Loans For Funerals Hitting Families Hard.
The Birmingham Mail reports that funeral costs are regularly reaching £6,000 in 2015, forcing many families to turn to payday lenders. They can charge rates of interest that would embarrass even back street loan sharks. Apparently the Financial Conduct Authority see rates pushing the potential cost up to the equivalent of more than £90,000 are perfectly acceptable. It is a strange world where the Regulators are far more concerned about protecting the wealthy than the hard up.
Not having got round to planning for the costs for perfectly sound financial reasons, bereaved families are turning to crowdfunding and pay day loans says the Mail.
Had those families been able to think about avoiding funeral loans in advance, we could have suggested a family funded funeral plan. The whole family can give to the creation of (to start with) a single funeral plan, to be used for the first of the family to die. It isn’t a perfect solution, but most families could stretch to such a plan. Once the first plan is up and running, maybe a second plan could be started. Each plan at least restricts the financial impact of an unexpected death, and helps to avoid the rapid increase in funeral costs.
Funeral Loans Tip Families into Crisis.
A death in the family is pretty distressing, probably worse if it is unexpected. One in 4 deaths are unexpected. But if it tips the family into financial crisis with the immediate need to cough up thousands of pounds within days, then that makes things far, far worse.
Many people try to use life insurance to finance funerals. In the past, that was often a good move. But those same well intentioned Regulators have messed up this market too. They have ensured that thousands of hard working folk lose the total value of their policy if they miss a couple of payments. Sadly, Ivory Towers don’t breed common sense.
Advance Planning Can Avoid Funeral Loans:
Check out our Family Funeral Plan which can at least start to get things on track. Just use the form below. It will need a deposit, and a regular payment, but the sooner you get started the lower the cost will be. But two, three or more family members can chip in what they can afford, as deposit or regular contribution.