Joint credit cards can outlive a spouse. Here’s who may owe
CBS News says account type and state law can decide whether a surviving spouse must keep paying shared credit card debt.
By Georgia Hale · Staff Writer
3 min read
A spouse’s death can leave a surviving partner facing a second wave of paperwork, and CBS News says shared credit card accounts deserve quick attention because the debt may not disappear with the cardholder.
The key issue is what kind of account the couple actually had. CBS News reports that many people call any shared plastic a joint card, but lenders may treat those accounts very differently depending on whether both spouses were borrowers or one spouse was only allowed to use the card.
Joint borrower or authorized user
On a true joint credit card, both spouses agreed to be responsible for the balance. According to CBS News, when one of those borrowers dies, the surviving spouse generally remains on the hook for the remaining debt and must keep making payments.
The card issuer may also need to update the account after being notified of the death. CBS News says that can include removing the deceased spouse’s name or changing the account under the lender’s own rules.
The answer can be very different when the surviving spouse was an authorized user rather than a joint borrower. CBS News reports that an authorized user generally is not personally responsible for repaying the balance if the primary cardholder dies.
In that situation, the unpaid balance usually becomes a debt of the deceased person’s estate, according to CBS News. The report adds that community property laws in some states can create exceptions, so the result can depend on where the couple lived and how the account was set up.
Why the distinction matters now
CBS News noted that shared credit cards can be easy to miss while a family is handling funeral arrangements, insurance claims, bank updates and estate matters. That delay can be costly if payments are due and the surviving spouse is legally responsible for them.
The issue is also landing at a tough time for many households. CBS News reported that couples are using revolving credit card balances to cope with higher costs for basics such as housing, food and other essentials.
A death can also cut household income. CBS News points to the possible loss of a paycheck, Social Security benefit or pension income, which can make a large card balance harder to manage.
What to do if payments are too much
If a surviving spouse cannot afford the bill, CBS News says contacting the credit card company before the account becomes seriously delinquent may help. Some lenders offer hardship programs that can lower interest rates or change payment terms for borrowers facing financial strain after a spouse’s death.
CBS News also identifies debt relief as a possible option when the balance is no longer manageable. Debt settlement may allow eligible borrowers to resolve unsecured debt for less than the full amount owed, though the report says those programs are not right for every case.
Other possible routes include credit counseling, which can produce a debt management plan, or debt consolidation if the surviving spouse can still qualify for financing at a reasonable rate, according to CBS News.
The central advice is to move early. CBS News says surviving spouses should notify the card issuer promptly, confirm exactly how the account is titled and seek professional guidance if they are unsure what they owe.
This story draws on original reporting from CBS News.