Snapchat CEO Evan Spiegel and his wife Miranda Kerr facilitated the erasure of $550 million (₹4,600 crore) in medical debt for 261,000 Californians.
The initiative uses a distressed debt arbitrage model, purchasing non-performing loans on the secondary market at a fraction of their face value.
The financial mechanism creates a 100x multiplier, meaning every $10 of capital injected forgives roughly $1,000 of debt.
Erasing medical debt bypasses predatory collection agencies and instantly rehabilitates the credit scores of vulnerable, low-income families.
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