Why debt collectors are a hot buy now

[TwixVoy]

"It’s a sad commentary on our times when the strongest growth in the financial sector is coming from companies that specialize in debt collection. But what do we expect when wages are flat, inflation is rising, mortgages aren’t being paid and people are forced to decide being paying their Best Buy bills or buying gasoline for the commute to work.

We’ve got something like 6,100 debt collection companies in the United States now, and they are rapidly adding more Americans to their speed-dial lists. In the past year, companies in the industry have bought something like $140 billion worth of delinquent debts, which is more than double the amount they bought as recently as eight years ago. "


http://blogs.moneycentral.msn.com/topstocks/archive/2008/05/22/scourge-of-new-era-debt-collectors.aspx


First two paragraphs say it all. What a sad state of affairs.

[BOSSHOG]

1. A belated welcome to DU

and on a similar note as your post. I read a newspaper article about how bad economic times result in an increase in people calling the police to report crimes for reward money. No doubt the republican knucklehead machine can turn this into a positive for their cause.

[OwnedByFerrets]

2. Another of the fastest growing

sections of the economy are the companies who HELP you get out from under your debt. My wife just got a job with one of them (thank goodness she is working now) and business is booming. And she feels good about her job because she is helping people.

[Parche]

3. Debt Collectors

I think of them as worse then scum of the earth...................

:grr: :grr: :hi:

[treestar]

4. Makes sense if people have money to pay the debt

If they don't, the debt collector's job isn't remunerative.