Dying With Credit Card Debt – What Really Happens

One of the biggest risks of living your life in credit card debt is getting used to it.  Allowing credit card debt repayment to become a normal part of your life is not a great idea.  There can be serious repercussions.  In life, carrying card debt seriously erodes your ability to save or sometimes even your ability to survive.  And if you think card debt is normal in life then you probably think it is okay to die with it as well.

Contrary to popular belief, if you die with card debt, it does not automatically die with you.  Credit card reward points might die with you depending on the provider’s terms and conditions, but the debt itself hangs around and, one way or another will adversely affect your family.

If you die as a joint owner of a credit card then the other joint owner, commonly your spouse, will be responsible for all of the debt whether they created it or not.

If you are the sole owner of the card, the debt still lives on to be repaid from your estate if there is enough money and saleable assets to cover it.  If the estate is insolvent, the card provider may consider writing off the outstanding debt; or they may not.  Depending on the circumstances, they may try to aim up at your surviving spouse if he or she holds other accounts with them.

But whatever the outcome, dying with card debt will have a negative impact on your family.  If a family member isn’t responsible directly, then it is likely to eat into your estate and subsequently decrease their inheritance.