The Right Time for Debt Consolidation

By:: Catherine Brock | Wed, 11/21/2007

The town marshal in High Noon went through considerable soul-searching before deciding to face a band of killers at the train station. In much the same way, you have to look closely at your debt situation to understand what actions you should take. Consolidation shouldn't be pursued lightly; it's a serious remedy for borrowers with serious debt problems. Start your self-assessment by asking the following questions:

Have you hit the maximum limits on all your credit cards?
Do you charge more than you can pay off each month?
Are you unable to pay more than the minimum payments?
Do you accept every credit offer you receive?
Are you transferring balances to avoid paying them off?
Are creditors calling you directly to ask about payment?
Are you incurring fees for missed payments?
Are any of your credit accounts in default?

A yes to any one of these questions is a red flag. A yes to more than one indicates that you're probably a strong candidate for debt consolidation. Don't let your stress level get any higher-follow the lead of High Noon's sheriff, who faced his enemies head on and managed to come out on top.

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