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
If you owe me $10k, but you’re not making payments and I think you’ll never pay and have nothing I can possess to pay the debt I have a few options.
1 – just accept the loss
2 – negotiate a lower payment (basically what you’re asking about self cancellation)
3 – hire a thumb-breaker (collection agency) to try and force you to pay.
4 – Someone might think they can get money out of you and offer maybe $5k to me and take over the $10k debt. If they can get more than that, even if less than the total owed, they make money, and I’ve cut my loss.
The only reason people would take on debt just to cancel it would be out of kindness, or as part of a consolidated debt portfolio where individual bad debts are uneconomic to chase.
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