Most of Us Die as Debtors

A shocking 73% of Americans die owing an average debt of $62,000. The big problem is credit cards.

Rice professor and financial planner Michael Parmet says Americans are the world's biggest debtors.

"Credit card debt has taken over the world and people are not that responsible with credit debt and if they die with it, that's why we have to pay such high rates for credit card interest."

But the good news is, we don't have to pay off the sins of the fathers.

"The beneficiaries, the children, and the executor of the estate -- they are not liable for the debt of the person who has died."

However, if there's mortgage debt, the house will be sold to pay it off. So, Parmet says make it a priority to retire debt free.

"The best strat is to debt free when you die -- or to be debt free the last 10 or 15 years before you die; by being debt free it sets you free and you can live the rest of your life and be carefree not having to worry about how to pay bills tomorrow."

Parmet says in the past home mortgages were the big problem but these days he says credit cards are our downfall today.

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