For one, it is the least expensive solution to dealing with old charge-charged off debts. For those that are already struggling financially, being able to pay only around 15% of what they owe makes more sense than the hassle to negotiate a settlement for more than 35%.
Another great reason; stop all collections and potentially being sued. No one else will have the legal authority to try and collect a debt you own. And, as an added bonus, your purchase debt will no longer be reported to the credit bureaus.
Maybe, just maybe, you want to crowdfund your debt purchase. When creating a crowdfunding campaign you can tell your audience that their donations will be used for a debt purchase, which will have a greater value and all-around impact. Who wants to give you money to settle when they can help eliminate your debt instead.
And finally, you will acquire a debt-based asset, which retains its face-value. So, if the total owed on your charged-off debt was $1000, and even though you only paid $150, you would now have a $1000 personal asset. As you know, personal assets can be used as collateral. Now that’s cool.
There are many more benefits to buying your debt. I think you should seriously consider debt purchase as the first alternative if you can’t payoff your account in full.