what happens to credit card debt when you die?

Your creditors can’t pursue credit card debt payments after your death. However, never think that death is the ultimate solution to credit card debt relief.

Today, we will unpack the issues at hand and offer the knowledge you need to protect yourself and your family.

If your name is on the card, make a timely payment if possible. If you can’t clear the entire amount, pay as much as you can.

After your death, your assets are used to repay your credit card debt. Then, the remaining assets are distributed to your heirs.

How the Creditors Are Paid Back

That means that your estate is insolvent. In this situation, your heirs may have to repay your credit card debt.

What If You Owe More Than the Sum of Your Assets?

Here are a few assets which the executor can’t use to repay the debt: – Life Insurance Proceeds – Brokerage Accounts – Retirement Accounts – Assets in a Living Trust