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
Many people pay the debt or agree to a settlement for a portion of the debt because they don’t want to be sued, don’t want a judgment against them, want to fix their credit, or other reasons.
Also, in some situations the debt can be paid back involuntarily, through wage garnishment, bank garnishments, property levies and more.
If the debt collector is good at what they do, it can be extremely profitable.
Source: Am a debt collector
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