How You Can Make Money From Credit Card Debt

Make money credit card debt? Sounds like a contradiction in terms, doesn't it? But instead of falling victim to the current banking crisis you can seize the business opportunity that lies within with respect to making money from credit card debt.

Credit cards are the most commonly available consumer loan. And, once upon a time, financial institutions almost thrust credit cards into people's hands because they knew they could make a big profit on these products. However, this trend is on the decline because of the sheer numbers of people who are defaulting on their payments.

Unfortunately, people generally are just not programmed to be able to handle credit cards responsibly. And so, even if individuals start off paying off their credit card balance on a monthly basis they often end up in a situation where at some time they're unable to pay off their balance. From there on it's just a slippery slope. And when this happens repeatedly the debt can mount up.

There are literally millions of people currently struggling to make credit card payments. This has created a great business opportunity where you can literally help yourself by increasing your income while helping others decrease their debt. And this is where acquiring credit card debt can actually be profitable.

It's possible to purchase delinquent credit card loans for just pennies and the dollar and then collect on these loans to make a profit. Now you may be thinking that if people were not paying their credit card debt to the bank or other company from which they initially obtained their credit card why would they pay you?

The thing is that banks don't have the flexibility to offer discounts to delinquent customers. If they did this, it would set a precedent and what could ensue could be disastrous for banks.

And so, after a certain period when a loan is not repaid, a bank writes off the loan as an uncollectable debt. Then, in order to salvage something out of this situation the bank then sells the loan at a vastly reduced rate to a debt collector. The debt collector can be a large agency and it can even be an individual.

Consequently, the debt collector has more bargaining power when it comes to dealing with loan defaulters. Often people default on their credit cards because they simply fall upon hard times. In other words, it's not about a lack of desire to pay but instead an inability to pay.

However, in many cases, these individuals are able to pay a smaller amount and in some cases can even come to an agreement with the debt collector to settle their debt for a fraction of what they owe. This creates a win-win situation. The individual gets to clear their debt and the debt collector makes a profit.

Now in this business model, although you would be purchasing the loans you don't actually have to personally go about collecting on those loans. This is something which you can outsource to a debt collection agency. And you can pay the debt collection agency on a performance or commission basis, i.e. they are paid out of what they're able to collect.

After all, calling individuals about loan repayments is definitely not something that all people enjoy doing. Plus debt collection companies usually have a system for collecting payments. And while hiring a debt collect agency may eat into your profits, it frees up your time to source the best delinquent loans so that you can increase the volume of transactions that you do.

And you can even do this on a part-time basis working from the comfort of your own home. It's an excellent opportunity to boost your personal income while helping others who may be experiencing financial hardship.

If you'd like to learn more about how you can make money buying charged-off credit card loans and helping others to reduce their credit card debt then click the link below for a FREE video where Bill Bartmann, one of world's most foremost experts on debt collection will explain this business idea in greater detail:

FREE Video: Make Money From Charged-Off Credit Card Loans