If you don’t make payments on your credit cards, you’re likely wondering, “What happens if I die?” The short answer is that you’re responsible for the debt, and your family will be held responsible for it. In some cases, you can request loan forgiveness, but this is not always possible. In those cases, you should contact your credit card issuer and seek advice on how to handle the situation.
Although authorized users are not obligated to pay off the debt of the primary borrower, they can still be liable if the account owner dies. In these cases, the authorized user has no formal agreement with the credit card issuer, so the latter cannot take legal action or hurt their credit score. To take over a credit card, an authorized user must first apply with the credit card issuer and be approved based on their credit and financial situation.
In some states, the estate will have to pay the debt of sole owners. The estate will have to have the money to pay off the debt, after all other debts have been settled. The account can also be co-owned by other people or be an authorized user. This option is only available if the account owner is deceased. However, this method is not recommended if the debtor does not have the funds to pay it.