Junk debt buyers are an unfortunate part of paying off debt that is on your credit report. When debt has been going through the collection process for an extended period of time, it is often sold to a junk debt buyer as part of a package. If an account is past due for several years or several different collection agencies have tried to collect, the value of the debt declines. At that time, a junk debt buyer will but your debt and many others for one price.
The price that a junk debt buyer pays will vary depending on how long the debt has existed. If they buy it from a creditor that is charging off the account, they will pay between 11 and 16 cents for each dollar the debt is worth. If the account has been passed among a couple of collection agencies, the price sinks to between six and seven cents on the dollar. Once a debt is several years old and past the statute of limitations, they can buy it for as low as one cent on the dollar. This is where junk debt buyers make their profit. For a debt of $1,000, they can get it for as low as ten dollars.
When you are dealing with a junk debt buyer, they are likely to offer you settlements. Since they paid next to nothing to get the debt, almost anything will be a profit to them. It is common to get settlement offers between 40 and 50 percent of the total debt amount. Depending on your debt situation, that can be very appealing to you. Remember, junk debt buyers can easily profit from buying your debt and settling with you. Some common junk debt buyers you may deal with include Asset Acceptance, NCO Group, RJM Acquisitions, Asta Funding, and Arrow Financial Services.
That was some useful information on debt settlement ,I will try my best to give you some more important and updated information on debt and other financial matters in future.
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