While most credit cards are cutting people's limits, PayPal is moving in the opposite direction and offering a new quasi-credit card. Clark hopes PayPal goes on to become a vigorous 3rd player in the market so they can bust open the Visa/MasterCard cartel.

Meanwhile, the number of people dealing with debt collectors is growing and growing. While many debt collectors do their jobs responsibly, others abuse the law and give the industry a bad name. The bad ones may try to collect money beyond the statue of limitations, which typically is 3-6 years in most states on most kinds of debt.

What should you do if you're confronted by a collector alleging you owe on a "zombie" debt? If you receive the 5-day letter -- so called because it gives you 5 days to respond -- you have a couple of options:

If you don't owe on the debt because it's past the statue of limitations, write them back via certified mail and tell them that. If the debt is still valid but you can't pay, write them back via certified mail and say that. In the latter instance, you can also tell them to stop contacting you further. Under the law, they are required to obey.

The only further contact you should hear from them is if they're suing you over the debt. In fact, one of the worst practices out there is when a debt collector knowingly sues you on an expired debt. If you don't show up in court, they get a default judgment against you -- even though there was no legal way you would have been required to pay.