What Happens to Credit Card Debt When You Die: Get the Knowledge to Protect Your Assets

If you are wondering what happens to your credit card debt after your death or whether your survivors will be liable for it, in most cases, the answer is ‘no.’ Usually, your assets are used to pay any debt you owe.

1. What To Do After a Cardholder’s Death

-Stop Using the Card -Make a List of the Outstanding Credit Card Accounts

2. How the Creditors Are Paid Back

After your death, your assets are used to repay your credit card debt.

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

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

4. Assets You Cannot Use to Repay Creditors 

– Life Insurance Proceeds – Brokerage Accounts – Retirement Accounts – Assets in a Living Trust