Debt consolidation is the logical answer for thousands of Canadians who are struggling to pay off their creditors. A debt consolidation plan provides a single payment option for debtors with more than one creditor. It reduces anxiety, lowers interest payments and provides a repayment option that suits the needs of the debtor.

There are several management companies that specialize in constructing debt solutions for Canadians. Our debt counsellors work to provide financial answers for reducing personal debt.

If you are struggling to pay your bills, overcome with an anxiety about your financial situation or simply looking for a cheaper way to handle your monthly payments a debt consolidation plan may be the answer you are looking for.

Here are the top five reasons why a debt consolidation plan makes sense.

1. Stress Reduction

-Multiple creditors means multiple monthly bills, multiple interest rates and multiple collector phone calls. A debt consolidation plan simplifies things. You only have one bill, one interest rate and the phone calls will end.

2. Lower Interest Rates

-Yes! A credit counselling plan will reduce your overall monthly interest. This means you will have more money for living, business development and or repayment.

3. Creative Borrowing Ends

-You will no longer have to rack your brain for money sources from which to borrow from. You won't have to make that monthly call to your parents. You won't have to plead with your friends for loans. And you won't have to rely on payday cheques to get you through the week. With a consolidation plan, you only need to provide a reasonable payment once a month.

4. Credit Improves

-Fact: a debt payment plan indicates to your creditors that you plan to repay your entire debt. It tells them that you are NOT considering bankruptcy, an option that can destroy your credit rating for years to come. A debt consolidation plan is a positive first step.

5. Financial Advice

-A debt consolidation plan comes with a personal financial advisor. This individual is trained to negotiate with your creditors. He/she will build a plan around an affordable payment sum. They will also provide advice on managing your income, so that you never miss a payment again.

The reasons are there. Take the first step to financial freedom today.

To find out more about deb management, and how it differs from country to country, ask a local advisor about how they can consolidate your high-cost debts into one simple plan that works.

Mike Catherall is the founder of Vancouver advertising agency Immersion Creative.

He often writes about debt consolidation in Canada.