A new survey from Debt.com reveals that the percentage of Americans incurring debt after a death has more than doubled, rising from 14% in 2024 to 37% in 2025. The annual Death and Debt survey found that credit cards are the most common funding method for end-of-life expenses, with 59% of those who borrowed using credit cards, followed by personal loans (38%) and funeral-specific financing (22%).
“Funeral costs have become a new financial crisis,” said Howard Dvorkin, CPA and Chairman of Debt.com, in a statement. “Families want to honor their loved ones, but too often, compassion outweighs affordability — and credit becomes the only way to say a final goodbye.” The survey of 1,000 Americans found that nearly 3 in 5 (57%) said they could not afford a loved one’s funeral costs today without incurring debt.
The financial repercussions extend beyond the funeral itself. Over one-third (36%) of Americans said they would delay paying other essential bills such as rent, credit cards, or utilities to cover funeral costs. After the service, 25% reported feeling anxious due to funeral-related debt, 19% struggle to keep up with payments, and 17% had already postponed other bills to manage this debt. The amount of debt taken on is also increasing: in 2025, 13% borrowed less than $1,000 (up from 6% in 2024), 17% borrowed $1,000 to $5,000 (up from 6%), and 7% borrowed more than $5,000 (up from 2%).
The survey also uncovered a lack of preparation. Half of all Americans have not discussed how their debt or funeral expenses will be handled after their death. Knowledge about what happens to someone’s debt after they die has decreased to 55% in 2025, down from 61% in 2024, though still above the 45% recorded in 2023. Generational differences emerged: Generation X is most likely to have taken on debt after a loved one’s death, with Millennials leaning on personal loans and Baby Boomers using funeral loans more than other age groups. For more insights, visit Debt.com.
