strikedebt

Get the best Credit Tips at Credit Visionary

Even though Occupy Wall Street has not been in the news a whole lot recently, a few of the offshoot organizations that sprang from the motion continue to be energetic. One such organization is Strike Financial obligation, which claims to have actually organized for more than 1,000 people to receive forgiveness on $1.1 million in medical financial obligation.

According to CNN Money, Strike Debt says that it’s focused on medical financial obligation, because that’s among the primary sources of bankruptcy for many customers. In order to make this occur, Strike Debt raised cash from benefactors, and then utilized the cash to purchase emergency room financial obligation.

How Does Buying Debt Work?

In this case, Strike Financial obligation bought financial obligation stemming from emergency clinic visits.

In the regular course of such financial obligation, it’d be turned over to collectors, who’d then attempt to get money from the customer. Because the possibility of collecting on the financial obligation is relatively reduced, a collector will buy the debt for much less than it’s worth at face value. The hospital/emergency space is pleased to get anything for the debt, since it’d need to written off otherwise. If the debt collection agency can get the debtor to pay, then it earns a profit.

CNN Cash reports that Strike Financial obligation invested $21,000 to pay off even more than $1 million in emergency clinic debt. Then, rather of attempting to get cash from the customers who owed, Strike Financial obligation simply forgave the debt.

Going forward, CNN Money reports, Strike Debt hopes to continue to raise awareness about medical debt and its impact on customers, along with pushing to assist buy and settle other debts.