Whether it’s a credit card, car loan, mortgage or something else, you’ve probably found yourself wondering; what happens to my debt when I die?
According to a survey of over 1000 Americans conducted by creditcards.com, 1 in 5 US adults believe their debt will never be paid off. Just because you’ve died, your debt doesn’t go away. Rest assured though, it’s not something your family members will typically inherit. However, if they are a cosigner on a debt, they will still be responsible for payment.
If you pass away with debt, creditors may reach out to your estate to seek payment. In some cases, pushy creditors have been known to aggressively reach out to your family or next of kin.
So, what happens exactly? Does the car you owe money on get repossessed? Does your family have to liquidate some of your assets to repay your debts?
It all comes down to the kind of debt you have. To help you have a better understanding, we’ve broken down different scenarios and what happens to your debt when you die.