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.
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.’
What To Do After a Cardholder’s DeathStop 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.
Clear the Outstanding Credit Card Debt – Remember, one late payment will negatively reflect your credit report even if you do not want to use the card.
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.
If you have a joint account holder, they may have to bear the credit card debt burden and repay it. When you apply jointly for a credit card, both of you agree to indemnify the outstanding credit card balance.