Can you inherit credit card debt? Experts weigh in

CBS News

23-06-2025

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There are some instances to be aware of in which you could inherit credit card debt.
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Credit card debt continues to strain household budgets, with the average credit card balance ticking up to $6,618 in the first quarter of 2025, according to Experian. At the same time, the Federal Reserve reports average interest rates on credit cards remain elevated at 21.37% with many card issuers charging rates around 30% or higher. With a high balance and interest rate, even the minimum payment can be hard to make, let alone paying your other bills. Perhaps that's why over 40% of American households are relying on their credit cards just to cover everyday expenses, a recent Civic Science study shows.
If you're dealing with a similar debt burden, you may wonder what happens to it after you die or in the event of the death of a spouse or loved one. Specifically, can you inherit someone else's credit card debt? We put these questions to the experts. Below, we'll break down what they had to say.
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Can you inherit credit card debt when someone dies?
"Typically, you won't inherit debt from a loved one unless you're a co-signer on the debt or it's a joint debt, like a joint credit card," says Leslie Tayne, a finance and debt expert and founder of Tayne Law Group in New York City. "Debt is usually paid out by the estate if possible, but if not, then it may not be repaid."
According to a recent Debt.com survey, 55% of Americans expect to leave behind debt when they die, and in most of those cases, they believe it'll be at least $5,000. The deceased person's estate typically settles these debts. If the estate lacks the funds to pay them off, the remaining balance may go unpaid without passing the burden to surviving family members.
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What usually happens to credit card debt after death
When someone dies, you don't automatically inherit their debt. But you may not be off the hook either. So, when are you responsible for a spouse or loved one's debt, and when are you not?
"The decedent's estate is responsible for paying any credit card debt, typically before any remaining estate assets are passed on to heirs," says Kyle DePaolo, co-founder and principal at DePaolo & May Strategic Wealth in Irvine, California. "If the estate is insolvent (debts exceed assets), the credit card company may write the debt off. Family isn't liable unless legally connected to the debt." That said, there are generally two important exceptions:
Joint account holders or co-signers may be fully liable.
Spouses in community property states (and domestic partners in some cases) could be responsible if the debt was taken out during the marriage.
If you don't fall into one of those categories, you likely aren't responsible for the debt. If you're unsure, speak with an estate attorney to clarify your legal responsibility.
Common myths about inheriting credit card debt
There are many misconceptions about credit card debt and who's liable for it when someone dies. Misleading information online and from debt collectors only adds to the confusion.
"If my parent dies with debt, I'm on the hook," is one of the most common assumptions people make, says DePaolo. "False—unless you co-signed or were a joint account holder."
"Another myth I hear is that a creditor can go after retirement savings," says Chris Diodato, founder of WELLth Financial Planning in Palm Beach Gardens, Florida. "Even during life, most IRAs, 401(k)s and 403(b)s are afforded some protection from creditors. I've never seen a case in my career when an IRA or 401(k) account needed to be invaded to pay creditors." While state laws vary, retirement accounts are generally safe from creditors.
What if a spouse dies with credit card debt?
The first step you should take after the death of someone with credit card debt is to notify the credit card companies and provide them with a copy of the death certificate. Typically, the card issuer will close the account and pause collection efforts once they're notified of the death.
While you're at it, contact the credit bureaus to freeze their credit and update the credit report to show the person has died. This helps prevent identity theft or fraudulent activity under their name.
If debt collectors call, don't assume you're personally liable. "Talk to an estate attorney before responding to any debt collectors," says DePaolo. "Don't rush into settling anything personally."
It's a good idea to head off potential issues by preparing in advance. "Pay close attention to any debt that you co-sign on or are a joint owner on," says Tayne. She also notes that "spouses in community property states, like California, should have a good understanding of what kind of debt their partner has incurred during their marriage to avoid any unpleasant surprises in the event that someone passes away."
The bottom line
It's hard to make financial decisions while you're grieving, but getting legal counsel can help you avoid future financial headaches. You may even be entitled to benefits you may not know about. For example, you might want to check whether the deceased had any unused credit card rewards. Some issuers allow trustees or spouses to claim them within a limited time.
If you're not sure who's legally responsible for a debt, or whether it should be paid from the estate, consult an estate or probate attorney for professional assistance. And if debt collectors are harassing you, remember that the Fair Debt Collection Practices Act protects you from threats, false claims and repeated calls.