For Canadians trying to manage Canadian debt without the help of a professional debt consultant, this is the step that most find extremely uncomfortable. The assumption is your creditors will be more willing to listen to a professional credit counselor than to you. In fact, the exact opposite is often true.
The failure rate on these credit-counseling solutions is high and the creditors know this. They also know the principal reasons for failure are the extended time it takes to complete the repayments. They further know if you act on your own behalf, you can complete the program faster since you are not paying fees and commissions.
What they need from you is proof you need help and have the ability to make the payment arrangements you are suggesting. If you are serious about getting out of debt on your own, you will be willing to sacrifice much of what you own that you can live without. If you can generate enough cash to pay off a few of your creditors in full before you approach the remaining ones, you increase the odds they will accept your informal proposal.