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Exhibit 10.2


                              CONSULTING AGREEMENT

This Agreement is made as of March 1, 2006 between Asta Funding, Inc. (the
"Company") and Herman Badillo, Esq., a non-independent director of the Company
(the "Consultant"). The Consultant has extensive experience regarding matters
related to the Company's business, and the Company seeks to benefit from the
Consultant's expertise by retaining the Consultant. The Consultant wishes to
perform consulting services for the Company. Accordingly, the Company and the
Consultant agree as follows:

   1. Services

      a. The Consultant will provide advice and consulting services to the
         Company as requested with respect to various matters related to the
         Company's business.

      b. The Consultant is an independent contractor and not an employee of the
         Company, and the relationship between the Company and the Consultant
         shall not be deemed a partnership or joint venture.

   2. Compensation

      As full consideration for the consulting services provided by the
      Consultant, the Company shall pay to the Consultant the sum of $5,000.00
      per month commencing March 1, 2006 with an initial payment of $15,000.00
      upon execution of the agreement.

   3. Competition

      The Consultant represents to the Company that the Consultant does not have
      any agreement to provide consulting services to any other party, firm, or
      company on matters relating to the scope of this Agreement, and will not
      enter into any such agreement during the term of this Agreement.

   4. Confidentiality

      a. The Company may, from time to time, in connection with work
         contemplated under this Agreement, disclose to Consultant certain
         confidential or proprietary information ("Confidential Information").
         Consultant agrees to use reasonable efforts to prevent the disclosure
         of any such Confidential Information to third parties. This obligation
         shall survive the termination of this Agreement.

      b. Confidential Information subject to paragraph 4(a) does not include
         information that (i) is or later becomes available to the public
         through no breach of this Agreement by the Consultant; (ii) is obtained
         by the Consultant from a third party who had the legal right to
         disclose the information to the Consultant; (iii) is already in the
         possession of the Consultant on the date this Agreement becomes
         effective; or (iv) is required to be disclosed by law, government
         regulation, or court order.

   5. Defense and Indemnification

      Consultant agrees to defend the Company against, and to indemnify and hold
      the Company harmless from, any claims or suits by a third party against
      the Company or any liabilities or judgments based thereon, arising from
      the Consultant's acts or omissions in the performance of this Agreement.

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   6. Term and Termination

      a. This Agreement shall be for a term of twelve (12) months, renewable
         upon reasonable terms and conditions as may be agreed upon by the
         Company and the Consultant.

      b. Termination of the Agreement under paragraph 6(a) above shall not
         affect the Company's obligation to pay for services previously
         performed by the Consultant or expenses reasonably incurred by the
         Consultant for which the Consultant is entitled to reimbursement under
         this Agreement.

   7. Miscellaneous

      a. This Agreement constitutes the entire agreement between the Company and
         the Consultant with respect to the subject matters of this Agreement,
         and this Agreement replaces any previous agreements and discussions
         between the Company and Consultant relating to the subject matters
         hereof. This Agreement may not be modified in any respect by any verbal
         statement, representation, or agreement made by any employee, officer,
         or representative of the Company, or by any written documents unless it
         is signed by an officer of the Company and by the Consultant.

      b. If any term or provision of this Agreement is determined to be invalid,
         contrary to, or prohibited under applicable laws or regulation of any
         jurisdiction, such term or provision shall not be enforced but the
         remainder of the Agreement shall be valid and enforceable.

IN WITNESS WHEREOF, the parties have executed this Agreement effective the date
first stated above.

                                          ASTA FUNDING, INC.

                                      By: /s/Gary Stern
                                          -------------------
                                          Gary Stern
                                          President & Chief Executive Officer

                                          HERMAN BADILLO, ESQ.

                                      By: /s/ Herman Badillo
                                          -------------------
                                          Herman Badillo, Esq.


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