What happens to cred


A loved one's death is traumatic enough, but when the deceased leaves behind credit card debt, it can mean even more headaches and stress.'s Dana Kochnower takes a look at what happens to credit card debt after death and who is responsible for repayment. TRANSCRIPT: Voiceover: As the recession drags on, more and more Americans are having a difficult time making ends meet. David Jones, president, Association of Independent Consumer Credit Counseling Agencies (AICCCA): "We're seeing people with a lot of debt these days. More than they have had in the past." Voiceover: And it's hitting older Americans especially hard. According to a survey by the Federal Reserve, about half of all households headed by someone aged 55 to 64 carry credit card debt. And more than a third of those headed by someone aged 65 to 74 are also carrying credit card debt. It's an issue, Jones says he's seeing more these days... Jones: We're also seeing a shift of difficulties with older Americans. They're reaching retirement age or have already retired, so, yeah, it's a serious problem." Voiceover: If an older parent or spouse dies, sometimes they leave some of that credit card debt behind. So who is responsible for paying it off? Elder law attorney Ron Fatoullah: The debt does not die when they die. Their estate would have to pay off their debts... certain things get paid off first... There's funeral expenses, that's a priority. There's administration expenses to administer the estate ...



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