what happens to cc debt when you die

lizzydrippin

Can someone tell me what happens to creditcard debt when you die does you next of kin have to pay or is it written off

dzug1

Neither - you or rather your estate has to pay it from any assets you have at the time of death.

If you have no or insufficient assets it is written off in whole or in part.

Your next of kin may be responsible for arranging this - but are not personally liable to pay any debts.

maginot

all debts will go into the persons estate! The next of kin is not liable for the debts of the person, however they wouldn't receive inheritance etc until the debt is paid. If the amount in assets doesn't cover the persons liabilities, then those liabilities (debts) ill be written off.

lizzydrippin

can you insure the debt to make sure its paid off

catfish50

lizzydrippin wrote: »

can you insure the debt to make sure its paid off

Wouldn't that effectively be insuring the person's life? You can't insure another person's life for obvious reasons.

lizzydrippin

I meant to insure incase i die so my husband would be debt free

catfish50

lizzydrippin wrote: »

I meant to insure incase i die so my husband would be debt free

Are the debts in your name or your husband's name?

Whichever person the debts belong to can take out life insurance on his or her own life, naming the spouse as beneficiary. If the person dies, then the spouse can pay the debt with the life insurance.

But it could be expensive. Especially if the person doesn't die. I don't think a spouse is liable for a deceased person's cc debt (not sure).

moonrakerz

lizzydrippin wrote: »

I meant to insure incase i die so my husband would be debt free

Isn't it easier, and cheaper, to cut the card up ? OR - a really crazy idea; don't put too much on it and pay it off in full every month !!

lizzydrippin

the debt is already there I was trying to pay it off but I no longer have a job and I am not sure I can even make the minimum payment now

catfish50

OP, I notice you have another thread on this problem. Sounds like you're very worried, which I can understand, but I don't think insurance is the solution. It seems the immediate problem is not death but debt. Can you and your husband see a debt counsellor and work out a repayment plan?

Are you ill? If not, worrying about death could be a sign of depression. Maybe talk to your GP.