Usually you hear of debt collectors buying up uncollected debts in order to try and make a profit for themselves. Since they buy the debt for pennies on the dollar it’s easy to make a profit even if you only get a small percentage of those debtors to pay you. Well, now there is a program called Rolling Jubilee that is out to buy the debt to help those debtors by forgiving the debt.
Sadly 30 million Americans are being chased by debt collectors. Many people think that people who have debt collectors chasing them have it happening because of poor financial decisions or lack of financial discipline. This is true in some cases. But there are also a lot of cases where the person has gotten into this by no fault of their own. A job loss or untimely medical issue. Something that just happens as part of life.
This program is modeling itself against the period of Jubilee that is based on the Old Testament Bible principle where debt is forgiven every 7 years. The group is currently buying medical debt and forgiving that debt. This allows the debtors to be released from having to worry or be hounded by debt collectors.
I think this group is doing a wonderful thing. And the fact it is focusing on medical debt is ever better since those debts are generally the ones which occur most often through no fault of the debtor itself. I hope that the recipients of this wonderful gesture take the opportunity to pay forward the gesture in some way.
The group says they are considering other types of debt. I would hope if they move forward with this plan they would tie some sort of financial education with the program. The health debt is not the same as credit card debt. Credit card debt is generally more reckless spending and not understanding wants vs needs, budgeting, etc. Buying debt to forgive it is great, but it’s only a temporary fix if the debtors do not learn to change the ways that got them into their situation they are currently in.