What happens to credit card debt if you become disabled and can't work?
Shifting from regular income to disability has a big impact on your paycheck, but what about your credit card debt?
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March 26, 2026 / 12:00 PM EDT / CBS News
A sudden disability can reshape your finances faster than almost any other life event. One day, your income supports your routine expenses and monthly credit card payments ; the next, you may be relying on disability benefits that cover only a portion of what you once earned. The problem is, though, that the missed paychecks, the hospital stay or the diagnosis that rewrites your future won't register on your credit card statement. The balance is still there, the minimum payment is still due and the interest is still compounding .
That reality is hitting many Americans hard right now. Borrowers ended last year with more debt than ever before, in part because credit card balances hit a fresh high at the close of the year. As a result, tens of millions of people are now trapped in cycles of persistent credit card debt, and the interest charges are racking up at a fast rate. That debt cycle can be even more difficult to deal with, though, if you're also facing a sudden disability that's impacting your ability to earn a paycheck.
So what actually happens to your credit card debt when a paycheck stops coming and a disability starts? And what options, if any, are available to keep your debt issues from getting worse? That's what we'll detail below.
Take steps to tackle your high-rate debt problems today .