By Jorge Vazquez
02 Nov 2023, 12:34 PM EDT
A Debt.com survey of 1,000 Americans shows that more than half would go into debt to pay for a family member’s funeral, with 3 in 10 already doing so.
Debt.com’s new “Death and Debt” section delves into how Americans deal with death and the role money plays. “Debt is so pervasive in our culture that it is literally a cradle-to-grave problem,” said Howard Dvorkin, CPA and president of Debt.com. “We take on debt when our children are born and we create debt when we die, which our children often have to pay.”
This feeling is reflected in the result of the survey, which shows that 55% said that they would “assume debts for the funeral of a family member.”
More than half (52%) of those who were unable to pay for their loved ones’ final wishes ended up putting the debt on their credit cards. With the average credit card interest rate now over 28%, the debt is likely to last for many years, the Debt.com report says.
Survey Conclusions:
· 52% went into credit card debt to pay for a funeral
· 28% said that funeral debt makes them anxious
· 14% said they had to postpone paying other bills to cover funeral expenses
· 70% stated that they did not have a will and cited as the main reasons not having time, being too young, not having an estate and it being a too stressful process.
“Each of us must think not only about our own passing, but how it will affect the lives of those we leave behind. This includes everything from writing a will to planning our funeral,” Dvorkin said.
The survey also asked if they knew what happened to a loved one’s debt after their death, and 55% did not know.
For more details about the survey and its methodology, go here.
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