Consolidating Debt: When is the Right Time?

I've heard a lot of people give advice about why you should consolidate debt. The reasons are obvious; to lower your overall interest cost and to improve cash flow. However, I've never heard anyone talk about when you should consolidate debt. I frequently get calls from people experiencing some kind of financial difficulty who are thinking about taking out a mortgage. Trouble is, they’re already maxed out on their credit cards and in some cases they’ve started missing payments. The time to access funds is before you are maxed out on your credit cards -- avoid missing payments at all costs! Anytime you are more than 30 days late making a payment on anyone one of your credit cards, loans, etc. your lending institution will send the information to the credit bureau and your credit will become tarnished. Once your credit is tarnished it will be more difficult and more costly to get the funds you need. Therefore, the time to access mortgage funds is before you are maxed out and before you have started missing any payments!