Buying debt

Some collection agencies are now buying debt for 4 cents on the dollar. So, if they get 12 cents on the dollar back, they’ve tripled their money.

Collection agencies generally get a fixed percentage of whatever they collect, but with large institutions jettisoning bad debt as fast as possible to get it off their books, some collection agencies are simply buying the debt outright because it’s so cheap.

Definitely a sign of the times.

  • If credit cards are the greatest source of bad debt, auto loans are a close second. You are upside down on the loan the second you drive off the dealership’s lot and it’s downhill from there. Too many people shrug off a car payment as a necessary evil.

Powered by WordPress. Designed by WooThemes