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Can a person buy one particular consumer's collection account?
What is the best way to feasibly purchase a single debt account (i.e., my mother's personal bank loan, student loan, credit card debt, car loan, mortgage, etc.), as opposed to purchasing an entire debt portfolio? Is this even possible?
Great idea. Unfortunately, collection accounts are sold as pools or portfolios, and I know of no way for a collection agent (or anyone else) to purchase the collection accounts for a particular consumer.
If a reader has information contrary to my understanding of how the debt portfolio market operates, please comment below.
I hope this information helps you Find. Learn & Save.
Best,
Bill
Debt statistics
Debt is used to buy a home, pay for bills, buy a car, or pay for a college education. According to the NY Federal Reserve total household debt as of Q4 2023 was $17.503 trillion. Auto loan debt was $1.607 trillion and credit card was $1.129 trillion.
According to data gathered by Urban.org from a sample of credit reports, about 26% of people in the US have some kind of debt in collections. The median debt in collections is $1,739. Student loans and auto loans are common types of debt. Of people holding student debt, approximately 8% had student loans in collections. The national Auto/Retail debt delinquency rate was 4%.
Each state has its rate of delinquency and share of debts in collections. For example, in North Dakota credit card delinquency rate was 3%, and the median credit card debt was $474.
Avoiding collections isn’t always possible. A sudden loss of employment, death in the family, or sickness can lead to financial hardship. Fortunately, there are many ways to deal with debt including an aggressive payment plan, debt consolidation loan, or a negotiated settlement.
