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Do debt collectors usually try to get all the debt, or just a cut down portion of it?


Damon
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I heard a while ago, that when debt collectors get into the situation, they usually take a small cut of what the debt is. So usually don't they lower the price some to help draw the person who's supposed to pay, in? 

idk, either way, do debt collectors try to collect on the whole debt?

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They will try to collect as much as they possibly can. 

The debt collectors get to purchase your debt for at a discount so they may be willing to work with you as long as they can still make their profit. It will depend on the stage of the process you are in with them on how willing they will be to negotiate with you. 

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In most cases they will be willing to accept a percentage of the debt. This is usually 75%, 50% or 30%. I have never seen it go below 30%. So say you owe a creditor $10,000 - They will ask you to pay $3,000 of that total at the lowest. 

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On 9/16/2021 at 8:13 PM, Stacey said:

In most cases they will be willing to accept a percentage of the debt. This is usually 75%, 50% or 30%. I have never seen it go below 30%. So say you owe a creditor $10,000 - They will ask you to pay $3,000 of that total at the lowest. 

I think this is true. I had a card that I lost control of when I lost my job. This was years ago and it was my first job I had ever had. They were willing to settle for like $500 something and I owed them around $1600. 

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Yeah to my knowledge they buy the debt and then try to collect themselves. I had a student loan I think that was sent to a debt collector. They would often ask for the full amount owed, but they probably paid less to get the debt, and now they want to get you to pay it all to them instead. But like James said, they will work with you because they didn't pay nearly the amount the debt is. So they can have wiggle room. 

 

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I never understood this process. They hand it over and write off the money. How are they able to do that? Do banks get bailed out of stuff like this or something while people are left for years being harassed by debt collectors? 

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