FAQ: Understanding the Rising Funeral Debt Crisis in America
Summary
A new Debt.com survey reveals that funeral debt has surged dramatically, with 1 in 3 Americans now borrowing for end-of-life costs, creating significant financial hardship for families already dealing with emotional loss.
What is the main finding of the Debt.com survey about funeral costs?
The survey shows that the percentage of Americans incurring debt after a death surged from 14% in 2024 to 37% in 2025, meaning 1 in 3 Americans now borrow for end-of-life expenses.
How are most Americans funding funeral expenses when they can’t afford them?
Credit cards are the most frequent funding method, with 59% of those who borrowed using credit cards, while 38% relied on personal loans and 22% used funeral-specific financing.
What are the long-term financial consequences of funeral debt?
The debt creates lasting financial stress, with 25% feeling anxious due to funeral debt, 19% struggling to keep up with payments, and 17% postponing other bills to manage this debt.
How much debt are Americans taking on for funeral expenses?
The amounts are increasing significantly: 13% take on less than $1,000 (up from 6% in 2024), 17% take on $1,000-$5,000 (up from 6%), and 7% take on more than $5,000 (up from 2%).
What percentage of Americans say they couldn’t afford a funeral without going into debt?
Nearly 3 in 5 Americans (57%) say they could not afford a loved one’s funeral costs today without incurring debt.
How are Americans handling end-of-life financial planning according to the survey?
Half of all Americans have not discussed how their debt or funeral expenses will be handled, and knowledge about what happens to someone’s debt after they die has decreased from 61% in 2024 to 55% in 2025.
What generation is particularly affected by end-of-life expenses according to the content?
Generation X, the generation balancing both children and aging parents, is carrying significant burden from end-of-life expenses.
Why are families going into debt for funeral costs according to Debt.com’s chairman?
Howard Dvorkin, CPA and Chairman of Debt.com, explains that ‘families want to honor their loved ones, but too often, compassion outweighs affordability — and credit becomes the only way to say a final goodbye.’
What immediate financial sacrifices are people making to cover funeral costs?
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.
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