For anyone who owes money in Manchester, paying down those loans and debts may seem impossible. No matter how much an individual earns, the interest on the bills grow, making the balance just out of reach. Eventually, some people will be able to pay off their debts, but others will need to turn to a debt relief lawyer for help. There is nothing the matter with seeking help on overwhelming debts, and it can actually help prevent some of the negative consequences associated with unpaid bills.
One thing is for sure, when someone owes money, he or she can expect to be bothered by creditors. Though the creditor that is asking for its money may not be the original business that originally owned the debt, there is nothing the matter with selling debts.
What is so problematic, however, is that on the secondary debt market, collection agencies and other businesses can buy an individual’s debt for five cents on the dollar. What this ultimately means is that the collection agency that buys the debt at 95 percent off will get a huge windfall if a debtor finally pays his or her full debt.
For example, if a creditor purchased a $50,000 debt for $2,500, it will make a $47,500 profit when that $50,000 debt is paid in full. That kind of return is ridiculous.
For an individual struggling to pay back the money he or she owes, coming to terms with how much others profit off of their hard work can be very difficult. For some people, however, paying back a debt may be out of their reach. For them, they will need to discuss debt relief options with an attorney.
Source: The Guardian, “Occupy Wall Street activists buy $15m of Americans’ personal debt,” Adam Gabbatt, Nov. 12. 2013
