Delinquent Consumer Debt Portfolios

 

Delinquent consumer debt is money owed when an individual uses credit to buy products or services, then defaults on paying back the bank or company that extended the credit.

The term “delinquent debt” or “bad debt” refers to debt that is more than 30 days over due. Debt that is less than 30 days overdue is not categorized as delinquent. Delinquent debt can arise from retailers, service providers, financial institutions, hospitals, and any other business that allows its customers to pay using credit.

Associates Financial Solutions can give you the opportunity to sell those debts for immediate cash. We represent large institutional funding sources that purchase portfolios of delinquent debt ranging from 90 days to several years past due. These funding sources will buy delinquent accounts even if you have made previous attempts at collection.

 

Performance Levels

Performing debt: This debt is no more than 30 days overdue.
Sub-performing debt: This debt is from 30 to 120 days delinquent. These accounts are labor-intensive and expensive for companies to maintain.
Non-performing debt: this debt is more than 120 days delinquent. Companies generally write these debts off after 180 days.

 

Benefits of Selling bad debt:

Provides immediate cash for the business. The business no longer has to wait to collect a percentage of the accounts when –and if- they are paid.
Allows the business to turn a liability into an asset
Removes the collection burden from the business’ shoulders.
Relieves the business from the concern that they will alienate their customers through in-house collection efforts.