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Viliam_Bur comments on Buying Debt as Effective Altruism? - Less Wrong Discussion
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When helping people to get out of their problems, there is always a risk of perverse incentives. (Should I take a lot of debt, hide the money, and contact the debt-buying charity?) Which reasonable steps could decrease the risks?
A policy of helping each person only once in a lifetime. If they take more debt, it's their problem now.
Selecting the people to be helped randomly. For example, if we are able to help n people, we choose 2n best candidates and then help a randomly chosen half of them. This could discourage the "get into debt, they will help me" scenario. -- Okay, I am not sure about this. A stupid enough person would take the risk, precisely because they are stupid.
Mandatory participation in "elementary rationality" exercises which would teach people to not take more debt. Increases the costs of the program.
Any other ideas?
If you're going to randomize the recipients, you should also track them to see what effects the debt forgiveness has.