Who Is Responsible for Credit Card Debt After You Die?
Who Is Responsible for Credit Card Debt After You Die?
Joel O'Leary, The Motley FoolWed, February 25, 2026 at 1:50 PM UTC
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The average American is carrying $6,523 in credit card debt right now, and total U.S. credit card debt hit $1.277 trillion by the end of 2025 -- the highest level ever recorded.
That's a lot of debt floating around out there. So what actually happens to it when someone dies?
Here's the short answer: Unless they co-own the account, it almost certainly won't become your family's personal problem. The truth is a lot less scary than most people assume.
What happens to your credit card debt when you die
When you die, everything you own -- and everything you owe -- becomes part of your "estate." That's just a legal word for the total picture of your finances at death.
Your estate is responsible for your debts. That means your outstanding credit card balances are paid from assets like your home, bank accounts, investments, and personal property. The legal process of sorting all this out is called probate.
Here's the part that matters most for your family: the estate pays off debts before anything goes to your beneficiaries. If the estate doesn't have enough assets to cover the debt, beneficiaries are generally not responsible.
So if you pass away with $5,000 in credit card debt and a $50,000 estate, the debt gets paid first and your heirs get the rest.
If you have $5,000 in debt and $3,000 in assets, the creditor typically eats the difference. Your kids don't write a check.
Who might actually owe the debt
There are a few situations where someone close to you could end up on the hook. Here's a quick breakdown:
Joint account holders: If someone co-owns the credit card account with you, they're fully responsible for the remaining balance. This is not the same as an authorized user -- a joint account holder signed the original agreement.
Authorized users: Authorized users are generally not responsible for the primary cardholder's debt. However, they should stop using the card immediately after the primary cardholder dies -- continuing to use it could create personal liability.
Co-signers: A co-signer on any debt is on the hook just like a joint account holder. Death doesn't dissolve that agreement.
Spouses in community property states: If you live in a community property state (AZ, CA, ID, LA, NV, NM, TX, WA, or WI) your surviving spouse may be responsible for credit card debt incurred during the marriage. In all other states, a spouse is not automatically responsible for your individual credit card debt.
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What about heirs and family members?
You're not typically responsible for repaying the debt of someone who's died unless you're a co-signer, a joint account holder, or a surviving spouse in a state that requires it.
That said, your heirs will feel it indirectly. If your estate has to pay off $20,000 in credit card debt before distributing anything, that's $20,000 less they inherit. It's not a personal debt -- but it reduces what's left.
Debt collectors may contact family members to discuss estate debts, but it's illegal for them to imply that a family member is personally responsible. The Fair Debt Collection Practices Act prohibits debt collectors from harassing or abusing anyone they contact. If a collector calls your spouse or kids and implies they personally owe your debt, that's a violation of federal law.
What you can do right now to protect your people
The best time to think about this stuff is before it matters. A few practical moves:
First, make a simple list of all your assets and liabilities, including credit card accounts. And note whether anyone is a joint account holder or just an authorized user. That distinction matters the most.
Second, make sure your account beneficiaries are up to date. Naming your heirs as beneficiaries on your bank and investment accounts can help these assets pass directly to them and avoid probate.
Assets held in a living trust generally don't go through probate either, which means creditors have less access to them. An estate planning attorney can walk you through your options based on your state.
Third, think about life insurance. A simple term life policy can give your family a financial cushion to cover any remaining debts without dipping into inherited assets.
And if you're worried about carrying too much credit card debt into the future -- that's worth addressing now, while you have time. Check out our picks for the best balance transfer credit cards to pay down debt faster and start chipping away at it.
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