Can Credit Card Debt Be Inherited? Here’s What You Need to Know
Over time, unpaid balances may grow, creating difficulties down the road. This raises an important question: what happens to credit card debt when someone passes away?
The Current Debt Landscape
According to data from Experian, the average credit card balance for Americans in early 2025 was $6,618, with interest rates soaring to 21.37%. This highlights how tough it can be to keep credit card debt under control.
A survey from Debt.com revealed that 55% of Americans believe they’ll leave behind debt when they pass away. Most expect this amount to be at least $5,000.
However, in cases like this, the responsibility for settling those debts often falls to the deceased’s estate (their assets and property), not their loved ones.
Who Pays the Debt After Death?
Typically, when someone passes away, their estate is used to pay off any outstanding debts before the remaining assets are distributed to heirs. If the estate doesn’t have enough money or assets to cover these debts, the remaining balance is often written off by the creditors.
Surviving family members are generally not responsible for paying these debts, as explained by Leslie Tayne, a finance and debt expert and founder of Tayne Law Group. She says:
"Typically, you will not inherit debt from a loved one unless you are a co-signer on the debt or it is joint debt, such as a joint credit card."
Exceptional Cases: When You Could Be Responsible
There are a few situations where someone may have to take responsibility for a loved one’s debts, such as:
If you were a joint holder of a credit card with the deceased or co-signed their credit agreement, you’re usually legally responsible for paying off the remaining balance.
2. Spouses in Community Property States
In certain states in the U.S., known as “community property states,” a surviving spouse may be responsible for debts acquired during the marriage—even if they weren’t a co-signer.
What If There Aren’t Enough Assets in the Estate?
In cases where the estate does not have enough money or assets to pay off debts (this is called being “insolvent”), creditors might just write off the debt. As Kyle DePaolo, co-founder of DePaolo & May Strategic Wealth, explains:
"If the estate is insolvent (i.e., debts exceed assets), the credit card company may simply write off the debt."
Final Thoughts
The good news is that most people don’t need to worry about inheriting credit card debt from a loved one. However, it’s important to be aware of specific circumstances, like being a joint account holder or living in a community property state, where you could be held responsible.
To avoid confusion and stress, it’s a good idea to talk to a financial expert or estate planner about how to manage debt effectively during your lifetime and ensure there’s clarity for your loved ones after you’re gone.
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