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 can. it’s called offering to pay less than you owe, all at once. most debt collection agencies will gladly reduce the owed amount if you are actually going to pay it off.