What Is Zombie Debt?

Zombie debt gets its name from the popular movie villains; it is debt that has come back to life, just like a zombie. Typically, the debt comes back to existence because it has been handed to a collections agency.

While the original lender stopped attempting to collect and stopped marking your credit score, the collections agent has a new fervor to collect. It is not uncommon to rediscover debts you owed on old utilities bills or medical bills from a previous residence once they have been handed to a collections agent. If you have dreaded zombie debt, ensure you verify the collection agent's right to collect before making a payment. 

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