Have you heard about zombie or phantom loans? It is referred to the debts that are old (more than 3 years) and are forgotten long away. Also, they belonged to some to some other person. For example – guardians or parents who are not alive or someone who shares the same name. In fact, the original or initial amount of the loan can grow manifolds. Such loans won’t leave you alone and haunt you every minute. Some of the most common examples of zombie loans are – overlooked students loans, medical debts and tax liens. So, before they tend to follow you to your grave, you should blow them off.
Fight the zombies, don’t run away
This is no secret that the zombie loans tarnish your credit score badly. However, when your will power is strong, you can always find a way to fight them. You might have seen horror films, where the protagonist walks through the dangers to get rid of the problems. Most of us, comment – is he or she fool or what? However, the protagonist knows that running away won’t leave him or her safe. Now, match this situation with your life where your loans haunt you like zombies. Face you fears and don’t run away. As far as zombie loans are concerned, you should talk to your debtor(s) or the credit card companies and tell about your problems.
Negotiations won’t put you behind the bars
Instead of running away from your debtors, you should face them and ask them to negotiate with you. You never know this simple yet daring first step from your side can help you deal with your outstanding loans, effectively. There are many debtors who will support you with the same. In such situations, you can also ask for debt consolidation. It can help you a great deal by combining all your individual loans into one. Moreover, most of the times, the consolidated loan amount is less than the sum of the various loans.
Fight back, don’t sit back
As far as debts are concerned, federal law of many states provides the defaulters with certain ways that can be used to stop various unscrupulous collection actions. You can always go for the same. You can also remind the collection representatives regarding the expiration of the statute of limitations, in case the loans are very old. The federal law also allows you to send a cease contact application to the collectors at any point of time. This stops them from contacting you, excluding the remainder of legal action they are likely to take.
Bankruptcy – the final weapon
When it comes to debts, bankruptcy is one of the best solutions. It is the only way that can help you in wiping out all your debts and stopping the collection agents from bothering you. There are a number of people who rely on bankruptcy. Don’t worry; it won’t tarnish your image, provided you manage to build your credit back. So, whenever, you are loaded with debts, face them and find proper solutions, instead of running way. Moreover, it can help you in eliminating the spots from your credit history and you can start fresh.