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What is Zombie Debt?

By: Michael Millington


There’s a strong possibility that many Americans will face zombie debt within the next four months. With the holiday season upon us and the end of the year signaling tax season, money will be a major concern. If you have debts that have gone into collections it would pay to make sure you still owe them. If you have a debt that you don’t recognize, it might be a zombie debt. Here we will discuss what zombie debt is and why you should be aware of whether or not it exists in your life.

What is Zombie Debt?

Zombie debt is a simple concept. If you have a debt that has gone past its statute and shouldn’t be collected anymore, it’s a zombie debt. These types of debts are not required to be collected anymore, but you can still be contacted by collectors over them. As long as you know what your debt’s statute of limitation is, you’ll be in the know. Why is this a problem? Many collection agencies have a habit of buying up old debts and looking to collect on said debts. The idea is that people are often intimidated by debt collectors, even if they don’t owe debts. It can be easy to make someone believe that they owe a debt, especially if they don’t keep track of their finances.

How To Combat Zombie Debt

The  best way to combat zombie debt is to stay up to date on what you owe. Knowing what you owe is a simple matter of keeping track of your credit on a regular basis. Signing up for a service to monitor your credit can help to know what you owe from what you don’t. The worst thing to have happen to you is to have a debt collector pressure you in to paying off a debt when you don’t need to. While collecting on zombie debt can solicit some harrowing experiences, be sure to know whether you have to actually pay something off. You can always request to have a written copy of your debt statement sent to you for verification. If you believe someone is falsely accusing you of having a debt then you can legally ask them to cease all communications with you. Also, if an actual collection agency is trying to collect from you, be aware of your rights. Any collection agency in violation of the Fair Debt Collection Practices Act (FDCPA) could be subject to heavy penalties, some of which might even help against any real debt you owe. 

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