Actor Michael Sheen has bought £1 million (C$1.86 million) of his neighbours’ debts and written them off using £100,000 (C$186,000) of his own money.
Sheen, best known for his roles in “The Queen,” “Frost/Nixon,” “Masters of Sex” and “Good Omens,” first embarked on his “debt heist” two years ago, with the twin aims of helping 900 people in his native South Wales and spotlighting the perils of a debt industry that demands sky-high interest rates on short-term loans.
“People’s debts get put into bundles and then debt-buying companies can buy those bundles and then they can sell it on to another debt-buying company at a lower price so … the people who own the debt can sell it for less and less money,” he explained in an interview on BBC TV’s “The One Show” last week.
“I was able to set up a company and for £100,000 of my own money, buy £1 million of debt because it had come down in value like that.”
Yeah because few companies actually want to buy debt so the demand isn’t super high. If debt co-ops start up and begin to buy debt, those selling it will begin to sell it for higher prices. Not saying it won’t be cheaper than the original debt, but as soon as it starts getting purchased more frequently the market will adapt