How to Get Out of Debt – Free Help

Totally free help and honest answers from the Get Out of Debt Guy – Steve Rhode

Debt Collectors Buying Bad Debts Make a Killing in a Bad Economy

Posted by Get Out Of Debt Hound Ask me your question.

Click on the star rating below to rate this article. (No Ratings Yet)  Loading ...

Oh what a wonderful time to be a debt collector and to buy bad debt. You’ve got to love a system where the very banks that are selling bad debts, finance it for the debt collector to buy for less than four cents on the dollar.

All they have to do is get people to promise to pay more than eight cents on the dollar back and they are way ahead. I know, if only it were that easy.

With the economy tanking, banks hoarding cash and more consumers getting deeper into hock, collectors of defaulted credit cards such as Encore Capital Group are finding opportunities for growth.

“We’re … in the perfect storm of a higher supply (of charged-off credit cards), lower demand and pricing going down,” said Paul Grinberg, chief financial officer.

For the nine months ended Sept. 30, Encore purchased $5 billion in charged-off credit cards at an average 3.4 cents on the dollar, investing about $166 million.

The cash to buy the defaulted portfolios comes from a $335 million line of credit provided by a syndicate led by JPMorgan Chase, and includes some of the same banks that owned the debt, including BofA and Citibank.

The business comes down to collecting from people experiencing tough times. The goal is not to intimidate, but to get debtors to agree to some type of repayment schedule.

Click Here for totally free debt help, advice and answers.

Source: Debt Collectors Charge Ahead in Faltering Economy

Sphere: Related Content

Other Related Articles to Read

• Beware Of Zombie Debt Collectors
• Credit Card Companies Are Coming For You. Protect the Wife and Children.
• Stop Debt Collectors – 100 Pages of Good Advice
• So You Have to Use Your Credit Card In An Emergency – Personal Finnance Bloggers Question of The Week
• Next big worry: Credit cards

What do you think this person should do? Do you have a message of encouragement or support you'd like to leave? Leave you comments and advice below.

 

Do You Have a Get Out of Debt Question You Want to Ask?

I'm happy to answer any question you have about how to get out of debt, as honestly as possible by sharing with you my experience and truth that I learned from helping thousands of people to get out of debt. Don't be shy, if you need help, ask now, click here.

And if you want to follow the latest questions and answers, just subscribe to my site RSS feed or get the email newsletter for free.

Powered by Wordpress | WP Premium theme by WP Remix
Copyright 2007. How to Get Out of Debt – Free Help. All rights reserved

• Home
• Ask A Question
• Confidential Tip Form
• Forum
• Terms
• 6 Ways You Can Help
• Debt Consolidation

Please Let Me Help You For Free!

Just tell me your situation, click here, and I'll gladly help you for free. My offer is simple, just tell me your situation and I'll help you with advice and a plan, absolutely free. You don't even have to tell me your email or anything like that. I'm offering you anonymous free help.

Why? I've been deep in debt, I've walked in your shoes, I know what it is like. I just want to help. Click here, and I'll gladly help you for free.

If you are looking for professional interaction into your situation then you should click on the graphic below.

Close Message