Resolve it a death or divorce or traumatic event,” says Kerns.
It happens too often: One spouse agrees to pay off a joint card as part of a divorce settlement.
So it’s likely the credit card company will be at the back of the line when it comes to paying debts from the estate.
That doesn’t mean the credit card company won’t try to recoup the debt from family members, so don’t fall for it if you know you’re not liable.
“Sometimes, people can be on a credit card and not even know it,” says Pennsylvania attorney Linda A. “Maybe when they filled out the credit card applications, (the joint cardholder) didn’t even tell them.” These accounts could show up years later, at the time of a death or divorce.
Credit card debt is unsecured, unlike a mortgage, which is secured by property, or a car that is secured by the vehicle.
If you’re a joint cardholder, meaning you co-signed for the credit card, you’re liable for the debt.
Parents sometimes do this for children who are just starting out, or adult children will co-sign with their elderly parents, perhaps to help keep track of expenses.
If you’re planning a romantic weekend getaway, why not treat yourself to a couple of nights of luxury?
Sure, you could earn two nights at a participating Ritz-Carlton hotel after spending ,000 on purchases in the first three months from account opening.