Startup Guides > Debt consolidation can be an effective method of making your debt repayment more manageable. You wouldn't be the only one with debt hanging around your neck. It is a Canadian thing, with the average Canadian debt ratio shooting above 70%. This is a remarkable departure from how things were 20 years ago. Debt consolidation is the combination of the amounts you owe into one. This includes credit card debts on multiple accounts and other personal loans.