Funeral Debt Is Rising: Here’s Why, and How to Pay for a Funeral with No Money

Life has become increasingly expensive in recent years. So has dying. And those left behind are shouldering the grief, and the financial burden.

The median cost for a funeral and viewing was $8,300 in 2023, according to the National Funeral Directors Association. The average is closer to $10,000, and it’s impacting Americans heavily.

When you include other end-of-life expenses, someone passing away can grow to be a five-figure financial burden. And during a time when emotions are high, making sound financial decisions can be difficult.

Here’s what you need to know about funeral debt, how you can financially prepare if you have an older parent or family member, and how to pay for a funeral with no money.

Funeral Debt Is On The Rise

A recent CBS News story featured two daughters, Mary Wenzel and Christine Gabriel, who had to shoulder the cost of their 85-year-old father’s funeral. He had no life insurance or savings, leaving them on the hook for his funeral, costing them $12,000. They are now making monthly payments, but it will take them years to pay off the debt, adding years-long financial anxiety to the mourning process.

While sad, this issue is growing rapidly. What’s more, nearly 60% of people put funeral debt on credit cards, where the current average interest rate is roughly 21%. Here’s a rough example of what that costs over time.

So what’s causing this rise in funeral debt?

First, the sticker shock. A Choice Mutual survey finds that more than half of U.S. adults over 45 believe funerals cost under $10,000. Unfortunately, funeral services quickly exceed that figure. With the average American unable to meet a $1,000 emergency, this expense, piled onto the grieving process, makes for a financial calamity.

Second, there is a lack of planning. The same Choice Mutual survey says 30% of Americans haven’t discussed how they would pay for funeral expenses. Additionally, according to the NFDA, only 19% have pre-planned and prepaid for their funeral.

It’s not an enjoyable thing to plan for, but if you or your loved ones are getting older, it may be worth considering one’s posthumous wishes and plans.

How To Manage Existing Funeral Debt

If you’re like Mary and Christine, the mounting debt can feel overwhelming. However, there are several things you can do to mitigate the brunt of existing funeral debt:

• Make a plan to pay it off. Add the payments to your monthly budget and do your best to pay them off.
• If you have other debts, consider debt consolidation.
• If the debt is on a high-interest credit card, consider paying it off with a personal loan or doing a balance transfer to a 0% APR credit card.

There are also assistance programs offered through government agencies, churches, and local charities that may be able to help offset any expenses you’ve incurred. Keep reading for more information.

How to Plan For (Or Offset) Funeral Costs

Here are several resources to avoid this thought during your grieving: How do I pay for a funeral with no money?

1. Preplanning Is Essential

Here are a few items to consider while the person in mind is still living:

• Establish posthumous plans and preferences: This includes establishing a will/trust with the person’s preferences after death.
• Prepaying funeral homes: You can secure a burial plot and lock in today’s prices. Funeral costs only go higher, so paying for it today could alleviate a significant stress later. Additionally, this gives you time to shop around.
• Consider purchasing life insurance: Part of this pre-planning can be purchasing life insurance, which is the top reason Americans own life insurance policies, according to LIMRA, a market-research firm. Keep in mind that securing the payout can sometimes take months, putting policy beneficiaries on the hook. Depending on your state and funeral home, you may be able to put the funeral home as a beneficiary to receive payment.
• Burial insurance: This is a smaller policy meant to cover expenses related to funeral and end-of-life expenses. Be sure when shopping for policies that the policy isn’t tied to one funeral home.

Related Article: How to Pay for a Funeral

2. Shop Around (Use Your FTC Funeral Rule Rights)

In 1984, the Federal Trade Commission established funeral rules protecting consumers from high-pressure sales within funeral homes. These parameters require businesses to provide itemized price lists, allow you to decline services, offer the ability to bring your own casket/urn, and more.

Additionally, consider the financing options available from the funeral home. Some don’t offer it and require payment in full, while others have in-house financing.

The key here is just like a car purchase: shop around. Walking into a funeral home under grief could result in paying thousands more than you need to.

3. Choose Lower-Cost Alternatives

If a funeral is simply unaffordable, there are several lower-cost options to consider. Here are some rough price estimates of alternatives to funerals:

• Direct cremation: ~$1,000 – $3,000
• Direct burial: ~$1,200 – $5,000
• Green / natural burial: ~$1,000 – $4,000+ on average
• Memorial service without body present: ~$200–$500 (for officiant) + $500–$1,500 (flowers, décor)
• Home funerals: ~$500‑$2,000 (permits, basic supplies, minimal professional help) — highly variable
• Body donation / anatomical gift: Often free (or very low cost), since the institution typically covers cremation afterward
• Casket alternatives (cardboard, wicker, pine): ~$100 – $1,000 depending on material
• Cremation with keepsake urn: Cremation cost of ~$1,000–$3,000 + urn cost (can be as low as a few hundred)

4. Look Into Assistance Options

For those who need help, there are options. Charities and nonprofit organizations often provide direct financial aid for funeral and burial costs. Local churches may also offer support, ranging from donations to covering part of the funeral service or providing volunteers to help with arrangements. Some community organizations, fraternal societies, or veterans’ groups can provide additional funding or in-kind services like caskets or transportation.

You may also consider looking into government benefits. For example, the Social Security Administration provides a one-time death benefit of $255 to help with burial costs for eligible recipients, which can be claimed by the deceased’s surviving spouse or children. Other federal, state, or local programs may offer financial help for low-income individuals or those who were receiving public assistance prior to death.

5. Financial Calculators

Funeral expenses often require quick decisions, which can make financial planning feel overwhelming. While calculators won’t offset funeral costs directly, understanding your options can help you choose the best path forward. Trusted Company Reviews offers free financial calculators, including our Personal Loan Calculator, Debt Consolidation Calculator, and Early Loan Payoff Calculator, to help you run the numbers before committing.

Bottom Line

As the holidays are in full swing, families will gather for festivities. Conversations about older family members may come up about what plans look like after their passing. The subject of death is a difficult one, but essential. Planning now will allow you to have a much less stressful grieving process when that unfortunate time comes.