Penalties and interest - one major reason that debt accumulates is due to penalties and interest when the consumer fails to make payments on time. Penalties are charged when the bill is not paid by the due date. Hence it is advisable for the consumer to repay the credited amount immediately. These days, most credit card companies allow you to make several monthly payments online. Doing this will help save interest and pay down the debt faster.

"Over- the - limit" fees are another reason debt accumulates. This excessive amount is charged to the account when the consumer exceeds their credit limit. "Over- the - limit" fees continue to accumulate until the balance is paid below the credit limit. Know thy credit limit!

"Universal Default" - When one of the consumers fails to repay the credited amount or late payment occurs, the credit card company increases the interest rates. These increased interest rates are applied to the consumer with a late payment as well as consumers that pay regularly and on time. This methodology is known as Universal Default. Thus late or non- payment of one particular consumer can hamper the debt amount of other consumers as well. Don't be a bad apple and cause others to pay for your mistakes.

APR, or annual percentage rate also contributes to the amount of credit card debt. APR is the effective interest rate charged by the credit card company, and paid by the consumer. Annual percentage rates may be increased by the credit card companies. This increase interest can contribute to credit card debt.

New rules take effect in February 2010. If credit card companies have raised your rate or converted your rate to a variable rate because of the new rules you should contact them. Tell them to make the rated fixed (and ask for a lower rate). If they won't oblige, then take your business elsewhere.

There are ways you can stop the debt from accumulating so fast. Pay your bills on time and know the due date. Don't charge more than your credit limit, your monthly statement shows your current balance, rate and limit.

Ask the credit card company if they have a hardship program to put you on, or as was stated earlier renegotiate with your creditors. If you are really in over your head with no money, can't make the monthly payments, no 401k, no savings, then let them know if something isn't done you'll have to file for bankruptcy. Ask for a new and lower payment schedule, and lower interest rates. With the threat of bankruptcy looming, they will usually do what they can to avoid a total loss.

To summarize, credit card debt is inclusive of late payment charges, over- the - limit charges, universal default and higher annual percentage rates.

Establish a budget, curtail unnecessary spending and make a plan to pay off the credit card debt systematically.