A funeral is one of the few costs in life that’s guaranteed – but more than half of Americans admitted they would be forced to borrow money to afford a burial service, according to a new survey.
Some 58% of US adults said they would need to take on debt to pay for a single funeral, with many planning to take out loans or even resort to credit cards, according to a CardRates.com survey released Thursday.
“That’s a lot, that’s nearly 60% of American adults who are going to be blindsided when it comes to that cost,” Erica Sandberg, consumer finance expert at CardRates.com, told The Post.
Of those Americans unable to afford a funeral, 34% said they would take out a loan, 31% said they would borrow from family or friends, 26% said they would go into credit card debt and 8% said they would sell assets, according to the CardRates.com survey.
The median cost of a funeral with a casket and burial service is $8,300, according to the National Funeral Directors Association.
But Americans have a median of just $8,000 in their bank accounts, according to Federal Reserve data.
“That’s going to be a major problem when it comes to this economy because people are having more trouble meeting their expenses, which means they have more trouble setting cash aside, even for things that are inevitable,” Sandberg said.
As the war in Iran sends energy prices surging, inflation has ramped up to the hottest level since May 2024 and consumer confidence has tumbled to an all-time low.
The International Monetary Fund warned in a report Tuesday that further escalation in the Middle East could slow growth, fuel inflation and even tip the economy into a recession.
Sandberg said cash-strapped consumers are putting most of their funds toward more immediate expenses, like tuition or medical bills, while saving up for retirement – while funeral costs tend to fall to the wayside.
A Bankrate study released in February showed that less than half of US adults had enough emergency savings to cover three months of expenses – and that was conducted before the blockade of the Strait of Hormuz, which has caused the worst-ever energy supply disruption.
Borrowing from a family member or friend is one of the best options, since it typically comes with no interest, Sandberg said.
If you decide to use a credit card, you’ll need to find a card with a high credit limit and at least make a payment plan so you are actively working toward paying off that debt, she added.
Loans typically have a lower interest rate than credit cards, but like cards, it’s a good idea to set a shorter time frame to pay off the debt, she continued.
“It can be very difficult to make these choices when you are in an emotionally wrecked state,” Sandberg told The Post.
“Turn to others that you trust and have them walk you through the options because you may not be in any real state to make those great choices when you need to.”
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