Your Death and Credit Card Debt

Debt is a problem when you are alive and it is still a problem when you die. A number of factors such as where you live and who applied for card can affect whether or not the debt follows you to the grave or if one of the living will have to pay for it. The sentence “Till death do us part” might not apply here, so if you do not want to put your family through a hard time after you die, then you should always be on top of your credit card payments. As if losing you was not painful enough, now they would have to deal with the harassment from collection agencies too.

When you owe money to a business, they will do anything to get it back, so here is where you must be careful. Rather than absorbing the debt and writing it off as a loss, credit card companies will go after who ever are listed on the card. If you had opened a joint account with your spouse, then upon your death they will be responsible in paying back the debt. If you and your company jointly owned the account, then your company will have to make payments upon your death. So as long as the account was co-signed (is a joint account) with a (still) living person, then they will have to pay on your behalf.

Normally, upon your death, the executor of your will be responsible in making sure that your assets are first used to pay off any debts that you might have before the assets gets divided among your loved ones as per your requirements. If you do not have a will then the state law will divide your assets however they see fit.

You should know that each state has different laws when it comes to debt collection after death, so approaching a lawyer and enquiring these matters would definitely help.

Using credit card can lead to serious debt if you are not able to control your spending habits. If you are looking for some constructive debt settlement solutions, visit

Article Source:

This entry was posted in Uncategorized by admin. Bookmark the permalink.