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.
–Stop Using the Card –Make a List of the Outstanding Credit Card Accounts –Notify the Creditors and the Credit Bureaus –Clear the Outstanding Credit Card Debt
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.
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.
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
4. Assets You Cannot Use to Repay Creditors
One of the suitable options to get credit card debt relief is to opt for settlement when your debt amount is high.