For Quick Alerts
For Daily Alerts

Who Pays The Credit Card Debt In India After Death Of Cardholder?


Credit cards have become the most preferred way of payments. While they are used as convenience, it must also be understood that there is an obligation to pay the money outstanding on the credit card.

Who Pays The Credit Card Debt In India After Death Of Cardholder?

These days legal processes are completed faster and you may have to cough up heavy financial and legal charges, if you fail to honor your commitments. It is a must to understand the need for timely payments on a credit card.

What happens when you default on a credit card?

If you begin defaulting, the bank would send you several reminders and also make phone calls. If the outstanding are really large, the bank will then take appropriate steps to recover debt on the credit card.

Small amounts the banks may really ignore. But, in the end not honoring your commitment would means that you get hit with a bad credit score. So, it is best to make timely payments.

What happens to credit card debt on death?

There have been several instances, where there has been a death in the family, and the person who has passed off has left some amounts on the credit card as outstanding.

Now, the onus for the payment on death of the card holder lies with the legal heir. So, to the extent there has been a property inherited, the legal heir needs to pay the amount outstanding on the credit card with interests and all other charges, as applicable.

You can of course, talk to the bank and try and resolve matters or also complaint to the banking ombudsman in case of harassment.

The bank or the financial institution in question has to file a civil suit for recovery and then the legal representative of the card holder has to make good the payment from the property of the deceased person.


You cannot have the estate of a person and not honor the debt obligations. It is like having the cake and eating it too. So, be sincere and honest to fulfil your obligation.

Read more about: credit card
Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more