Buying debt essentially means you are becoming the lender. Instead of being the one who owes money, you own the right to collect future payments plus interest. Depending on your goals, there are three main ways to do this: 1. Government and Corporate Bonds

Modern fintech platforms allow you to lend money directly to individuals or small businesses.

This is the most common way for individuals to buy debt. You are essentially loaning money to a government or a company for a fixed period in exchange for regular interest payments.

Professional "debt buyers" purchase delinquent accounts from original creditors (like credit card companies) for a fraction of the original value.

: You choose specific loans to fund, and the platform handles the collection of principal and interest.

: You can invest in a basket of different bonds through a Mutual Fund or ETF to diversify your risk. 2. Peer-to-Peer (P2P) Lending

: Debt buyers might purchase a $1,000 debt for $40. If they collect even $100, they have made a significant profit.

AI responses may include mistakes. For financial advice, consult a professional. Learn more Buying a Treasury Marketable Security - TreasuryDirect