IRVINE, Calif.-Experian Consumer Direct, one of the big three credit reporting bureaus, announced recently the results of a nationwide study on consumer debt that shows consumers have increased their debt by more than 12% over the past two years.

Minimum monthly payment obligations also increased by 10% during the same time period, the bureau said. "In addition to consumers taking on substantially more debt over the past two years, their number of late payments increased nearly 20%," said Ty Taylor, president of Experian Consumer Direct. "This shows that as consumers took on more financial responsibility, they were not able to manage it effectively. However, on a positive note, our study also revealed that during the same time period, each year consumers applied for credit less often and opened fewer credit cards." It is important for consumers to understand how increases in debt can impact a credit score, Experian said. While carrying debt is not necessarily negative on its own, having balances which are close to credit limits can potentially lower a credit score. In addition, high debt levels combined with late payments can be a red flag for some lenders. By understanding how credit scores consider these elements, consumers can empower themselves to make more educated decisions when it comes to managing their debt and their credit. Card industry analysts have begun warning that the credit card industry could be in for hard times due to steadily increasing interest rates and other drains on consumer income.