What is Zombie Debt? Keep Debt Collectors from Raising Dead Debt to Haunt Your Credit

Modern debt is higher than it’s ever been, and with the increase in bad loans and credit card debt comes a corresponding rise in zombie debt. Many consumers find themselves hounded by debt collectors for old debts such as payday loans no credit check they thought were long gone.

What is Zombie Debt?

‘Zombie debt’ is debt that might as well be back from the grave. Old unpaid debts are often sold by credit card companies (and other lenders) to debt collection agencies for bargain prices – sometimes for as little as 1 to 3 cents for every dollar of debt that is owed. Then these collections agencies go to work, hounding creditors in ways that can be offensive, threatening, and even illegal.

Debt collectors purchased as much as $110 billion dollars in delinquent debt in 2015, for prices ranging from 1 to 12 cents per dollar. And in 2015, the U.S. Federal Trade Commission received 66,627 complaints about the practices of third party debt collection agencies for their offensive and underhanded attempts to collect on zombie debt.

Where Does Zombie Debt Come From?

Zombie debt can come from many sources:

  • unpaid debts
  • debts that were paid off years ago
  • debt that has been negotiated or settled
  • debt included in a previous bankruptcy that has been legally erased
  • loans that were never yours (i.e. bank error)
  • debt accrued by someone else via identity theft

Whatever the source, zombie debt can be irritating, frustrating, and difficult to get rid of, but there are effective ways to deal with zombie debt.

How to Get Rid of Zombie Debt

First and foremost, don’t acknowledge the debt to collectors. Even admitting the debt was yours can be enough for collectors to reactivate old debts – which not only means the debt will have to be paid (no matter how old it is) but can also damage a good credit score.

Check the statute of limitations on debt. Debts cannot be pursued after a certain amount of time has elapsed. The statute of limitations will differ from state to state, but the statute that applies is the one for the state in which the creditor presently lives.

Debts disappear off of credit ratings after 7 years (10 years if bankruptcy is declared), but zombie debt collectors can reopen old debts and sometimes even falsify the dates on which a payment was last made on the debt, extending its life. This is illegal, as is threatening to sue or suing for a debt that has expired according to the statute of limitations.

Don’t agree to anything unless the collection agency is willing to make the agreement in writing. Zombie debt collectors are famous for offering deals and settlements, only to pursue lawsuits once they have a payment that reopens the debt.

Some debt experts even recommend hanging up on zombie debt collectors – especially if the debt is over 7 years old, has already been paid, or is due to identity theft. Certainly, if debt collectors become offensive, there’s no reason to stay on the phone and take the abuse over a debt that has already been paid off or legally erased.

How to Get a Low Bank Equity Home Loan Mortgage Rate

A low interest bank equity home loan mortgage requires a good or excellent credit score. Homeowners or first-time home buyers with a history of adverse credit can still strive towards a better credit score for the lowest mortgage rate, but they’ll need more equity or a larger house deposit. Although all credit transgressions will continue to show on a credit report for a period of 7 years (10 years in the case of chapter 7 bankruptcy), there are repair methods that can be used to achieve a higher credit score.

Too Many Applications for a Bank Equity Home Loan Mortgage

One of the more common mistakes homeowners make is applying for the best fixed rate mortgages without making sure that they meet the eligibility criteria. Each credit search will be seen by potential creditors for a period of 12-months. Too many searches could lead to rejection because potential lenders associate this with financial struggles and eventual default. Homeowners are advised to use a professional mortgage broker or a comparison site, such as moneysupermarket.com, to pinpoint low rate mortgages.

Correct Credit Report Errors for the Best Fixed Rate Mortgages

The first step towards getting the lowest bank equity home loan mortgage is making sure that the information held by credit reference agencies – Experian, Equifax and TransUnion – is completely accurate. Consumers are legally entitled to a free copy of their credit report each year by telephoning (877) 322 8228 or from annualcreditreport.com. Should a copy have already been requested, they are available for about $9 each. Each report will also provide guidelines regarding how to dispute erroneous information. Bad data can be disputed either personally or with the help of a credit repair attorney.

An Improved Credit Rating for a Bank Equity Home Loan Mortgage

  • Avoid using more than 30% of the available credit limit on a card each month. Up to 30% of a FICO score is made up of the amount of money owed to creditors. Pay back debt in-full and on-time each month for a better credit score.
  • Don’t perform a balance transfer from a high to a low limit credit card because it gives the impression that a greater percentage of that person’s total credit has been used up.
  • For the exact same reason, don’t close down old credit and store cards. Instead of allowing them to gather dust, make a purchases on the card each month.
  • Use personal savings to reduce debt before applying for a low rate mortgage.

How to Get the Lowest Mortgage Rate

The best bank equity home loan mortgages will only be offered to customers who are least likely to default on the agreement. Although the lowest rates won’t be offered to everyone, investing a little time to get a better credit score can and will save money. An improved credit rating, especially when combined with a higher house deposit and a stable job, leads to a reduction in monthly mortgage payments. Always apply selectively for low APR mortgage loans as it is imperative that the eligibility criteria are complied with.

Small Business Loans-the Way to Fund Your Dream Venture!

In the existing fast paced competitive scenario, where a new business or organization is surfacing up almost every day, getting a perfect key to unlock the aspirations and growth you have always wished for your business is truly challenging and pain staking when it comes to the finances needed for setting up and running the same in real.

A business loan is which comes to your rescue then, enabling you means to plan your finances properly and in a more planned manner. This can be a pertinent druthers for you to outset, extend and surmount with your business plans easily and quickly. Small business loans sometimes little challenging to get, makes one feel getting the funds like trying to fit a camel in the eye of a needle! Acquiring the right preparation and just the right documentation can make the task become easy, quick and hassle-free.

Among the array of options one can avail while applying for a business loans, choose the one as per your need and get easy funds at your disposal to expand, grow or even start the business of your dreams. Each loan procedure encompassing eligibility requirement and unique application, there are some documents needed which are inevitable necessities for you to get the funds as per the applied amounts.

The key to getting a small business loan being preparation and the right documents, that persuade the lender, to give you the loan. The documents one needs include:

A statement of your financial status which includes a list of your personal assets and debts.

Past business tax returns, for those who have a business running already.

A credit rating report which depicts your past history about loan repayment and makes the lender contended while lending the loan for your business.

On the other hand the documents you need while applying for a small business bank loan include;

A loan agreement,

A promissory note,

Some kind of personal guarantee.

So, why wait more forget and erase all hassles about finances and stop making your business suffer more, get easy funds at your disposal with small business loans, giving you the freedom and aid to start, grow and succeed with your business plans and ventures.

With small business loans getting the operating capital for business start up or to finance an expansion in an already running business was never so easy and hassle-free, avail one today to see your expectations turn to real!