Credit Card Debt Holds Americans Back From Estate Planning

Survey Finds Debt, Inflation, and Political Concerns Shape Americans' Approach to Estate Planning

AUSTIN, Texas, Feb. 24, 2025 /PRNewswire-PRWeb/ -- Nearly half of Americans lack any estate planning documents, such as a will or living trust, with many citing credit card debt, inflation, and political uncertainty as reasons for delaying the process, according to a new CreditCards.com survey of 1,500 U.S. adults.

One of the top reasons Americans avoid estate planning is the belief that they don't have enough assets to justify it. Despite this, 85% of respondents have bank accounts, 77% own cars, and 61% own homes—all of which could benefit from structured estate planning.

Other key reasons for forgoing estate planning include procrastination (45%), feeling too young (22%), lack of knowledge (17%), cost concerns (15%), and debt burdens (8%).

"Estate planning isn't just for wealthy people," says John Egan, credit cards, insurance, and personal finance expert contributor at CreditCards.com. "Any adult who owns assets or has dependents should create an estate plan. Without one, your wishes might not be carried out after you die."

Debt is another factor influencing estate planning decisions. Among those with credit card debt, 22% owe between $2,001 and $5,000, 19% owe $5,001 to $10,000, and another 22% owe more than $10,000.

"Debts typically are paid by your estate before beneficiaries receive any assets. Some debts might be forgiven if your estate doesn't have enough to cover them," says Egan. "Regardless of how much debt you have, creating an estate plan is a wise move, as this kind of planning is designed to financially protect your loved ones."

Inflation has made 44% of respondents more aware of the need for an estate plan. The Trump administration's policies have also influenced estate planning decisions, with 36% of Americans prioritizing estate planning due to concerns. Public health crises have played a role as well; 43% of Americans say COVID-19 increased their focus on estate planning.

Survey Methodology
This survey was launched in January 2025 through the Pollfish platform. A total of 1,500 U.S. residents completed the full survey. The sample was balanced to reflect the age and gender distribution of the U.S. population.
Access the full report here: https://www.creditcards.com/statistics/credit-debt-holds-americans-back-from-estate-planning/

Media Contact

Jennifer Miller, CreditCards.com, 000-0000, [email protected]

SOURCE CreditCards.com