What Happens to Credit Card Debt When You Die?

If you have credit card debt, you may have wondered, what happens to credit card debt when you die? When you die, your credit card debt does not die with you.

Any remaining debt you have must be paid before assets are distributed to your heirs or surviving spouse.

Who Is Responsible for Credit Card Debt When You Die

Typically, relatives aren’t responsible for paying a family member’s credit card debts upon death. However, you may be responsible for paying your deceased loved one’s credit card debt if you cosigned for a credit card,

Assets That Are Protected From Creditors

If a deceased relative’s credit card debt exceeds their total assets, don’t panic. In the instance the estate doesn’t have enough money to cover all of the deceased’s debt, state law will determine which debt is the highest priority.

Credit Card Liability After Death

The best way to keep your loved ones from having to deal with your credit card debt is to responsibly manage your credit card balances while you’re alive. For instance, you can avoid spending up to your credit card limit each month to make your balance easier to pay off.

How to Avoid Passing Down Debt Problems

A will or trust will offer your loved ones guidance on where you’d like your assets to go after your death, and, in some cases, could allow them to bypass the sometimes costly and time-consuming process of probate.

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