In order to make debt plan really work you need to cut up your old high interest Credit Counseling. You should get rid of the temptation so that you cannot dig another hole for yourself. It is a quick way out of debt if you are unable to manage your credit card bills and things are getting out of your control. It helps you to prevent high interest on your bills. If you want to get lower rates on your cards then get help from a consolidation company.
Mostly companies offer programs where a consultant communicates with your debt creditors or collection agencies to reduce your interest rate and find you an affordable debt plan. You will get the following advantages with debt programs- You may pay off credit card bills at low rates of interests. Multiple credit card bills are consolidated in a single manageable payment. Unsecured Creditor or collection agencies will reduce/waive off late fees and over-the-limit charges. Unsecured Creditors/collection agencies will stop making harassing phone calls.
When you are on debt management program, you need not worry about dealing with several unsecured creditors. All you need to do is just make monthly payments to the Debt consolidation company. The company disburses your monthly payments to the creditors or collection agencies and manages all communications until you have paid your all debts.
You can also do it on your own. It can be done by transferring balances from your high interest cards to one with a lower interest rate. But while transferring your balance, do not close your other cards all at once as this will affect your credit score.
You may also take out a credit consolidation loan for paying off credit card loans. They are similar to personal loans, but have comparatively low interest rates. Moreover, it is better to avoid a consolidation loan with a higher interest rate.
Debt consolidation loans can simply be from a number of unsecured loans into another unsecured loan, but more often it involves a secured loan against an asset that serves as collateral, most commonly a house. In this case, a mortgage is secured against the house. Debt consolidation loan allows a lower interest rate than without it, because by this loan, the asset owner agrees to allow the forced sale (foreclosure) of the asset to pay back the loan. The risk to the lender is reduced so the interest rate offered is lower.