Many people often think that when they die their credit card debt is wiped clean and forgiven by the credit card companies.  Unfortunately this is not usually the case.  This scenario is dictated by the state where you reside.  Each state has its own laws about credit card debt after the death of the cardholder.

It is shocking to most people also to find out that even if they are not on the credit card account as a signor or as an owner they can stil be repsonsible.  Let me put that another way.  There are states in the US that have laws stating that if a person has a credit card and is the only person on the account their spouse is responsible if they pass away.  To find out more about your particular situation contact your state or call your credit card company and inquire about it.

Even if a spouse is not working or have large financial assets you may want to consider purchasing life insurance on them if they have substantial credit card debt you will be liable for upon death.  Remember, life insurance is not only for preserving assets but is also used for minimizing risks inlcuding debt.

This entry was posted on Thursday, April 2nd, 2009 at 11:50 am and is filed under Credit Repair. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.