COLORADO SPRINGS — As holiday bills roll in, credit card debt is top of mind for many Americans. Unfortunately, so are the people looking to take advantage of your personal debt problems.
U.S. credit card debt reached a record high of $1.166 trillion in 2024, according to the Federal Reserve.
J. Michael Skiba, MBA, PhD, international financial crime expert and program manager at Colorado State University Global, also known as Dr. Fraud, says people looking to prey on your debt are a major concern this time of year.
“This is usually when people are getting their credit card bills in,” Dr. Fraud said. “The fun of the holidays is over, so they’re kind of a little bit stressed about their finances.”
MORE | READ HERE ABOUT DEBT RELIEF AND CREDIT REPAIR SCAMS
With many Americans struggling to pay off balances, it might be tempting to jump at an offer promising to lower your credit card debt. But be cautious of phony offers if you’re looking for debt relief.
Fraudulent debt relief companies often target people struggling with significant debt, according to the Federal Trade Commission. These schemes typically involve promises that seem “too good to be true,” Skiba said.
Here are some warning signs to watch for, according to Dr. Fraud:
- Initial Contact: Most fraudulent debt relief companies will contact you first
- Aggressive sales tactics: Scammers may pressure you into signing up quickly.
- High upfront payments: Legitimate companies might charge a small consultation fee to review your case, but scams often demand large payments upfront.
- Unrealistic promises: Some companies may guarantee high returns, such as significantly reducing your debt to an extremely low monthly payment.
There were 5,955 reports of fraud involving advance payment for credit services in the third quarter of 2024, according to the FTC. Colorado ranked first nationwide for the number of those reports submitted.
If you or someone you know has fallen victim to credit card relief fraud, you can report it to the FTC website at ReportFraud.ftc.gov or call the Consumer Response Center at 1-877-FTC-HELP (382-4357).
Wednesday rain & snow showers minimal as heavier snow moves in Thursday
An incoming storm will move into the Four Corners Region on Wednesday, with increasing wintry threats for Southern Colorado.
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