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.