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 settle your debts for pennies on the dollar.

Example: 3-4 year old debt will expire in 7 years. You make an offer. They just might settle.