The Australian debt purchasing market has grown significantly since 2000, as companies like Credit Corp purchase debt ledgers from Australian financial institutions, then attempt to recover defaulted loans.CEO of Credit Corp, Geoff Lucas, said the vast majority of accounts purchased are renters with credit cards and personal loans."It is our view that we are dealing with customers rather than debtors - that changes the nature of the engagement and is critical in ensuring we maintain a very strong relationship with them, in achieving a financial outcome beneficial to both parties."Lucas said a deteriorating credit environment with increased write offs, caused by an increase in interest rates, can potentially increase volume in the supply of portfolios."As interest rates start to increase, we have seen instances where consumers prioritise payments perhaps away from their personal loans and credit cards, focusing more on mortgage payments."Credit cards and personal loans may then go into default, thereby increasing the chances of their account being sold to us."Credit Corp has a $160 million debt facility, of which at balance date $125 million had been utilised, with Lucas adding $70 million of this debt has been fixed at 6.45 per cent out to January 2009, giving the company, "a significant advantage for future acquisitions".Lucas adds there are significant barriers to entry to the market, saying Credit Corp had a superior ability to extract sustainable economic return from their portfolios, due to a strong analytical database which allows a high degree of clarity and certainty when pricing prospective debt portfolios.