There are two very common and recent debt scams affecting thousands of Americans. These scams will be examined for how they work and how you can avoid them. The key to any scam is to be hyper vigilant in your research regarding any company out there.

Fake Debt Collectors:
Fake debt collectors are all too common in the United States. These thieves work in the identity theft arena. They look for an easy mark, usually an older individual or one that has recently looked for debt relief online. Some of these fakes go through mail to see who is receiving debt relief information. They may send out a letter stating that they can help with your debt. You fill it out and send it in for more information. Suddenly you are getting a call from a fake debt collector about an outstanding bill. All they are doing is trying to get you to give them personal information.

When someone owes money on a bill being sent to collections it scares them. They may feel out of control and thus offer information they normally wouldn’t. You should never give out information to anyone who calls you until you confirm who they are. In other words, call the “debt collector” back after a Better Business Bureau search and online reviews. A scam in the fake debt collector arena will appear online as a warning by those already scammed.

Debt Relief Scam:
The debt relief scam is much different from the identity theft scenario above. This second most common occurrence has everything to do with high fees and no action. You decide you need help with your debts, so you approach a company that says they can consolidate your debts and stop the debt collectors from bothering you. However, they want 15 percent in a fee. They ask this fee to be paid before they start work. It is now six months later and your debts are still outstanding, the company won’t return your calls, and they took your money.

Unfortunately, 3500 debt scams of this nature have been turned into the Better Business Bureau in recent years. The only way to avoid them is to check with the BBB to ensure the debt relief company you have chosen does not have a complaint. Second, you can ask to see proof of what they can do in writing before you give them a portion of the fee. You will not agree to pay the entire fee until you have at least one debt cleared. It gives the company an incentive to work on your behalf. If they refuse such an offer take your business elsewhere because they are supposed to be working for you.