The death of a spouse is never easy on the family, both emotionally and financially. Often, the financial impact of a death is exacerbated by the fact that the remaining spouse was not the bookkeeper in the family and is unaware of the extent of the debt that exists.
Georgina Ross, FNB One Account Product Manager, says a death in the family can result in life spinning into financial disarray. This is especially true if one considers that an estate can take an incredibly long time to wind up while insurance policies also take months to pay out. In the interim, the remaining partner has to make ends meet without a second pay cheque.
Where there is a property to be considered, the One Account will enable a widow, for instance, to consolidate all the family`s debt into one manageable account. "Not only will her single monthly account statement enable her to tell, at first glance, how much she is indebted for, but she will also be privy to a lower interest rate," says Ross.
She adds that the interest rate on the One Account is much lower than interest charged on credit cards, for example, because it is more closely aligned to the home loan interest rate. "The savings to be made on paying a lower interest rate are not to be discounted. For a struggling widow, this can mean a considerable saving over time."
With all her accounts consolidated into one account, a widow can then choose to pay off her smaller debt or accelerate payment on other expenses. This can all be done without even leaving the home. As the account can be managed online, a widow need not worry about juggling family life with banking hours.
A debt calculator and a debt management tool are also available online and can be used to calculate and manage debt effortlessly. "The tools are easy to use and were designed to enable even the least financially adept of us to use them with ease," she says.
"The One Account is a breakthrough in the banking world. It was designed to help property owners maximise on their investments and should therefore not be overlooked as a financial aid in tough times," concludes Ross.
FNB is a division of FirstRand Bank Limited and an authorised financial services provider.
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