Debt can live long after you think you have killed it off. Zombie debt is debt that is past the statute of limitations in your state but still hurts your credit score.
Eliminating zombie debt is not easy but also not impossible. It simply requires a bit of creativity on your part. The experts at Go Clean Credit are here to help! Here are tips to help eliminate zombie debt from your credit report once and for all.
Statute of Limitations
The first thing you should do is determine the statute of limitations for debt collection in your state. This is a crucial step that will dictate how you proceed.
Most states have limitations of seven to ten years, but this varies. Once you know the statute of limitations, you can take the next step – determining when your account last saw activity.
This is where you’ll need to be creative. It is likely that you will have to speak with one of the original creditors on your old account. If the account was charged-off and is past the statute of limitations, the collector can no longer legally demand payment.
They also can’t send further reports to the credit bureau, though you can expect them to try. This is why these types of debts are called “zombie” debt as – they can come back to hurt you.
You must proceed with caution at this point. You will have to send a letter or speak to the creditor on the phone about removing your debt. You’re doing this on the grounds that they can no longer legally collect from you. It is crucial that you remember that at no point during the exchange can you admit that the debt is yours.
Refuse to pay the debt or make any payments. The best approach is to say that you do not know anything about this debt. All you know is that they cannot collect from you due to the statute of limitations.
Be Subtle and Forward
Make your point without demanding anything or getting yourself in trouble. Sending a copy of your credit report and highlighting the debt you want to be written off is a great tactic.
This lets the creditor know that you are aware the debt that can no longer be collected. At the same time, you’re not admitting to anything or speaking with them on the phone at any point.
Credit repair companies can help you through this process. They can even speak on your behalf. Their experience will serve you well on this kind of financial issue. Zombie debt can remain on your report and hurt you more than you think.
Credit repair companies understand this and take actions to help eliminate it from your life completely and forever. You do not have to do this on your own. Credit repair companies like Go Clean Credit have your best interests in mind and are happy to help.
For more information about how to slay zombie debt, contact Go Clean Credit to get back on the right track. We have various different credit repair programs that are offere to help you overcome your unique credit situation. Real credit restoration is not a one size fits all model and we tailor your needs to the right program, but most people can start for just $99 per month.
Help is just a free phone call away or you can fill out an appointment request. Contact Go Clean Credit to schedule a free consultation today!