credit card interest

[tanya mulcrare]

Does ones credit card interest continue after one has died? if it does why does it ?

 

[ALawyer]

Yes it continues UNLESS the card holder (and sometimes his or her spouse) had taken out optional credit life insurance offered by the card company often in cooperation with an insurer with what I regard as somewaht questionable claims payment practices, that pays off the outstanding debt in full. The money is owning and the estate owes it after the death. Death does not wipe out debt or interest; the deceased can not pay it but his or her assets have to. If there are not enough assets in the deceased's estate to pay off all obligations, the credit card company eats the loss. But then no one inherits anything as the deceased's creditors must be paid first (after expenses of the funeral and administration of the estate).