Here is the first thing to know – your creditors can’t pursue credit card debt payments after your death. However, never think that death is the ultimate solution to credit card debt relief.There are lots of other ways to get rid of credit card debt.
A 2016 Experian survey states that about 73% of people die with some combination of credit card debt, mortgage, personal loan, student loan, etc. About 68% of people die with credit card debt of more than $4500, on average.
1, Stop Using the Card2. Make a List of the Outstanding Credit Card Accounts3. Notify the Creditors and the Credit Bureaus4. Clear the Outstanding Credit Card Debt
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.
3. What If You Owe More Than the Sum of Your Assets?
That means that your estate is insolvent. In this situation, your heirs may have to repay your credit card debt. However, it depends on several factors. 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
4. Assets You Cannot Use to Repay Creditors– Life Insurance Proceeds– Brokerage Accounts– Retirement Accounts– Assets in a Living TrustWhat Happens to Credit Card Debt When You Die With No Assets?When the person has no support, or more specifically, no sufficient assets to cover the credit card debt, the heirs may have to repay the outstanding debt.
When the person has no support, or more specifically, no sufficient assets to cover the credit card debt, the heirs may have to repay the outstanding debt.
If you live in a community property state or your husband opens a credit card account after your marriage, it is automatically a joint account. Therefore, you will be responsible for paying off the debt amount.
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