What Is The Value Of Your Debts To A Debt Collection Agency?
I had a very interesting conversation with a colleague in the debt industry this week who runs a debt management firm. In the running of his business, he deals with debt collection agencies all the time, and so gets to know a bit about their business along the way, as one would.
He was talking to a debt collection agency recently that had managed to buy £1,000,000 worth of “assets” from a well know high street bank for the princely (or more accurately, pauperly) figure of £70,000. That’s correct, just 7% of the value of the debt outstanding, and the debt collection agency has the right to collect for up to £1,000,000 – thought its’ highly unlikely they will collect anywhere near that amount.
So if you are suffering with unmanageable debts and can’t see a way out, then the best thing to do is get yourself into a debt management plan for twelve months, then start making your creditors an offer – this will be especially effective if your debt has already been passed onto a debt collection agency as they will be in profit if you offer them anything over10%…