What happens to credit card debt when you die is a question that may seem difficult to answer. The last thing you want to do is leave your heirs with unwanted liability from unpaid credit card debt. We will unpack the issues at hand and offer the knowledge you need to protect yourself and your family.
– Stop Using the Card – First, do not incur more debt, even with an authorized user. It is considered fraud if you are not the primary user. – Make a List of the Outstanding Credit Card Accounts – If you are the surviving spouse, gather all documents and make a list of the debts to pay off.
After your death, your assets are used to repay your credit card debt. Then, the remaining assets are distributed to your heirs. The executor of your estate takes care of all these things.
That means that your estate is insolvent. In this situation, your heirs may have to repay your credit card debt. However, it depends on several factors. If you have a joint account holder, they may have to bear the credit card debt burden and repay it.