What Happens to Your Credit Card Debt When You Die

December 28, 2009 by  Filed under: Credit 

Many people have the wrong assumption that once a person dies, it is a “full stop” to his or her credit card debt. In actual fact, it is not that simple. His or her family may have a hard time dealing with the debts after he or she passes away.

Who will actually be responsible for the debt when you die?

The answer depends on several factors. Is the deceased person the sole signer on the account? If it is a sole account under the deceased person’s name only, it is confirmed that the debt is not passed on to his or her heirs or the family members. The creditors will have to absorb the debts.

However, if it is a joint account, the other card holder will be liable for the debt. Let’s say the account is jointly owned by husband and wife. If the husband deceases, the wife is responsible to pay off all the outstanding balances. Even though the wife may not have the financial ability to do so, she is still liable for the debt. She will be sued for bankruptcy if she fails to pay.

It is always the best not to leave any debt issue to your loved ones. Always ensure that you don’t have outstanding balance which may make your family members suffer. If you are having credit card debt currently, you are advised to get rid of it through debt negotiation. You can contact your creditors to request for interest reduction. By lowering the interest rates and waiving the annual fees, your financial burden can actually be reduced.

Everybody just hate getting landed with huge credit card debts in such an early age. If you feel that the credit card debt is so overwhelming and it affects your work performance, visit CreditCardDebtSolver.com for more constructive tips about eliminating your credit card debt.

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