Knowing just when is the right time to get a consolidation loan is not always easy. Ideally, it is before you lose too much money, or, before your credit score suffers. Once your credit rate suffers, it may be impossible to consolidate debt.
If you have been the victim of rising credit card rates, with or without a good reason, it is possible that you could do better with a debt consolidation loan. Elissa Brown says that you can know when it is time,
"If you are paying interest that is higher than 1% as compared to the latest mortgage rates, you may be a decent nominee for debt consolidation through a Home Equity Line of Credit. Moreover, if you are paying more than or equal to 15% on your credit cards, then these debts can be paid off at a much lower rate."
Any debt consolidation loan has value to you only if it actually reduces your monthly payments, and also gives you a lower interest rate. Remember, too, that the longer time period only means you are paying more interest – unless you work to pay your debt loan off quickly.