Rising Costs Force One in Three Americans to Borrow for Funeral Expenses

A recent survey conducted by Debt.com has unveiled alarming trends in how Americans are managing the financial burdens associated with funeral and end-of-life expenses. With the costs of saying goodbye steadily escalating, one in three adults in the United States is now resorting to borrowing money to cover these expenses, a significant increase from previous years.

According to the annual Death and Debt survey, the percentage of individuals going into debt after the passing of a loved one has surged from only 14% in 2024 to an astonishing 37% in 2025. This drastic rise is indicative of a mounting crisis that intertwines grief with financial stress.

The Brutal Reality of Funeral Costs

Funeral costs can often exceed what most families are prepared for, leading many to rely on credit cards to finance these expenses. The survey highlights that nearly 59% of those who borrowed used credit cards, while 38% tapped into personal loans, and 22% sought out specialized funeral financing options. Howard Dvorkin, CPA and president of Debt.com, noted, “Funeral costs have become a new financial crisis. Families want to honor their loved ones, yet frequently, compassion outweighs affordability, leaving credit as the only option.”

The financial implications of these loans are significant, as the survey reveals that almost 60% of respondents indicated they could not manage to cover funeral costs without incurring debt. The emotional toll of losing a loved one is exacerbated by persistent financial strain, with about 36% of Americans admitting they would delay payment on essential bills—like rent or utilities—to pay for funeral costs.

The Long-Term Effects of Debt

Following a funeral service, many individuals reported feelings of anxiety due to the accrued debt, with 25% expressing concern about their ability to keep up with payments related to funeral costs. The survey found that 19% were struggling to manage ongoing financial responsibilities and that 17% had already postponed other bill payments to accommodate funeral-related debt.

The survey also delineated a troubling trend: more Americans are taking on larger amounts of debt for funeral expenses. Compared to the previous year, the number of respondents incurring debts under $1,000 rose from 6% to 13%, while those borrowing between $1,000 and $5,000 surged from 6% to 17%. Additionally, the percentage borrowing more than $5,000 climbed from 2% in 2024 to 7% in 2025.

Lack of Awareness and Conversations About Finances

Interestingly, the survey revealed that many Americans are not adequately prepared for the financial realities of death. Half of the participants admitted to having never discussed how debts or funeral expenses would be handled, signaling a lack of communication in families about these critical issues. Although awareness about what happens to one’s debt after passing has increased, the 55% who reported understanding it represents a slight decline from 2024.

Generational Insights on Funeral Financing

Generational perspectives also play a role in how individuals manage end-of-life expenses. Generation X, which often balances concerns for both children and aging parents, exhibits the highest rates of incurring debt following a loved one’s death. In contrast, Baby Boomers report being less likely to experience such burdens. Credit cards are predominantly used by Generation X to cover funeral costs, while Millennials often rely on personal loans more than other demographics, and Baby Boomers show a tendency towards funeral-specific financing.

Conclusion

As financial burdens linked to funeral costs continue to rise, it is crucial for families to engage in open discussions about debt and end-of-life planning. Resources like Debt.com serve to educate consumers and provide support for managing these expenses. The findings of this survey highlight an urgent need for more financial literacy and proactive planning to alleviate the intersection of grief and financial distress many families are experiencing today.