Required

What Happens To Credit Card Debt After You Die?

Written by:
Adam Beckles
Edited by:
Kristin Marino verified

woman cutting up credit card Dealing with death is difficult enough; still, being organized is imperative when handling a loved one’s finances after they have passed away. Many people believe that debt is inherited by the family when someone dies but that is not necessarily the case.

We’ve discussed how important it is for seniors to be protected from financial abuse, and how crucial it is for a person to have their finances in order. Once that is taken care, be sure you’re up to speed on what happens to any credit card debt when an untimely event occurs. Following are two credit-related things to keep in mind during that difficult time.

Joint Credit Cards

If you’re only an authorized user on a card you’re in the clear, but if you co-signed for a credit card you might have to pay off the credit card debt. Joint card holders may be a parent and child or a married couple. In some cases you may have co-signed for a card and either forgotten that you did so, or someone signed for you. Be sure check your credit report yearly for any possible new accounts and review accounts that are open.

Divorcees need to keep in mind additional credit card debt responsibilities if they reside in a community property state such as Arizona, Texas, or Washington. In these states any property acquired during the marriage is owned jointly and will be divided upon a divorce, annulment, or death. Depending on your state community debt laws vary so you will need to speak with a lawyer to find out what laws might apply in your case.

Beneficiaries & Authorized Users

If you are an authorized user on a credit card, do not continue to use the card after the account holder has passed away. A case could be made against you for fraud.

Additionally, beneficiaries should expect less as debts will be paid first before a beneficiary receives any money from an estate.

The Takeaway

For credit cards, be sure you are up to date on your state’s laws about credit card debt and death, have all the information you need, and contact the credit card companies to let them know the account holder has passed away. You’ll also want to watch for any suspicious activity as you do not want the deceased’s identity stolen. Setting up a credit monitoring service early on might be an option as well to help you watch for fraud, stolen identities, and other suspicious activity. AmONE can help you find credit monitoring services for free; contact us to learn more.

Get matched to your perfect loan and level up your money game.
Find My Loan
Popular Posts

Related Content

What to Do About Debt Collectors and Collection Calls
Debt | May 4, 2022
There are rules in place about debt collectors and how they can contact you. Learn how to deal with calls and pay off or consolidate your debt.
The 20/10 Rule & How It Helps With Debt Management
Debt | March 31, 2022
The 20/10 rule says, 20% of your annual net income should be spent on consumer debt and no more than 10% of your monthly net income should be used to pay debt.
Should I Get a Balance Transfer Card?
Debt | May 31, 2022
A balance transfer credit card can help you pay off your debt faster if you use it right. Learn how to get the most from a balance transfer.
Getting Out of Debt: Secured vs. Unsecured Debt Consolidation Loans
Debt | June 13, 2012
The main difference between secured vs unsecured debt is Secured loans require collateral, unsecured loans do not. Both can help you manage and get out of debt.
The Best Debt Consolidation Personal Loans for 2025
Debt Consolidation | March 31, 2022
Debt consolidation loan helps lower your interest rate and monthly debt payment? Learn how a personal loan can help you take charge of your debt and pay it off.
Minimum Credit Card Payments: What You Need to Know and How to Get Ahead
Debt | December 18, 2024
Learn how minimum credit card payments work, their long-term impact, and strategies to pay off debt faster. See how debt consolidation can save you money.

Ready to up your money game?

See my loan options
Why AmONE is Trusted By Millions for Their Loan Needs

Anyone can put together a group of lenders in a marketplace to offer people loans. We go beyond that. We not only partner with some of the best lenders around (like Citi, Rocket Loans, SoFi and so many more), we also work with partners who can help people like you go beyond a one-time loan. We connect you with the money programs you need to help you get real financial solutions in place that allow you to tackle your debt and money problems so you can move forward. Getting out from under debt to financial freedom is daunting and we're ready to help you every step of the way.

AI is the hottest thing around right now, but we know from our decades of experience in the personal finance space that the last thing someone wants to do is talk to a robot when they need real answers. Solving money problems can be stressful and daunting, so don't settle for generic responses and information that offers little real financial insights. Speak to one of our many support specialists who all work from an AmONE office right here in the U.S. and get the answers you really need to make better financial decisions.

We work hard to find loan offers for even the most challenging financial situations. With our large lender marketplace, we know we give everyone the best shot at getting the loan, debt and credit help they're hoping to find. Even when someone's credit is clearly poor or they hold a large amount of debt, we still get our customers in front of lenders to give them the best shot at securing the funds they need. When the unexpected happens and customers are rejected for loans, we still work with them to find other financial solutions that put them on the path to financial recovery so they can keep moving forward toward their money goals.

Anyone can put together a group of lenders in a marketplace to offer people loans. We go beyond that. We not only partner with some of the best lenders around (like Citi, Rocket Loans, SoFi and so many more), we also work with partners who can help people like you go beyond a one-time loan. We connect you with the money programs you need to help you get real financial solutions in place that allow you to tackle your debt and money problems so you can move forward. Getting out from under debt to financial freedom is daunting and we're ready to help you every step of the way.

handicon
Matched with Lenders Who Fit Your Needs

Tell us your situation and we will match you instantly to financial solutions that are right for you.

shieldicon
Get Offers from Only Highly Rated Providers

We work with only the highest-rated partners that provide the best chance to get you the loan you need for your situation.

supporticon
Easy Access to Live Support Based in the U.S.

Get live support when you need it most, through email or phone, and have your questions answered fast.