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There is no secret Arizona is a red state, a conservative state, because of hidden gems like Ric Edelman (that’s http://www.edelmanfinancial.com). He broadcasts Sunday mornings on KFYI 550AM radio. This is not just for old people to listen to. It is sage, savvy financial advice for anyone who aspires to become wealthy.

Today, I learned that when one who has debt passes on, you do not have to pay it off. 1) there is “secured” debt, like a house, which is fixed and low in interest rate. Then 2) there is “unsecured” debt, like a credit card, which has a variable interest rate oftentimes jumping up to 18%. They do this because the credit card company takes a risk on you paying back the debt while you are alive, whereas with a house, it can easily be repossessed by the bank. The house is fixed and not going anywhere, which facilitates a low interest rate. If someone dies, their credit card cannot be paid off, unless someone else’s name is on it – for which they would then be responsible for the remaining debt.
Oftentimes, credit card companies will try to get someone else to pay the remaining balance of a maxed out credit card of a dead person. Do not fall for it. This is why interest rates are so high, because the credit card company makes the profit while you are alive, and then socially pressures you into paying off the balance if you do not know any better. It is an “unsecured” loan, which you really should learn about. The credit card company eats the remaining balance. Do not fall for paying it!

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