The piece you are reading is about the cyclical pattern of debt sales and how now may be an excellent time to become a passive debt buyer. As it turns out, there have been more friendly terms recently because collectors seem less eager than before!
Passive buyers typically invest in debts that they expect will generate an 8% return for them on average- one reason why this might happen due to regulations for collections agencies or even active investors seeking purchases these days.
This Forbes article overview discusses some information regarding the cyclic nature of debt sale patterns and offers speculation into what has caused recent changes within those cycles.
It all comes down to what's available on the market: recently, we had strict regulation coming from various sources, which made some fear an end was near for collecting interest payments through enforcement alone; however, they also saw fewer people vying with them over who would buy their debts at reasonable prices - meaning those without.
Recently, the debt collection environment has been more friendly toward collectors. So why is that the case? It's a cyclical industry, and recently we have seen favorable legislation in place for consumers with regulation changes making it easier to collect on delinquent debts. The number of debt purchasers continues to increase, which means there are not only more potential buyers looking for assets but also those who want to purchase them at lower prices so they can resell them again later or take whatever profits they make from these transactions out as fast as possible before regulations change yet again!
Before 2009: Debt sales have been a popular way to collect payments for years example: buy low, place out and collect post dates, shelve, and sell. However, recent changes in the market are causing some confusion among those who buy and sell debts.
Between 2010-2016: The debt sale market has always been cyclic, with periods of high activity followed by long lulls between buyers and sellers. Recently, we've seen a shift in these cycles due to overbearing regulations, making it difficult to predict what will happen next.
2017-2019:
There was a cooling-off period.
2020: Cov19 Boom!
Conclusion: The cyclic nature of debt sale patterns has been a curious topic for years, and recent changes within those cycles have made it all the more confusing. Recently, we had strict regulation coming from various sources, which caused some fear an end was near for collecting interest payments through enforcement alone; however, they also saw fewer people vying with them over who would buy their debts at reasonable prices - meaning those without. It's hard to say what will happen next in this market as there are so many variables at play currently. If you're looking to learn about these trends or want your own business affected by such shifts in the future to be better prepared than others, maybe now, click here!