Of late, incidence of credit card fraud has escalated and reached alarming heights. The ongoing recession has left consumers cash strapped and knee deep in debt. In an attempt to get out of credit card debts, debtors are trying their hands on all possible debt relief options. Out of desperation, many fall prey to phishing scams and crooks who are scot-free and doing brisk business. The BBB or Better Business Bureau has reported that majority of the complaints registered are related to debt relief and credit counseling.

Reports suggest that credit card consolidation is a debt help option that majority of the debtors are opting for. Consumers who are unable to solve their problems related to credit card debts on their own take refuge of a debt help company.

If the debt relief option is debt consolidation, debts of the consumer are consolidated into a single debt account. When debtors sign up for credit card consolidation programs, they are required to furnish details of their debt accounts and the interest rates attracted by their individual debt accounts. There are several instances when credit card consolidation companies offer their services through mails, phone calls etc. Often these are traps and if debtors are not able to differentiate between the scammers and the authentic debt consolidation companies, they are in for trouble. This has left many debtors very perplexed and in dismay. This not only holds true for debt consolidation companies but it can be any debt relief agency offering help and beckoning to make you debt free.

If debtors hit upon the right credit card consolidation company, it can help them to get out of debt. In debt consolidation, the company helping debtors, negotiate with the creditors and convince them to reduce the current rate of interest and the monthly payments. The debtor gets a new repayment plan and is expected to make payments as per the new repayment schedule. This process of debt relief also has a positive impact on the debtor’s credit rating.

The scammers sound very convincing when they offer their services to help debtors get out of debt. In the process they extract information about the credit cards and in some cases are successful in getting the SSN or the Social Security Number divulged from debtors who are confused and vulnerable. This eventually leads to identity theft.

The Better Business Bureau has suggested that prior to hiring the services of a debt relief company, it is very important to judge the credibility of the debt help/credit card consolidation company being hired.

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