If you are a genuine credit card holder and has been using it quite often then it is time that you know some tantalizing truth about such credit card rates and deals. You may have one or more credit cards with balances but the story remains the same in both the cases. Such balances could be anything in the range of $1,000-$10,000. However one thing is common about them. All of them carry very high interest rates. The debt consolidation plans do not carry high interest rates. In fact the basic aim of such plan is to lower your interest rates.

As you go on using the credit card you also go on paying the high interest rate and without knowing it might be paying thousands of extra dollars from your hard earned money in the process. Just compare the situation with any good debt consolidation plan and you will know the difference immediately. You even do not know that your payments are skyrocketing draining you financially.

It does not mean that there are no genuine and better interest rated credit cards in the market. But even such credit cards with the best interest rates carry interest rates higher in comparison to any debt consolidation plan. The lowest interest rate for the best credit cards could be 21% which is much higher compared to the interest you pay when enrolled under any of the debt consolidation plans.

Bottom line of all above discussions is that you can reduce your principal payable with debt consolidation plan and not with credit card payments.