What is Zombie Debt?
So, what is Zombie Debt, you ask? Contrary to popular belief, it's not the budget for a horror film. It is that debt that you thought was taken care of, but keeps on coming back, either as a haunting entry on you credit report or as a call from a phantom bill collector.
Where does Zombie Debt come from?
Not everyone has perfect credit all the time. Even if you do chances are, there is something that will come back to haunt you.
The worst kind of Zombie Debt is the one that is not yours. This will mysteriously appear on your credit report and wreak havoc until it is removed. This has been known to drain the life from your credit and cause you major heartache. For this reason, you should keep an eye on your credit report. Vigilant effort will keep the Zombies at bay.
Now, what if the debt is legitimately yours? What if it was written off by a creditor? You may think it was taken care of. But, this type of debt tends to gain new life through collection agencies. Most of these agencies have purchased your debt and are now trying to collect it. They usually have no connection to the original creditor. Sometimes, if they are left alone, they may disappear; only to be resurrected when the debt is sold again.
How do you get rid of Zombie Debt?
The best way to do away with these is to never get into that position in the first place. Pay all your bills. However, that is easier said than done in this day and age. So, if the Zombie is already out of the crypt (i.e. you have debt that has been written off, or placed with a collection agency) then your best bet is to contact the original creditor and pay them directly. You can find out who they are by an entry on your credit report, or on the collection notice. Once you have contacted the creditor and paid them, they should send you a receipt that states your debt is paid in full. You can then make a copy of this (keep the original) and send it to the collection agency that is haunting you. Lastly, ask the original creditor, and the collection agency, to remove the derogatory information from your credit report.
It may take some time and money, to beat back the Zombies, but once you have, your credit report will be given new life.
