The Secondary Debt market! Interesting Indeed

http://www.theguardian.com/world/2013/no...sonal-debt

A group of Occupy Wall Street activists has bought almost $15m of Americans' personal debt over the last year as part of the Rolling Jubilee project to help people pay off their outstanding credit.

Rolling Jubilee, set up by Occupy's Strike Debt group following the street protests that swept the world in 2011, launched on 15 November 2012. The group purchases personal debt cheaply from banks before "abolishing" it, freeing individuals from their bills.

By purchasing the debt at knockdown prices the group has managed to free $14,734,569.87 of personal debt, mainly medical debt, spending only $400,000.

"We thought that the ratio would be about 20 to 1," said Andrew Ross, a member of Strike Debt and professor of social and cultural analysis at New York University. He said the team initially envisaged raising $50,000, which would have enabled it to buy $1m in debt.

Quote:The group is able to buy debt so cheaply due to the nature of the "secondary debt market". If individuals consistently fail to pay bills from credit cards, loans, or medical insurance the bank or lender that issued the funds will eventually cut its losses by selling that debt to a third party. These sales occur for a fraction of the debt’s true values – typically for five cents on the dollar – and debt-buying companies then attempt to recoup the debt from the individual debtor and thus make a profit.

very true Soca but what I wanted to highlight was the work Occupy has done.

tremendous approach which exposes great potential for the people to solve much of their financial problems by the collective example

maps buy some bad debt

you mean you are not interested in solving the great american insolvent  problem chairs....you don't care about the people...but you love Obama?

interesting ::LOL:: ::LOL:: ::LOL:: ::LOL::

what the heck is wrong with obama

Soca I know the situation well enough.  I have explained it here often

I know the banks do all kinda things with debt...like their own billions on dodgy projects and when they fail take it to central bank that covers them and then charges it the national debt which is paid at interest by the people through taxes.

the big international banks..indeed all of them for the are all the same owners...they never lose.  the taxpayer ends up paying for all of it in the end.

but I ma impressed with Occupy for there is a benefit for those people who get sick and bankrupt from medical bills.  that is the type of debt Occupy has targeted...in the process exposing to the people, teaching how the debt market works..which will help those with other kind of debt in dealing with their debtors...

Occupy is not buying with commecial debt by the people..only teaching or helping them in their onw dealings with problems they themselves have caused

Quote:what the heck is wrong with obama

well...as you have such a great and emotional interest and connection to him tell us what is right about his as pres.

I have long ago ranted on and on about him laying my case.  now you tell us what is right about him

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