In the UK, credit card debt doesn't pass to your family when you die. It is paid from your estate, and if the estate can't cover it, the lender usually has to accept the loss. There are exceptions for joint accounts and guarantors, and the order in which an executor deals with debts matters.
The basic rule
When someone dies, credit card debt in their sole name becomes a debt of their estate: the money, property and belongings they leave behind. The executor or administrator pays valid debts from the estate before beneficiaries receive anything. Children, spouses and siblings aren't personally liable just because they are related. If there is no estate, or not enough, relatives aren't expected to make up the gap. That is the short answer to what happens to credit card debt when you die.
When someone else is liable
- Joint accounts. The surviving holder becomes liable for the whole balance, not half. Joint credit cards are uncommon in the UK, but joint loans and overdrafts are not.
- Guarantors. A person who guaranteed the borrowing can be pursued for it.
- Authorised users. Someone with an additional card on the main holder's account isn't liable for the balance.
What an executor should do
- Notify each card provider and ask for the balance at the date of death. Stop all use of the cards.
- List every asset and debt before paying anything to beneficiaries. An executor who hands out the estate too early can be held personally responsible if debts then come to light.
- Pay debts in the right order. Funeral and administration costs and secured debts generally come before unsecured debts such as credit cards.
- If the estate can't cover everything, take advice before paying anyone, because the order in which debts are paid is set by law.
- Get free help from National Debtline, Citizens Advice or MoneyHelper if you are unsure.
Questions people ask
- Can the card company contact me? It can write to the executor. If you aren't the executor and aren't liable, you can say so. If the contact is persistent or aggressive, get advice from a free debt charity.
- Does it affect my credit file? Not unless you were a joint holder or a guarantor.
- What if the estate is short? The lender normally has to write off what is left.
- Is a spouse responsible? Not for debts in the other person's sole name, even if they depended on that person financially.
If you are worried about debt of your own, free help is the place to start. See our guides to the Debt Relief Order and other options and to negotiating a debt settlement yourself.