posted on Nov, 9 2012 @ 07:06 PM
reply to post by MystikMushroom
When you're in debt to someone, say a bank or a hospital or what have you, and you fail to pay that debt in a timely manner the entity you owe that
debt to (bank, hospital, whatever) sells that debt to someone else. As if it were a commodity. The 'debt' is sold because the bank/hospital/whatever
realizes it will make more money selling your debt than it will trying to go after you for that debt through phonecalls, letters or lawyers.
This is why debt is a big business in America.
Once that debt is sold to a debt collector you no longer owe anything to the bank/hospital/whatever but to the debt collector. The debt collector
likely bought your $10,000 debt for $500 and is willing to 'generously' lower the amount you owe to $5,000. Thereby making a 1000% profit. Debt
collectors employ people with the specific purpose to hound you, to threaten you and to call you again and again and again to order for you to
'resolve' your debt. Debt collectors can also sell the debt they've bought to other debt collectors for some profit, say...$1000 for the $500 they
Eventually, so long as no action is made on your part to resolve the debt, it will be 'erased' after seven years. Which is why your debt can be sold
cheaply between entities for so cheap. However, your name isn't associated with the debt when it's sold, only account numbers and amounts. Once the
debt has been bought then your contact information is sold with it.
Between an over-spending ex-wife and a period of unemployment I've become all too familiar with debt, so if you have any questions please feel free