What is a liability?
A liability is also known as a debt. It is something that someone owes to someone else and is usually in the form of money.
What types of liabilities are there?
The main types of liability include:
- Secured and unsecured personal loans
- Credit cards
- Tax debts
- Student loans
- Same day pay day loans
- Mates’ rates loans
Why do my loved ones need to know about my liabilities?
For both you and your loved ones, knowing the value of your liabilities is important as it is a debt that at some stage is expected to be repaid in full.
If you look at your liabilities today, you might then decide to look at how you are going paying them off. You may realise that things are going well, and you can increase your repayments thus reducing the time it takes you to pay them back and the interest and fees you are paying over that time. If you are not going so well in paying them back and your debts are mounting, this exercise may enable you to build confidence to seek support. There is always support out there, you will just need to ask.
If you become unwell and cannot pay your debts, then your loved ones will most likely know that you are struggling. If you pass away and have outstanding debt, your loved ones will be expected to clear these debts using the processed of your estate. If the amounts are significant, this may deplete the funds left. If your loved ones know now, then they will not be receiving nasty surprises later down the track.
I am embarrassed for my loved ones to know about my debts, what can I do?
Everyone has at some point owed something to somebody, try not to be embarrassed as it is part of life (look at the level of debt some governments have!) Having a debt is perfectly ok. It means that at the time you took on the debt, there was a reason behind it and that reason is personal and is yours.
The important thing is that you are doing what you can to repay your debt and if you are struggling, seek support.
How can a TellThem4Me® Membership help?
You can use My estate to record details of your liabilities, whom they are owed to and the value. You can also decide which of your Nominees are able to access this information. This does not have to be a loved one in the first instance and you can change read only access to this information at any time. Having a membership, means that al of your information will be recorded in one place and shared for a time when you cant
This is general information only and does not constitute specific legal advice.