How to Buy Junk Debt

Junk debt is typically sold in debt portfolios and can include things, such as credit card debt and payday loan debt. Usually junk debt has been charged off by the original owner of the debt, such as a bank. Sometimes the junk debt can be past the debt collection statute of limitations, which makes the sales price lower than other junk debt portfolios. Buying junk debt can be a fairly simple process as long you have the money to pay for the junk debt portfolio.

Things You'll Need

• Internet access
• Money

Instructions

1. Sign up for an account with an organization that sells junk debt. Debt Connection, CreditMax and Chargeoff Clearinghouse are three major junk debt portfolio sellers as of February 2010.

2. Wait for account approval, which typically occurs in 24 hours. With Debt Connnection, you can view the debt portfolios that are available for sale while you wait but with the others you cannot. Instead, you have to wait for the account approval and your login details.

3. View the available junk debt portfolios for sale. Typically you will see a category, the seller, the principal amount and the states for the debt. You must be licensed to collect debt in the state that you purchase debt for. Categories include credit cards, payday loans and judgments.

4. Make a bid on the junk debt portfolio that you are interested in purchasing. You must be logged into your account to make the bid. The junk debt seller will accept the highest bid for the junk debt. The listing details will tell you when the last day for a bid is and when you have to close the deal if you win the bidding.

References

• "BusinesWeek": Prisoners of Debt; Robert Berner and Brian Grow; 2007
• About Debtconnection
• About Chargeoff Clearinghouse

Resources

• CreditMax Marketing: Resources
• Debt Connection Registration