Well, it's time to do something about your debt. You are tired of the sleepless nights, the harassing phone calls, and the generally depressing cloud hanging over your head. So after careful thought, you decide to get debt consolidation. But is debt consolidation really for you? How would you know? Many of us are the "take the bull by the horns" type and don't do well with third parties working for us as we feel they are just taking our money. And you know that with debt consolidation, they probably are taking your money. That is even more reason why you need to carefully consider if debt consolidation will really fit you. The first task at hand in determining if debt consolidation fits you is to study all the facts around the area you are venturing into. Debt counseling, credit counseling, and debt consolidation are like the American Wild West in the credit arena. In other words, picture yourself at a card table with a bunch of unshaven renegade outlaws and all of them are out to get your money either fairly or underhandedly.

The first thing to understand when seeking a debt consolidation on your credit cards or other unsecured debt is that with a debt consolidation this debt will transfer to secured debt. Let's face it. You approach the debt consolidation company as a high risk person who had problems with unsecured debt. There is no way they are going to get you unsecured debt. If a debt consolidation loan is advertised as unsecured then you had better check it out because usually debt consolidation is secured. By secured we mean that you will have to put your primary residence up as collateral or security for the loan in the case of default and you cannot pay. This means you would lose your house. Are you willing to take this risk? Is this for you?

Keep this one point in the back of your mind: credit card debt is unsecured. That means that no matter how much they harass you, they cannot take your home or car as these were not used as security on the loan. Considering this, a debt consolidation may not be for you if you have tough skin and weather the storm while you get your financial situation back on track. Debt consolidation companies claim that they can save your credit but in reality, by the time you get to this point, your credit is ruined. Better to try to pay something on your debts and weather it out because if you can manage to get through the storm you can rebuild your credit later. But with unsecured debt, you have more freedom actually.

Something else to consider when determining if a debt consolidation loan is right for you, ask yourself what you are going to do with your credit cards once the consolidation loan pays them off. Take a hard look at yourself and determine if you have the discipline to not run the charges up on you cards again after a consolidation loan gets you out of hot water. Ask yourself if you are willing to cut up your cards to keep that from happening. You know yourself best and it is of utmost importance to be honest with yourself when considering if a debt consolidation loan is right for you.