How to Buy a Debt Portfolio

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Debt portfolios are individual pieces of debt or a group of debts that are routinely sold to third-parties to collect. The debt is normally put up for sale by large credit companies and can be purchased for pennies on the dollar. The practice is often cheap and lucrative, but not without risks, so it should be embarked upon with care.

How to Buy a Debt Portfolio

Step 1

Do your research. Although this type of investment seems foolproof, there are traps. Investigate the debt marketplace by reviewing reports from The Federal Trade Commission, which governs the industry, and, which is a resource for buyers and sellers.

Step 2

Get listed. A lot of debt transactions happen online, so register for free websites that connect debt buyers with debt sellers, like

Step 3

Advertise. Get noticed by debt sellers by creating a website that advertises your desire to buy debt. Also consider less expensive options like Google Ads, which can connect you effectively to debt sellers.

Step 4

Stay Connected. Once you've purchased debt, learn more about being a debt collector with organizations like International Association of Commercial Collectors. Industry organizations serve as a support system, source of information and important networking tool for debt collectors.