What Zombie Debt Is and How to Dodge It

Shows like The Walking Dead may show us the horror of a zombie apocalypse, but the hit franchise neglected to include the scariest type of undead terror: zombie debt. Zombie debt can affect everyone, not only those with consolidation loans for bad credit. This article will cover everything you need to know about combatting zombie debt—no decapitations or brain splattering required.

 

What is zombie debt?

Zombie debt is defined as debt that has fallen off your credit report, has expired, or you no longer owe, but that a debt collector is attempting to resurrect it and make you pay anyway. It generally refers to debt that’s over 3 years old.

 

How zombie debt works

Zombie debt is usually purchased from the original creditor or a debt collection agency. The new collector then turns around and tries to make a profit on it by convincing you that you need to pay. These collectors can resort to nasty tactics, similar to your ex would, like calling you relentlessly. 

 

Types of zombie debt

Common types of zombie debt include:

 

  • Debts that have fallen off your report: Unpaid debts fall off your credit report after 7 years. But debt collectors can still attempt to hound you for them. 
  • Settled debts: These are debts that you and your creditor have agreed to settle. An example of this would be bankruptcy.
  • Debts beyond statute of limitations: Even if you didn’t repay your debt, collectors aren’t allowed to go after you after a certain period of time. This period of time can vary depending on the type of debt you have and where you live. 
  • Identity theft debts: Collectors can attempt to make you pay debts that are a result of you being a victim of identity theft. 

 

4 ways to deal with zombie debt 

Here are 4 different ways you can claim victory over these dastardly demons. 

 

  1. Understand your undead foe

The first step in fighting your zombie debt is to understand what exactly the collector is claiming you owe. Be sure not to make any payments on debts you don’t understand. Doing so can bring your old debt back to life. 

 

  1. Arm yourself with info 

Once you’ve determined that the debt they’re claiming you owe isn’t real, it’s time to go through old records, such as bank statements, to collect as much information as you can to prove that you don’t owe them a dime. 

  1. Obtain debt validation letter

A debt validation letter can clue you in on the information the collector has about your debt, including who the original creditor was and the amount of debt. It can help you prove that the debt is dead in the water. 

 

  1. Be proactive in defeating the monster 

It’s better to attack an unsuspecting zombie rather than wait for it to attack you. Similarly, it’s better to be proactive about resolving your zombie debt. If you’ve already paid your debt, write a letter to the collector and demand that they stop bothering you. They’ll have to abide due to the Fair Debt Collections Practices Act. 

 

Zombies might be ruthless savages, but they aren’t undefeatable. Same with dodgy debt collectors. By understanding the debt they’re claiming, collecting necessary information, obtaining a debt validation letter, and writing a letter to the collector, you’ll be able to send your zombie debt back to the grave for good.   

 

By Stefanie Gordon

Stefanie Gordon is a content strategist with over a decade of professional writing experience. She is a former financial journalist who has spent the last several years working in digital marketing. She specializes in content strategy and creation for large and small businesses in finance and technology.