How do debt collectors work? I had [a post about debt](https://www.reddit.com/r/YouShouldKnow/comments/fgfal5/ysk_you_have_rights_when_it_comes_to_debt/?utm_source=share&utm_medium=ios_app&utm_name=iossmf) in another sub that went viral so I’ve been getting a lot of comments on it. There’s so many people saying that they didn’t acknowledge their debt and eventually the debt collectors stop trying.
How tf is this a viable business? From what I understand, they buy debt at a discount and charge the full debt or even more than 100% to profit. Do most people pay the debt collectors? It seems like if a lot of people don’t pay that this would not be a feasible business to ever start.. so they obviously make money some how. Am I on the right track or am I missing something?
In: Economics
Ignoring a debt collector only works if its something that’s already paid off or a debt you were never responsible for to begin with.
Just ignoring them when there is a legit claim of payment is going to tank your credit and they most likely will use legal means to get your debt.
They only give up if they know there’s no chance of getting it from you and they don’t have any other avenues to force it out of you.
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