debt

6 ways not to reset the clock on old debt

Debt can turn into zombie debt
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Debt can turn into zombie debt © WavebreakMediaMicro / Fotolia

Debt can turn into zombie debt

What do debt and milk have in common? An expiration date.

Even if you've cried over spilled milk, chances are you haven't shed too many tears over expired debt. Yet unlike the milk in your fridge, you can accidentally revive old debt.

While state laws limit the amount of time debt collectors can chase you to pay debts or force collections through judgments and garnishments, some consumer mistakes can restart that clock.

Among them: acknowledging a debt, making a partial payment or ignoring a notice that a creditor is about to sue on an old debt.

Don't want to feel the bite of zombie debt? Here are six tips you need to know.

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Debt Adviser

Don't be seduced by this debt plan

Dear Debt Adviser, I have about $50,000 of debt on credit cards. My credit rating is still high. I am thinking about a debt consolidation loan. Will that adversely affect my credit rating? -- DT Dear DT, The cliche... Read more

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