The first point usually asked is the impact on your credit rating.

When you enter into a DMP, it may be recorded on your credit report. While the DMP itself does not directly affect your credit score, the fact that you are using a DMP to pay your debts can signal to potential lenders that you are experiencing financial difficulties and struggling to manage your debts.

This could make it harder to obtain new credit while you are on the plan.

When it comes to your credit rating, any sort of Debt Management Plan could affect your credit score for a while. But keeping regular payments will always help your score.

So, the truth is, that the beneficial effects of a DMP helping you with more cash available for day to day living expenses, and the stress relief, far outweighs a slight down grade in your short term credit rating and ability to borrow money.