Is now a good time to take out a personal loan for debt consolidation?

Before you start the debt consolidation process, make sure you know what you're getting into right now. /iStockphoto High credit card debt has become a defining hallmark of the current economic landscape. The total credit card debt nationwide is currently sitting at over $1.23 trillion , the latest record high, and at today's rates, the average cardholder is carrying a balance that costs them significantly more than it did just a few years ago. As a result, a substantial portion of every minimum credit card payment goes straight to covering the interest charges rather than reducing the principal balance. And when you add in the other ongoing economic hurdles, like rising inflation and a tough job market, it's easy to see why paying off debt is becoming more difficult for borrowers. That's where the idea of debt consolidation , which involves rolling multiple high-rate balances into a single, lower-rate loan, comes in. This approach to debt has long been positioned as a straightforward fix for the financial drag that comes from carrying high-rate revolving debt, and the appeal is clear. You replace several expensive debts with one predictable monthly payment at a better rate and watch your payoff costs and timeline shrink. But whether debt consolidation actually works in your favor depends on multiple factors, including the consolidation product you use and the credit score you bring to the table. …