It is important to understand that all personal debt management solutions are likely to make your credit rating worse.
If you are unable to maintain the agreed payments towards your debts and have to reduce or even miss these by implementing a debt management solution, your accounts will fall into arrears or further into arrears. It is therefore likely that creditors will record missed payments on your credit file and even issue default notices against you.
As a result your credit rating will become worse and in most cases you will be prevented from obtaining further unsecured credit until your existing debts are repaid or settled after which your credit rating will start to improve.
If you are struggling to repay your debts and considering a debt management solution it is likely that you are insolvent and therefore facing the inevitability of missing your agreed debt repayments anyway. As such it is almost certain that your credit rating will become affected in the same way whether you chose to implement a debt management solution or not.
For this reason the fact that implementing a debt management solution will negatively impact your credit rating should not necessarily be your primary concern when considering using such a solution to resolve your debt problems.
Tip: For a more detailed analysis of how each specific personal debt management solution will affect your credit rating, please click on the links below:
How DMPs affect your credit rating
How IVAs affect your credit rating
How Bankruptcy affects your credit rating
How a Debt Relief Order Affects your credit rating
How a DAS affects your credit rating
How Sequestration affects your credit rating