Eli5 how does buying debt work? And why can’t someone just purchase their own debt for a fraction of the cost then cancel it for themselves?

Question

I’ve seen stories of individuals buying up a bunch of debt for cents on the dollar then just forgiving it. Why can’t this been done on an individual scale?

In: 4529

Answer 1

you absolutely can buy your own debt.
if you offer them a lump sum up front and they are already thinking of selling your debt and you offer above market value for your debt there is a good chance they take it. however they may say wtf why aren’t you using it to pay us lol so have a good excuse ready like your friend/family would be giving you the money for this