Losing someone is never easy, and dealing with financial matters on top of grief can feel overwhelming. If you’re handling the affairs of someone who has passed away, understanding what happens to their credit card debt can help make things a little clearer.
We explain how credit card debt is dealt with after someone dies, so you can feel more informed and confident during a difficult time.
When someone who has a credit card dies, the debt doesn’t just disappear. But usually, family and friends won’t have to pay it from their own money.
Instead, any outstanding credit card debt is paid from the person’s estate — that means the money and belongings they left behind.
If there’s enough money in the estate of the person who died, the credit card company will be paid from it. This might come from savings, property, or other assets they owned.
After debts, including credit cards, are paid, anything left over goes to the people named in the will or to the rightful heirs.
Sometimes, the estate doesn’t have enough money to pay off all debts. This is called being insolvent.
If this happens, the credit card company and other creditors may only get some of the money owed — or sometimes nothing at all.
Family and friends won’t have to pay the leftover credit card debt unless they were joint account holders or signed a guarantee.
Most consumer credit cards don't actually have joint account holders - instead, they have a primary account holder and authorised users. If the deceased person was the primary account holder and someone else was an authorised user, the authorised user is generally not responsible for paying the remaining debt.
If someone was just an authorised user (someone allowed to use the card but not responsible for payments), they are not responsible for the debt after the cardholder’s death.
Credit card debt is paid from the estate before anyone inherits money or possessions. If the debts are high, it could reduce what family members receive.
Credit card debt doesn’t disappear when someone dies, but it usually doesn’t pass on to family or friends unless they shared responsibility on the account. Understanding how debt is handled can give you peace of mind and help you plan ahead.
If you have questions about credit card debt and inheritance, it’s a good idea to speak to a financial adviser or solicitor who can give advice based on your situation. Alternatively, you can contact Citizens Advice for free, impartial guidance.
Disclaimer: We make every effort to ensure content is correct when published. Information on this website doesn't constitute financial advice, and we aren't responsible for the content of any external sites.
Fiona is a personal finance writer with over 7 years’ experience writing for a broad range of industries before joining Ocean in 2021. She uses her wealth of experience to turn the overwhelming aspects of finance into articles that are easy to understand.
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