Curated News
By: NewsRamp Editorial Staff
October 29, 2025
Funeral Debt Crisis: 37% of Americans Now Borrow for Final Expenses
TLDR
- Debt.com's survey reveals funeral debt creates financial vulnerability, offering opportunities for financial advisors to provide pre-planning services that give clients an advantage.
- Debt.com's 2025 survey shows 37% of Americans incur funeral debt, primarily through credit cards (59%), personal loans (38%), and funeral financing (22%).
- Addressing the funeral debt crisis through financial education and planning can reduce family stress and create more secure futures for grieving households.
- Generation X carries the most funeral debt while using credit cards, Millennials prefer personal loans, and Baby Boomers lead in funeral loan usage.
Impact - Why it Matters
This news matters because it reveals a hidden financial crisis affecting millions of American families during their most vulnerable moments. When people are grieving the loss of a loved one, they're forced to make difficult financial decisions that can create long-term debt burdens. The surge in funeral-related debt indicates that traditional safety nets and savings are insufficient for many households, forcing them to choose between honoring their loved ones properly and maintaining financial stability. This trend has broader implications for household financial health, as funeral debt can lead to cascading financial problems including delayed bill payments, credit damage, and reduced ability to handle other emergencies. The data suggests this isn't just a personal finance issue but a societal problem requiring better financial education, more affordable end-of-life options, and improved family communication about financial planning.
Summary
American families are facing a growing financial crisis as funeral expenses push millions into debt, according to the latest Death and Debt survey by Debt.com. The data reveals a staggering surge in funeral-related debt, with the percentage of Americans incurring debt after a death skyrocketing from 14% in 2024 to 37% in 2025. Credit cards have become the primary funding method for these final expenses, with 59% of borrowers using plastic to cover costs, while 38% relied on personal loans and 22% turned to funeral-specific financing. The situation is particularly dire for Generation X, who are most likely to carry debt from loss while balancing both children and aging parents.
The financial repercussions extend far beyond the funeral service, creating long-term stress for grieving families. The survey found that 36% of Americans would delay paying essential bills like rent, credit cards, or utilities to cover funeral costs. Following services, 25% reported feeling anxious due to funeral-related debt, 19% struggle to keep up with payments, and 17% had already postponed other bills. The debt amounts are also increasing significantly, with those taking on $1,000-$5,000 rising from 6% to 17% year-over-year, and those borrowing over $5,000 jumping from 2% to 7%. Howard Dvorkin, CPA and Chairman of Debt.com, describes this as "a new financial crisis" where compassion often outweighs affordability.
The crisis is compounded by poor financial planning and communication within families. Half of all Americans haven't discussed how their debt or funeral expenses will be handled, and knowledge about what happens to someone's debt after they die has actually decreased from 61% in 2024 to 55% in 2025. The generational breakdown shows distinct patterns: Gen X most frequently uses credit cards, Millennials prefer personal loans, and Baby Boomers lead in using funeral loans. With 57% of Americans admitting they couldn't afford a loved one's funeral without incurring debt, this represents a widespread financial vulnerability affecting households across the country.
Source Statement
This curated news summary relied on content disributed by Noticias Newswire. Read the original source here, Funeral Debt Crisis: 37% of Americans Now Borrow for Final Expenses
