The financial burden of funeral expenses has escalated dramatically, with new data showing 37% of Americans now incur debt to cover end-of-life costs, a substantial increase from just 14% in 2024. The annual Death and Debt survey by Debt.com reveals that credit cards have become the primary funding method for final expenses, used by 59% of those who borrowed money for funeral costs. This represents a significant shift in how Americans manage one of life's most difficult financial challenges.
Howard Dvorkin, CPA and Chairman of Debt.com, explains the troubling trend: "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 beyond credit cards, 38% relied on personal loans and 22% turned to funeral-specific financing to cover these essential expenses. The financial vulnerability extends well beyond immediate costs, with 57% of Americans reporting they could not afford a loved one's funeral today without incurring debt.
The repercussions of this funeral debt are both significant and long-lasting. The survey found that 36% of Americans said they would delay paying other essential bills such as 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 to manage this debt. These financial pressures create a cascade effect that can impact overall financial stability for months or even years after a loved one's passing.
The amount of debt Americans are taking on has increased substantially across all categories. Those borrowing less than $1,000 doubled from 6% in 2024 to 13% in 2025, while those taking on $1,000-$5,000 nearly tripled from 6% to 17%. The most concerning increase came in the highest debt category, with those borrowing more than $5,000 rising from 2% to 7% year-over-year. This escalation in borrowing amounts indicates that funeral costs are not only affecting more Americans but also requiring larger financial commitments.
Generation X appears to be bearing the heaviest burden, being most likely to have taken on debt after a loved one's death while also balancing children and aging parents. The survey found generational differences in borrowing methods, with Gen X most often using credit cards, Millennials leaning on personal loans, and Baby Boomers outpacing other generations in using funeral loans. The data also reveals concerning gaps in financial planning, with half of all Americans not discussing how their debt or funeral expenses will be handled. While knowledge about what happens to someone's debt after they die has improved from 2023 levels, it decreased from 61% in 2024 to 55% in 2025, indicating a need for greater financial education around end-of-life planning.
