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Can Credit Card Debt Be Inherited?

Credit cards, if used properly, are very useful financial tools. However, it is no secret that credit cards tend to be overused and even abused, resulting in serious debt. While this is not the case for everyone, credit card debt is a serious issue worldwide.

Now what if you do not have credit card debt, but your spouse or parents do? Will you be held liable in case they pass away? Will you have to deal with the credit card debt?

There is no one answer to this questions as laws vary depending on your location. However, the rule of thumb is that credit card debt is usually not passed on to the living relatives of someone who has passed away. At the very worst, the law may require that the estate of the deceased pay off the credit card debt. Still, this is not common.

If this is a major concern for you, it might reassure you that unless you are a co-signatory on the credit card, it is highly unlikely that the credit card company or the bank will go after you in the event that the main credit card holder dies. This is especially true if the credit card debt is of a relatively small amount. In most cases, the credit card company will not bother to deal with the debt and a death certificate will satisfy them. More so, credit card companies usually have insurance that will help them recoup their loss. Collecting the insurance will be less of a hassle for them than going after the survivors of the deceased.

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