Investing in Unsecured Debt

[Marco Bario]

Currently, US residential homeowner equity is high, and foreclosure numbers are low. 

At the same time, there's a rise in unsecured consumer debt such as debt consolidation loans, credit cards, and retail accounts. 

I'm wondering who has experience investing in non-performing unsecured consumer debt, and how it compares to NPL real estate loan investing.

[Jay Hinrichs]

I have an old Colleague who has done this in a big way..  they bought CC debt for 2 to 5 cents on the dollar although these were already judgements.. not just the debt.

so they would stack all these judgements up.. then at 9 years start skip tracing them.. and figure out where they worked and were they banked  some how.. then hit them with garnishments just before the 10 years was up.. 

theory is after 8 to 10 years these debtors forget about it and you clean out their accounts and force them to do payment plans. 

seemed rather ruthless to me personally.