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

They can. I cleaned up my credit that way, once, using the amount they could sell it for & offering a little more in exchange for its removal from my credit report. You just have to get it in writing or they won’t always follow through on their end.