How is Debt Purchased

[sjwings3249]

Hello all,

Would anyone be able to recommend a service or site that explains exactly how the average person buys a debt portfolio?

I know its all second market jazz but I can't find anything about it really.

Thanks.

[burtonridr]

All debt portfolios are sold on the black market..... Lol jk


I have no idea, have you tried calling a bank? They are the ones that usually sell debt portfolios. I'm sure if you work hard enough you can get in touch with someone high enough up that can give you a point in the right direction.

Another option would be to start calling companies in your area and start competing with other debt collectors. Offer to pay them $0.40 on the dollar per debt, when the company they currently use only pays them $0.30 on the dollar for debt.

Good luck!

[Gaulkin]

Do you mean mortgage backed securities because that boom is way over.

[sjwings3249]

No I mean like charged off credit card debt and the such.

[Gaulkin]

Why not just buy Mastercard stock, you get to buy debt without the risk.

[JLeezer]

Why not just buy Mastercard stock, you get to buy debt without the risk.

Or Berkshire Hathaway...then you get American Express

[RLorenzen]

Don't forget Visa guys

[MattV]

It depends on whose debt you wanna buy. If it's a national debt for example, there're plenty banks that offer it as nicely packed product. IF you wanna buy subprime debt, well, I have no idea, but that's a lot more volatile since the governments seems to like to bail off lowsy investors.

[Aletheides]

I remember seeing a company auctioning off bad debts a long time ago when I was searching for police auctions, but I can't remember anything else. These are bad debts, mind you. You would have to collect.

[jasaunders]

Ok, well a few of you are wrong. VISA and Mastercard are simply processing companies. VISA and Mastercard credit cards are issued by banks. VISA and MC only get a small transaction fee from purchases and are not responsible in any way for the money charged or payment on credit cards. This is the responsibility of the issuing banks.

AMEX and Discover on the other hand are the issuers of the card.

However, if you take a look at the market, you will notice that VISA and MC are up considerably, while AMEX, Discover, and financial insititutions are down considerably.

[sjwings3249]

What I am trying to figure out though is what service would I have to use in order to purchase debt portfolios that I could collect on. I have searched the internet high and low and have found no hard information on the subject.

The only thing that may help, "Starting a Collection Agency" by Michelle Dunn is like $90.00 and with the mixed reviews about its contents, I am not sure I want to chance paying for something that doesnt have what I need.

Some sites I read make it sound like you have to call specific businesses and see if they have any debt they wanna sell, while others make it sound like there is a huge database, an ebay of portfolios if you will.

[entrepresooner]

Check Bid4Assets they auction off everything under the sun. Under the "Finacial Instruments" section you can occasionally find debt portfolios up for auction.

I usually check the site at least once a week to see what if there are any opportunities.