The current economic crisis has created a situation in which making money with credit card debt is an excellent business opportunity.
The following statistics illustrate the magnitude of the problem and the potential opportunities. Research firm Innovest Strategic Value Advisors reports that credit card defaults totaled $ 22.6 billion for 2007 as a whole. This amount increased to $ 76.9 billion in 2008 and to $ 93.9 billion. $ 1 billion in 2009.
However, to take advantage of such a business opportunity, you must first know where you can buy credit card debt. Three (3) main sources allow you to buy credit card debts:
1. The government
3. Loan Brokers
Let's take a look at each source.
1. The government
You can buy loans from the FDIC (Federal Deposit Insurance Company). The loans are advertised directly on their website. The information displayed includes:
~ Type of loan, for example commercial, industrial or consumer,
~ The source of the loan, ie the financial institution from which the loan originates,
~ Total nominal value of the loan,
~ Average balance of each loan,
~ Loan status, that is to say, efficient or non-performing,
~ Time period allocated to the examination,
~ Application day,
~ Date the successful bidder must pay for the loans.
It is clear that the importance of this information is obvious, but it is still there that one must analyze each loan to decide whether or not you want to submit an offer for the loan and how much. you want to place your bid for.
You can also buy loans directly from your local bank and by that, I do not speak of a local branch of a national bank. Their leaders would not have the flexibility or influence to negotiate the sale of any outstanding loans. However, with a small local bank, if you have approached your bank the right way, an offer to purchase unpaid loans that the bank had to charge might seem quite lucrative. Bill Bartmann describes, step by step, a very detailed procedure on how to contact a local representative in order to purchase his outstanding loans in his bestselling book Bailout Riches: How Can Daily Investors Earn Money? Money by buying bad loans for pennies on the dollar.
3. Loan Brokers
Buying loans from a loan broker may be more expensive, but loan brokers further segment their loans and the profiles of all the loans that they put together are more Similar. And if you're new to debt collection, your chances of success will be better if you lower your goals and do not consider broad-based loans. You will probably also find that you can make a profit faster with this approach.
The National Loan Exchange Inc. (NLEX) is an example of a loan broker. It is the "main source of web debt portfolios". However, to be able to consult one of the loans for sale, you must register on the site. You must complete a confidentiality agreement with the buyer and a verification form of the buyer. Your account will only be activated once you have provided all the required information.
NLEX has sold about $ 100 billion in debt and has a lot of experience in this area. It is a company of great reputation. Therefore, if you are thinking of earning money with credit card debt (or other forms of debt), then it is worth registering for NLEX.