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

In essence, buying your own debt and canceling that debt is simply paying your bills.

If you are able to buy the debt for less than you owe it is simply negotiating your bill, which debt collectors absolutely will do on an individual basis.