Funeral Debt Crisis Worsens as One-Third of Americans Now Borrow for End-of-Life Costs

The financial burden of saying goodbye to loved ones has reached crisis levels in the United States, according to new data from Debt.com's annual Death and Debt survey. The percentage of Americans incurring debt after a death has surged dramatically from 14% in 2024 to 37% in 2025, representing a troubling escalation in funeral-related financial strain.

Howard Dvorkin, CPA and Chairman of Debt.com, explains the severity of the situation. "Funeral costs have become a new financial crisis. 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 credit cards are the most common funding method for these final expenses, with 59% of those who borrowed using credit cards, 38% relying on personal loans, and 22% turning to funeral-specific financing.

The financial vulnerability extends beyond immediate borrowing, with 57% of Americans reporting they could not afford a loved one's funeral costs today without incurring debt. The repercussions extend well beyond the funeral service itself, creating long-term financial stress for grieving families. 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.

The survey data reveals concerning patterns in how funeral debt affects household finances after the service. Twenty-five percent of respondents 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 amounts of debt Americans are taking on for funeral expenses show significant increases across all categories, with those borrowing less than $1,000 rising from 6% to 13%, those borrowing $1,000-$5,000 increasing from 6% to 17%, and those taking on more than $5,000 growing from 2% to 7% between 2024 and 2025.

Generation X appears to be carrying the heaviest burden, being most likely to have taken on debt after a loved one's death while balancing both children and aging parents. The survey found generational differences in borrowing methods, with Gen X most often turning to credit cards, Millennials leaning on personal loans more than other age groups, and Baby Boomers outpacing other generations in using funeral loans. For additional insights and information about financial planning, visit https://www.debt.com.

The survey also uncovered concerning gaps in financial preparedness, with half of all Americans not having discussed how their debt or funeral expenses will be handled. While knowledge about what happens to someone's debt after they die remains higher than in 2023, it has decreased from 61% in 2024 to 55% in 2025, suggesting a need for increased financial education around end-of-life planning.