Rising Financial Burdens: Survey Reveals Americans Borrowing More for Funerals
According to Debt.com's latest Death and Debt survey, more American families are confronting a grim financial reality when facing the loss of a loved one. The survey revealed that an alarming 37% of U.S. adults have taken on debt to cover funeral or end-of-life expenses, a significant increase from just 14% the previous year. This shift highlights the growing financial strain associated with saying goodbye to loved ones, as many families find that the emotional toll of grief often comes with a hefty price tag.
This year’s survey included responses from 1,000 Americans, showcasing a clear trend towards financial vulnerability during a time of profound loss. Credit cards emerged as the most frequently used method for managing these expenses, with 59% of those who borrowed turning to them, while 38% opted for personal loans. A smaller segment, 22%, relied on specialized funeral financing options.
Howard Dvorkin, CPA and Chairman of Debt.com, articulated the dire situation: "Funeral costs have become a new financial crisis. Families want to honor their loved ones; however, compassion often overshadows affordability, resulting in credit becoming the only recourse for a final farewell."
The repercussions of this financial strain extend beyond the funeral service itself. Nearly 36% of respondents mentioned they might delay essential bills such as rent and utilities to manage funeral expenses. Following the service, 25% reported feeling anxious due to the resulting debt, while 19% struggled to make payments. Alarmingly, 17% had already pushed back other financial obligations to juggle the costs associated with their loss.
The survey also illustrated a disturbing trend regarding the amount of debt being taken on for funeral expenses. The number of Americans borrowing less than $1,000 rose sharply from 6% in 2024 to 13% in 2025. Similarly, those borrowing between $1,000 and $5,000 increased from 6% to 17%, while the percentage borrowing more than $5,000 grew from 2% to 7% in the same timeframe. This points to a broader trend where rising funeral costs are forcing more families into significant debt.
Further insights from the survey revealed that many Americans remain uninformed about how debts are handled after their death. Nearly half of all respondents have not had any conversations about the financial implications surrounding their debts or funeral costs, representing a gap that could lead to further complications during an already challenging time. Despite the slight improvement over the past year, only 55% of Americans reported understanding what happens to a person's debt after they die, marking a decline from 61% in 2024.
When breaking down responses by generation, it became clear that Generation X, who are often juggling responsibilities for both children and aging parents, are most likely to incur debt following the death of a loved one. Interestingly, while Millennials opted for personal loans more than other segments, Baby Boomers were more inclined to utilize funeral loans as a financial strategy.
As the findings from Debt.com illustrate, the rising costs associated with funerals demand urgent attention. Families need clearer resources and education around end-of-life financial planning to help alleviate the burdens that accompany grief. For further information and resources on financial management, families can turn to Debt.com, a trusted source for those navigating the complexities of debt management, including credit card debt and student loans.
Through connecting individuals with vetted financial professionals, Debt.com strives to empower Americans to make informed decisions regarding their finances and regain control during vulnerable times.
This year’s survey included responses from 1,000 Americans, showcasing a clear trend towards financial vulnerability during a time of profound loss. Credit cards emerged as the most frequently used method for managing these expenses, with 59% of those who borrowed turning to them, while 38% opted for personal loans. A smaller segment, 22%, relied on specialized funeral financing options.
Howard Dvorkin, CPA and Chairman of Debt.com, articulated the dire situation: "Funeral costs have become a new financial crisis. Families want to honor their loved ones; however, compassion often overshadows affordability, resulting in credit becoming the only recourse for a final farewell."
The repercussions of this financial strain extend beyond the funeral service itself. Nearly 36% of respondents mentioned they might delay essential bills such as rent and utilities to manage funeral expenses. Following the service, 25% reported feeling anxious due to the resulting debt, while 19% struggled to make payments. Alarmingly, 17% had already pushed back other financial obligations to juggle the costs associated with their loss.
The survey also illustrated a disturbing trend regarding the amount of debt being taken on for funeral expenses. The number of Americans borrowing less than $1,000 rose sharply from 6% in 2024 to 13% in 2025. Similarly, those borrowing between $1,000 and $5,000 increased from 6% to 17%, while the percentage borrowing more than $5,000 grew from 2% to 7% in the same timeframe. This points to a broader trend where rising funeral costs are forcing more families into significant debt.
Further insights from the survey revealed that many Americans remain uninformed about how debts are handled after their death. Nearly half of all respondents have not had any conversations about the financial implications surrounding their debts or funeral costs, representing a gap that could lead to further complications during an already challenging time. Despite the slight improvement over the past year, only 55% of Americans reported understanding what happens to a person's debt after they die, marking a decline from 61% in 2024.
When breaking down responses by generation, it became clear that Generation X, who are often juggling responsibilities for both children and aging parents, are most likely to incur debt following the death of a loved one. Interestingly, while Millennials opted for personal loans more than other segments, Baby Boomers were more inclined to utilize funeral loans as a financial strategy.
As the findings from Debt.com illustrate, the rising costs associated with funerals demand urgent attention. Families need clearer resources and education around end-of-life financial planning to help alleviate the burdens that accompany grief. For further information and resources on financial management, families can turn to Debt.com, a trusted source for those navigating the complexities of debt management, including credit card debt and student loans.
Through connecting individuals with vetted financial professionals, Debt.com strives to empower Americans to make informed decisions regarding their finances and regain control during vulnerable times.
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