Do you have a credit card and are wondering what happens if you don’t pay? If so, you’ve come to the right place. Here are a few things you should keep in mind:
Authorized users on a credit card account are not typically responsible for the balance on that account. However, in some states, spouses and legal partners are responsible for it. Estate management can also play a role in this matter. Missed payments can negatively impact the credit report of an authorized user. Because of this, it’s crucial to monitor your accounts with all three credit reporting agencies. If you miss a payment, you may be held responsible for the balance on your card.
One concern with credit card debt is who will pay it after you die. In most cases, the debt is transferred to the surviving spouse if the account is joint with another person. In states that share property, a surviving spouse may be responsible for paying the debt. If you die while your debts remain unpaid, the debt will be passed onto your estate. This is against federal law.
