'Zombie debt': When collectors haunt you

After Kim Mullen filed for bankruptcy in 1993, she cut up all her credit cards in her lawyer's office. Since then, the Levittown resident has managed to obtain a good credit rating.

But in December, a debt collector contacted her, saying she had an unpaid card balance of $5,655 from 1992. With interest, the letter claimed, the debt had grown to $19,400.

As old debt seems to rise from the dead, it's taken on a name -- "zombie debt." And in recent years, more and more such debt is coming back to haunt consumers, according to their advocates and lawyers who specialize in debt.

Mullen, 46, says she doesn't remember the debt and has challenged it. Others who have received such notices say the purported old debts are a result of identity theft.

Credit crackdown gets personal

People late paying their mobile phone bills or who forget to settle even a minor credit card payment are being blacklisted for credit cards and loans as lenders take a hardline approach to protect themselves from bad debts.

Lenders are securing access to ever more personal data when deciding whether to offer credit cards and loans, and lapses that would have had little effect on a credit rating a year ago are being used to deny credit.

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(ARA) - There are a lot of numbers that are important in life, but none quite as influential as your credit score. Having a high credit rating can give you better interest rates on credit cards, car loans and even your mortgage. On the opposite side, a poor credit rating can make many aspects of living difficult. It's important to check your credit score to learn where you stand.By viewing your credit activity on a regular basis you can manage any detrimental items that need to be removed or fixed. These actions will create a better rating under your name and benefit you throughout your life. The easiest and fastest way to do this is by going online.GoFreeCredit.com is an easy way to check your credit from all three major credit bureaus. You can try this service free for 30 days to monitor any activity and make changes in your life so that your score increases.


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