and daunting. 'In England and Wales, obtaining grant of probate or letters of administration should be the priority, as banks and lenders will normally only take instruction from an executor or administrator,' explains head of private clients at St. James's Place, Iain McLeod. Securing this legal documentation allows the estate to be managed properly – and prevents delays when dealing with financial institutions. External relations manager at Money Wellness Daniel Woodhouse echoes the need for clarity and swift communication. 'The first thing we'd suggest is letting any creditors know that the person has passed away,' he says, 'they'll usually pause the account while things are sorted, which gives you some breathing space.' He advises obtaining several official copies of the death certificate early on, as creditors may request one. Once notifications have been made, it's time to assess the full scope of the deceased's financial obligations. 'Start pulling together any paperwork that shows what debts or accounts were in their name,' says Woodhouse. Accessing a credit report is also helpful for building a complete picture of what's owed. Who owes what when it comes to a deceased person's debt is possibly the most common question. 'Debts are not inherited in the UK,' says McLeod. 'Family members can only be responsible for a deceased person's debts if it was a joint loan or agreement, or provided a loan guarantee, for example.' However, the rules are strict. 'If someone dies, their debt becomes a liability of their estate,' he explains. 'The Personal Representative of the estate will use the assets of the estate to help settle the debt. If the estate does not have sufficient funds, it becomes an insolvent estate. In that situation, there is a prescribed order for how the debts are to be repaid.' What happens to joint debts? Responsibilities are different for shared debts however. 'If you had a joint loan or shared overdraft with the person who passed away, you'll usually become responsible for the remaining balance,' says Woodhouse. 'It's really important to speak to the lender and let them know what's happened. Most will be understanding and may be able to offer more manageable repayment options.' Credit card debt, however, is more nuanced. 'With credit cards, these are only ever in one name – however, the credit provider may allow a second card for a partner or spouse to use,' says McLeod. 'The debt is the responsibility of the estate of the deceased primary cardholder. Additional card holders may consider applying for a new credit card in their own name if eligible.' But being an additional cardholder on someone's credit card isn't the same as a joint debt. 'You wouldn't normally be liable for the balance in that case,' says Woodhouse. Can inheritance be claimed by creditors? The short answer is yes, but only indirectly. 'Creditors can't go after beneficiaries directly,' says Woodhouse. 'But debts must be paid from the estate before any inheritance is passed on. 'If money is handed out too soon, there's a risk it could be claimed back to pay off outstanding debts. That's why it's so important to follow the right process.' McLeod underscores the legal implications: 'Great care should be taken in the administration of an estate which may be insolvent, and seeking legal guidance where appropriate is advised. 'Executors are strongly advised to receive written confirmation that any debts are repaid or written off before any distributions can be made to beneficiaries.' If assets have been distributed without settling all the estate's debts, McLeod warns that the executor could be personally liable. Mistakes to avoid There are common mistakes that are important to avoid when it comes to managing posthumous debt. ' One of the most common mistakes is paying debts out of your own pocket straight away, thinking you have to – when in many cases, you don't,' says Woodhouse. 'Another is putting it off completely because it all feels too overwhelming. The best thing you can do is take it one step at a time, keep a record of who you've spoken to, and get the right support early on. You don't have to go through it alone.' If you're struggling with debt after the loss of a loved one, there are support systems available. ' Charities like Cruse or Marie Curie can provide emotional support when you're grieving,' says Woodhouse. 'It's also worth checking if you're eligible for the Bereavement Support Payment, especially if you were the partner of the person who died. It's a tax-free payment that could make a real difference. You can find more information on
The Independent
4 days ago
- Business
- The Independent
How to deal with debt after a loved one's death
After losing a loved one, the last thing on anyone's mind is financial admin. Yet for those who are in the midst of grief, the financial consequences of debt can be both immediate and emotionally charged. From understanding your liabilities to navigating a will and knowing when not to pay, two financial experts break down how to deal with debt after losing a loved one. First steps: Pause, notify and organise Handling financial matters after a loved one's death can feel both overwhelming and daunting. 'In England and Wales, obtaining grant of probate or letters of administration should be the priority, as banks and lenders will normally only take instruction from an executor or administrator,' explains head of private clients at St. James's Place, Iain McLeod. Securing this legal documentation allows the estate to be managed properly – and prevents delays when dealing with financial institutions. External relations manager at Money Wellness Daniel Woodhouse echoes the need for clarity and swift communication. 'The first thing we'd suggest is letting any creditors know that the person has passed away,' he says, 'they'll usually pause the account while things are sorted, which gives you some breathing space.' He advises obtaining several official copies of the death certificate early on, as creditors may request one. Once notifications have been made, it's time to assess the full scope of the deceased's financial obligations. 'Start pulling together any paperwork that shows what debts or accounts were in their name,' says Woodhouse. Accessing a credit report is also helpful for building a complete picture of what's owed. Who pays: The state or the family? Who owes what when it comes to a deceased person's debt is possibly the most common question. 'Debts are not inherited in the UK,' says McLeod. 'Family members can only be responsible for a deceased person's debts if it was a joint loan or agreement, or provided a loan guarantee, for example.' However, the rules are strict. 'If someone dies, their debt becomes a liability of their estate,' he explains. 'The Personal Representative of the estate will use the assets of the estate to help settle the debt. If the estate does not have sufficient funds, it becomes an insolvent estate. In that situation, there is a prescribed order for how the debts are to be repaid.' What happens to joint debts? Responsibilities are different for shared debts however. 'If you had a joint loan or shared overdraft with the person who passed away, you'll usually become responsible for the remaining balance,' says Woodhouse. 'It's really important to speak to the lender and let them know what's happened. Most will be understanding and may be able to offer more manageable repayment options.' Credit card debt, however, is more nuanced. 'With credit cards, these are only ever in one name – however, the credit provider may allow a second card for a partner or spouse to use,' says McLeod. 'The debt is the responsibility of the estate of the deceased primary cardholder. Additional card holders may consider applying for a new credit card in their own name if eligible.' But being an additional cardholder on someone's credit card isn't the same as a joint debt. 'You wouldn't normally be liable for the balance in that case,' says Woodhouse. Can inheritance be claimed by creditors? The short answer is yes, but only indirectly. 'Creditors can't go after beneficiaries directly,' says Woodhouse. 'But debts must be paid from the estate before any inheritance is passed on. 'If money is handed out too soon, there's a risk it could be claimed back to pay off outstanding debts. That's why it's so important to follow the right process.' McLeod underscores the legal implications: 'Great care should be taken in the administration of an estate which may be insolvent, and seeking legal guidance where appropriate is advised. 'Executors are strongly advised to receive written confirmation that any debts are repaid or written off before any distributions can be made to beneficiaries.' If assets have been distributed without settling all the estate's debts, McLeod warns that the executor could be personally liable. Mistakes to avoid There are common mistakes that are important to avoid when it comes to managing posthumous debt. ' One of the most common mistakes is paying debts out of your own pocket straight away, thinking you have to – when in many cases, you don't,' says Woodhouse. 'Another is putting it off completely because it all feels too overwhelming. The best thing you can do is take it one step at a time, keep a record of who you've spoken to, and get the right support early on. You don't have to go through it alone.' If you're struggling with debt after the loss of a loved one, there are support systems available. ' Charities like Cruse or Marie Curie can provide emotional support when you're grieving,' says Woodhouse. 'It's also worth checking if you're eligible for the Bereavement Support Payment, especially if you were the partner of the person who died. It's a tax-free payment that could make a real difference. You can find more information on
Daily Mirror
4 days ago
- Lifestyle
- Daily Mirror
‘I was £70k in debt at 48, six years later I was able to retire'
When Toni's life hit rock bottom, a single change turned everything on its head and she was able to retire six years later Toni Graham, from Yorkshire, faced a daunting breakdown at the age of 48, which plunged her into £70,000 of debt, saw her weight reach 17 and a half stone. Fast-forward six years and Toni was able to retire, three and a half stone lighter as she embraced an "extreme frugalist" lifestyle. On the surface, when Toni was 48, many might have assumed she had it all together: a working single mother of two with a high-powered job, nice car, and nicer clothes. But the truth for Toni was far less idyllic. Her expenses were surpassing her income due to the pressure of maintaining the lifestyle she saw the people around her living, coupled with the financial burdens from a lengthy divorce, and the tremendous stress from her professional life was wearing her down. Speaking with Money Wellness, Toni recalled: "I was living paycheque to paycheque and I wasn't enjoying life at all, not at all." Her situation deteriorated when she had a breakdown, resulting in nine months away from work. When her colleagues came to visit: "People couldn't believe the state I was in. I looked like a really frail old woman. "I'd got to 17 and a half stone, I was walking with a stick, my legs were giving way. I was really, really ill. People were shocked when they saw me." Feeling at her lowest, Toni sought guidance and invested £140 in life coaching sessions that ultimately transformed her life. When asked about her aspirations for the next phase of her life, she jokingly responded "to retire", a statement her coach took quite seriously. Together, they transitioned Toni's unsustainable lifestyle into one of extreme frugality. She said: "I'm an extreme frugalist, so that means you don't just do little bits to save money, you just go full out." She successfully reduced her annual expenses to a mere £10,000, using the remainder of her income to clear her debts. And she "loved it". Among her top frugality strategies are avoiding shops as much as possible, growing her own food, and even adopting specific diets to further cut down her grocery bill. She and her housemate also sidestep the most expensive time of year by creating homemade hampers as Christmas presents. Toni said: "It's like probably 200 habits in a day of saving money, like washing your bags out that you've had in the freezer, just the tiny little things that you automatically do... saving your fat from your bacon that you've cooked or making your own lard, anything, you know, all these little things add up." Toni also seized every opportunity to boost her income; taking on overtime, lecturing at her local college on her days off, selling unused items. All this additional work "gave me a purpose". Six years later, Toni retired and had also shed three and a half stone. She continues to live a very frugal existence, which she finds healthier and more fulfilling than her previous lifestyle of splurging on clothes, cars, and luxuries with borrowed money. Now approaching 65, Toni lives on a pension under £600 a month, most of which goes straight into savings. But, like many, she's feeling the pinch of the cost of living crisis. To cut costs further, she's taken on new measures recently such as doing laundry less frequently, ditching her TV licence by stopping live broadcasts, and staying in bed longer during the colder months to save on heating bills. She added: "We're doing that intermittent fasting, so we don't have to eat breakfast. "We'll eat from half past 10 till half past five, and that's our window for eating, and that cuts out a the new thing we've done this year to save money." For those considering a more frugal way of life, Toni suggests small changes like switching from liquid soap to bar soap, which can significantly reduce expenses over time. She has also created a Facebook group for people with similar interests and shares tips on her own website. She concluded: "I feel richer now than I've ever felt in my life. I have more choice now, I have more freedom now than I've ever had in my life, and I don't feel like I'm missing out on anything. I'm really happy and I've had 10 happy years."
Daily Record
19-05-2025
- Business
- Daily Record
Millions default on energy bills as debt hits record high - here's how to get help
More than 2.7 per cent of gas and electricity Direct Debit payments failed in April. More British households than ever are defaulting on their energy bills, with new figures from the Office for National Statistics (ONS) showing just how tough things are right now. Last month (April), more than 2.7 per cent of gas and electricity direct debits failed because there wasn't enough money in people's accounts. That's the highest rate since records began in 2019 - and three times higher than before the energy crisis hit. At the same time, more people are missing loan repayments, often taken out to cover everyday costs. Nearly 3.9 per cent of Direct Debit loan payments failed last month, compared to just over 2 per cent during the pandemic. Even though the energy price cap has come down slightly this year, millions are still struggling with the impact of last winter's high bills. While the recent unseasonably warm weather means many households are using less energy right now, it hasn't eased the burden for those already in debt. For people who fell behind over the colder months, lower usage now doesn't undo the damage that's already been done. Matthew Sheeran, energy expert at Money Wellness, said: 'These figures are deeply worrying, but they're not surprising. More and more people are facing impossible decisions between heating their homes, feeding their families or keeping up with repayments. 'The good news is that help is available, from supplier grants to debt write-offs. The earlier people ask for support, the better their chances of turning things around.' Financial help to reduce energy debt Here are six practical tips Money Wellness recommends for getting support with your energy bills. Apply for energy grants and hardship funds Most suppliers offer grants to help people struggling with energy bills. These don't need to be paid back and can help clear arrears or reduce future bills. The British Gas Energy Trust, for example, is open to anyone, not just British Gas customers, and has written off thousands of pounds in energy debt. EDF, Octopus, and also run similar schemes. You'll usually need to complete a budget form and provide meter readings and income details. Contact your supplier directly to see what's available. Talk to your supplier as early as possible It might feel intimidating, but the best thing you can do if you're falling behind is speak to your energy company. They're legally required to help you if you're struggling. That could mean a more manageable payment plan, time to apply for grants, or switching to a better tariff. The earlier you get in touch, the more they can do. Look into energy efficiency upgrades Improving how your home uses energy can help reduce bills long-term. The government's Great British Insulation Scheme offers free or discounted insulation and other upgrades if your home has a low energy rating and is in council tax bands A to D. These changes, like better insulation or heating controls, could cut hundreds of pounds a year from your bill. You can check your eligibility online. Get free debt advice and explore ways to reduce what you owe If you've got more than just energy debt, speak to a free, regulated debt adviser who can help. Non-profit organisations such as the Citizens Advice network, Christians Against Poverty and the National Debt Helpline offer free, impartial and confidential advice. Use budgeting tools to stay in control When money's tight, having a clear view of where it's going can really help. Use a free budgeting tool to help you track spending and spot savings. It might also be useful to see if you're missing out on any benefit support or government grants using a free online checker. Many people discover support they didn't know they were entitled to. Small changes can quickly add up and really help. Check if you are eligible for the Warm Home Discount This winter scheme gives £150 off your electricity bill during the colder months. If you get the Guarantee Credit part of Pension Credit, it's applied automatically. Others on low incomes may also qualify, depending on their circumstances. In England and Wales, most people don't need to apply, but in Scotland, you might still need to contact your supplier. Full details can be found on here.
Metro
18-05-2025
- Business
- Metro
This £30 broadband rule proves whether you're paying over the odds
In the 21st century, lightning-fast WiFi is non-negotiable. Whether you're working from home and need quality broadband to avoid awkward Zoom cut-outs, or your Netflix marathons require pristine visuals, everyone has their reasons in this digitally switched-on world. But the main problem? People often pay too much money to ensure impeccable services. According to Which?, no one should be shelling out more than £30 per month for a good broadband connection – and if you are, 'your connection is probably costing more than it needs to.' Regardless of whether you're mid-contract or you're looking for a new provider, there are plenty of ways to stick to the consumer champion's £30 rule. Here's everything you need to know to get online for less. Last year, Martin Lewis provided monetary broadband guidelines on weekly Podcast. The Money Saving Expert founder echoed Which? advice, saying that even with the highest speeds available, £30 or more a month is too expensive – and it should be cheaper still for services with lower speeds. 'For a simple fibre cheap deal when you factor everything in, including phone line, I'd be looking for around £20 to £22 a month,' he explained, noting that most people are paying £40 to £45 a month for these services. For over 100MB, Martin stated he'd pay no more than a pound extra, making the final price £21 to £22 a month, while 500MB (which he labelled as the cheapest deals overall) should come in at under £30 a month. In terms of why people end up paying over the odds, it's often if they've had the same contract for years and it switches to 'rolling,' where the contract automatically starts again after the previous one ends. Matthew Sheeran, money saving expert at Money Wellness, tells Metro: 'A lot of people end up on expensive broadband deals because their contract has ended and they've been quietly rolled onto a pricier rate. 'Others might have signed up for bells and whistles they don't actually use, like super-fast speeds for a one-bed flat or bundled extras they didn't ask for. 'And with prices going up mid-contract, it's easy to lose track of what you're actually paying.' If you've ever read, watched or listened to any Martin Lewis content, you'll know he's always talking about comparison sites. When looking for cheaper deals, the likes of Compare the Market, Go Compare, and MoneySuperMarket all offer broadband package comparisons, showing you the best prices from multiple companies, along with factors like contract length, average speed, and set-up cost. Simply input your postcode or address, and the site will direct you to the best deals for your area. Alternatively, if you're happy with your speed and current provider but think the price is a little high, you can get in touch with them and try to negotiate a cheaper deal. This is often done when your contract is ending: if you've put in your research and found a better deal elsewhere, your current provider may offer to price match – or even lower the monthly costs – as an incentive to keep you as a customer. However, Matthew also reveals that if you're on a low income or certain benefits, you could pay even less thanks to social tariffs. 'Social tariffs are discounted broadband deals for people on benefits like Universal Credit, Pension Credit or ESA. They're not advertised widely, so it's easy to miss them. But they can save you a lot,' he explains. More Trending If this is you, check your current provider to see if they offer social tariffs. If they don't, shop around and switch to a provider that does. Sometimes, instant eligibility checks are offered during the application process to save you any faff later down the line. Typically, it only requires your National Insurance number. In some cases though, you might need to complete a credit check. To help you out even more, Matthew shared some deals under £30 available as of May 2025: View More » • Vodafone Essentials Broadband – £20 a month for people on benefits. • Sky Basics – also £20 a month if you're claiming Universal Credit. • TalkTalk Fibre 35 – from £23 a month, with no setup fee. • NOW Broadband – £23 a month, on a 12-month contract. • Community Fibre (if you're in London) – from just £21 a month, with no mid-contract price hikes. Do you have a story to share? Get in touch by emailing MetroLifestyleTeam@ MORE: The £1 pension trick that could save you losing thousands MORE: Thousands of households could get up to £500 in cost of living support – check if you qualify MORE: The 'unusual' way you can build your credit score as a renter — and make your money work harder
