The mismanagement of plastic credit cards is the main reason people fall into credit cards debt. This type of debt, known as unsecured consumer debt, is no doubt familiar to most Americans. Unfortunately, our love of plastic has led to a nation of debtors, many people looking for credit card debt consolidation and bad credit is rapidly becoming a way of life for those who are incapable of managing their credit responsibly.

While plastic cards can be very worth while, they have been known to encourage both unaccountable spending habits and a reduction in financial constraint. Many argue that credit cards are more trouble than they are worth. Yet, millions of people around the world still use them. Many then make their position worse by opting to take out credit card debt consolidation relief when they owe too much and can't make the payments on credit cards.

Credit cards debt occurs when a client of a credit card company buys something through their card. Because quite a few people often thinks of the credit card as a bottomless pit of money, the client does not allow for wise planning and attention to budget that stems from using only cash to make purchases. Things get even worse for the customer when monthly bills aren't paid on time.

The level of debt increases at a rapid rate due to the interest and costly penalties often affiliated with late credit card payments. Credit card companies often charge a late fee every time a client fails to pay on time. This fee can vary, but it is usually anywhere from $15 to $30 per month. It is no surprise that the bulk of these companies' profits stem from the late charges and interest accrued by card owners. Simply put, creditors make millions of dollars from their clients' inability to pay debts in a timely fashion. Sometimes the only way to break the cycle is for the client to get a credit card debt consolidation.

Nearly as damaging to credit card customers is the consequence these "failures to pay" have on credit ratings. Credit agencies are right away notified when a card holder has defaulted or missed a payment. The conclusion is that the consumer's record is marked. Bad credit is an awful thing to have, as people's credit scores suffer and make it very difficult to be approved for a loan to buy a house or car.

Consequently, if a customer continues to default, other creditors may advance their interest rates for that customer, even if the fellow creature has paid all of the debts to that particular company. This is known as sweeping default and only makes the circumstance worse for someone who is struggling to get out of debt. Bad credit is contagious.

The popularity of plastic is soaring and its victims are becoming younger, in spite of growing awareness of the pitfalls of credit. Today's college student can expect to graduate with several thousand owed in credit cards debt and will more than likely be forced to take our more credit card debt consolidation, thus continuing the cycle. Budgeting and the responsible use of credit are the keys to avoiding credit card debt and its attendant bad credit rating.