Image from page 713 of “Gospel Messenger, The (1921)” (1921)
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Title: Gospel Messenger, The (1921)
Year: 1921 (1920s)
Authors: Miller, D.L. (Daniel Long), 1841-1921 Frantz, Edward, 1868-1962
Publisher: Elgin, Ill. : Brethren Publishing House
Contributing Library: Brethren Historical Library and Archives
Digitizing Sponsor: LYRASIS Members and Sloan Foundation
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d in either of the last two years. The Board and the missionaries are ail joining inputting the expense at the lowest possible minimum,and yet at a rate that will not cripple too seriouslythe work. The 0,000 is, therefore, an actual emer-gency. Having already spent on the field what wehave, we cannot afford to fail now. We are too nearthe time of harvest, to become indifferent. It meanstoo much in the morale of the workers not to givethis fund quickly. We can not say that we have notthe money, for we are all enjoying too many com-forts and luxuries even yet, to make this argu-ment very convincing to the Lord, to the people, oreven to ourselves. We may have to borrow or giveuntil it hurts—but Jesus gave ALL! Let us humbly,but faithfully, give it in gratitude to him who is theGiver of all that we have and are! Study the pictures on this page and then fill outthe remittance blank on page 723 of this issue, ifyou have not already made your donation to thiswork, GENERAL MISSION BOARD.
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THREE NON-CHRISTIAN GIRLS Typical low-caste girls. Tho girls of tho school an evangelistic church, which means an apostolicchurch, in the truest sense of that term. One of the most significant signs of promise in theChurch of the Brethren, right now, is the fast growingnumber of those who are awakening to the meaningof Christian stewardship. In this year of farm lossesand factory unemployment, the conviction grows stead-ily that earthly goods and life itself are the gift ofGod. Every month sees an increasing number whohave definitely determined that not less than one-tenth of all their earnings shall be set aside for thepromotion of the Kingdom. For this there ought tobe a great chorus of thanksgiving. Since the last Thanksgiving season the church hasbeen bereaved of a number of her leaders, both youngand old. Some of these were known and loved by all,while others, no less devoted, had labored faithfullyin whatever corner of his vineyard God had set them.They have gone home to rest fr
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Debt buyers, typically private or public companies, hedge fund investors, private equity companies, or even collection agencies, often buy portfolios of charged off, past due debt from banks, credit unions, telecom, hospitals, or other credit granters.
Debt buying has increased greatly in the last few years, causing greater competition and portfolio prices to increase. Prices are expected to continue increasing, at least for another two years or so, partly due to the decline in credit card charge offs, as well as a drop since 2008 in credit card originations. This can mean smaller profit margins for bad debt buyers.
These acquired debt portfolios, representing millions of dollars in charged-off accounts, are typically large balance accounts. They are, usually, bought at a great discount.
Many debt buyers favor larger balance accounts because of the greater profit potential. Thinking similarly, most collection agencies also focus more of their collection activities on larger balance accounts. In similar fashion, the majority of collection agencies tend to prefer larger balance accounts, and they focus the lion share of their collection efforts on these. However, there are some other options to consider, that are both less competitive, and can offer greater profit margins, such as:
-Bank Demand Deposit Accounts, which are overdrawn checking/ATM accounts (DDA)
-Stafford Student Loans (federal loans for college or vocation school), and
-Payday Cash Advances
Here are some advantages:
Deeply Discounted Prices
Banks, credit unions and other institutions mostly devote most of their in house debt recovery focus on larger balance accounts, due to the greater risk involved if these should default. Because of the limits of in house debt collection staff, banks/credit unions don’t dedicate too much effort on small balance accounts. Most of the time, these can be acquired at great discounts.
Debt buyers who hire third party collection agencies to recover on these accounts can save on their internal expenses and reduce overhead significantly. The important point, though, is locating collection agencies whose specialty is small balance DDA accounts. Most collection agencies dedicate most of their attention on larger balance accounts, due to the potential for greater profits.
Because of this, banks and other credit granters typically lower their prices for small balance debts to make them more appealing to debt buyers.
Debt collection agencies with expertise in collecting smaller balance demand deposit accounts report success recovery rates in the double digits. For debt buyers, this means a great opportunity, and its not unusual to see investment returns of 50% or better!
Debtors Commonly Pay Off Smaller Balance Debts First
There is sound reasoning for debt buyers to consider smaller balance accounts. Typical debtor behavior is to pay off smaller accounts first, as this gives them a sense of accomplishment. This seems a more manageable proposition than tackling larger balance accounts, which can feel overwhelming. After successfully paying down their small balance accounts, they then tackle the larger accounts, such as credit cards, medical debt, etc.
Collection agencies with an expertise in recovering on smaller balance demand deposit accounts will produce better collection success. Bad debt buyers will also see greater profits!
At this point, there seems to be little competition for debt buyers with respect to small balance DDA accounts, cash advance loans, and small balance student loans. Because most of the debt buying attention is on larger balance accounts, this may be a excellent time to look at this market.
Because of the present poor overall economy, together with prolonged high unemployment, and increasing past due debt, banks and other institutions are experiencing ever-increasing numbers of delinquencies, defaults and charge-offs of small balance accounts.
Expect competition to greatly increase, because more investors and debt buyers will become more aware of the profits to be made. Increased competition will also mean portfolio pricing increases, which will subsequently reduce the profit margins.