In today’s digital world, credit cards are widely used to solve immediate financial issues, but they can create long-term problems if not managed carefully. Many people use credit cards as a quick fix, leaving the burden of repayment for the future.
Unfortunately, this often leads to bigger problems down the line. With rising credit card debt and interest rates, it’s crucial to understand how credit card debt works, especially in the event of a loved one’s passing.
Americans’ Growing Credit Card Debt
According to Experian, Americans’ average credit card debt reached $6,618 in the first quarter of 2025, with interest rates averaging a high 21.37%. This means many people are struggling with not just the debt, but also with the high interest that compounds over time, making it harder to get out of debt.
In a recent survey by Debt.com, 55% of Americans expect to leave debt behind when they die, with most estimating it will be at least $5,000. When someone dies, their estate, which includes their assets and property, is typically responsible for settling outstanding debts, including credit card balances.
However, if the estate lacks enough funds to pay off the debt, it may go unpaid, and the burden does not typically fall on surviving family members.
Can You Inherit Credit Card Debt?
A common question people have is whether they can inherit credit card debt after the death of a loved one. According to Leslie Tayne, a debt expert and founder of Tayne Law Group, you typically will not inherit credit card debt unless you are a co-signer on the debt or a joint account holder.
This means that if you didn’t directly share responsibility for the debt, you won’t be responsible for paying it after the person passes away.
When a person dies, the estate is responsible for paying any remaining debts, including credit card balances. The estate’s assets (such as property, savings, and investments) are used to pay off these debts before any remaining assets are passed on to the heirs.
However, if the estate is insolvent, meaning the debts exceed the value of the assets, the credit card company may simply choose to write off the remaining debt. In these cases, the surviving family members are not held responsible for the debt.
Exceptional Cases When Debt Might Be Inherited
While it is rare for a family member to inherit credit card debt, there are two exceptional cases where this could happen:
- Joint Account Holders: If you are a joint account holder on a credit card with the deceased, you are legally responsible for the entire outstanding balance. In this case, the surviving account holder would need to pay off the remaining debt.
- Spouses in Community Property States: In certain states, known as community property states, if the debt was incurred during the marriage, the surviving spouse may be responsible for the debt, even if they were not a co-signer. This rule applies regardless of whether the spouse was directly involved with the credit card or not.
In most cases, credit card debt does not get passed on to surviving family members. The deceased’s estate is responsible for settling any debts, and if there are not enough assets to cover the debt, it may be written off.
However, there are exceptions, such as joint accounts or community property states, where the surviving family member could be held responsible for the debt. It’s important to understand your responsibilities and be aware of how credit card debt works to avoid unexpected financial burdens.
