Managing your debt can be tricky, no matter how much or how little of it you have. You have to find the delicate balance between low monthly payments and paying down your debt.

Conventional wisdom says that you should seek lower interest rates in order to pay off your debt quicker and at a reasonable rate. This is true, but not necessarily easily done. If you have had good history with your creditor or have a good credit rating, then you might be successful in simply asking for a lower interest rate by letter, using your credit as evidence to back up your request. You might find yourself like many others in a different situation. If you have had trouble making payments or have had difficulty building good credit, most creditors would not be willing to cut you a better deal on interest rates.

If you are unable to lower your interest rates, you may try to lower your monthly payment in another way. It might be possible to apply for a debt consolidation loan that will have a lower monthly payment than your other bills combined. Another benefit of a debt consolidation loan is that you would be able to pay only the one monthly payment rather than write out several smaller checks.

Debt consolidation loans are not right for everyone, however. Depending on the lender, you may actually get a higher interest rate than what you currently pay. Even if you are able to cut your monthly payments, you would be paying on your loan for a much longer time. Also, you may have a hard time qualifying for a debt consolidation loan if you have poor credit.

One way around this is to secure your loan with something, like a house. A secured loan uses a piece of property as a guarantee for payment of the loan. One type of secured loan is a home equity loan. This allows you to use your house as collateral so the lender will give you a better interest rate. The downside of this is that you risk losing your home if you do not pay off your loan. There are also restrictions on how much they are willing to lend you, based on your situation and how much equity you have in your home.

If none of the above options can work for you, consider a debt management plan. This is a debt management solution that allows you to gain the benefit of one consolidated payment, just like the debt consolidation loan. With this plan, however, you keep your original debts and simply pay them through the debt management organization. They will be able to offer you the benefits of lower interest rates and fees on your accounts. In many cases, you are able to pay off your debts in three to five years, often at a lower monthly payment.

No matter what option you choose, you will want to check out any lender or organization you are dealing with is reputable. One great way is to check out the company with the Better Business Bureau. If they have any negative items, consider choosing a different company.

Find a debt management solution that will work for you. Talk to a credit counselor for help determining what works best for you.