One of the disadvantages of a Debt Management Plan is that it will have a negative impact on your credit rating. Debt management involves making smaller payments to your lenders each month than you originally agreed to, and this will stay on your credit report for six years. During this time you might find it harder, or more expensive, to obtain further credit.
Debt Management Plans are designed for people who are struggling to meet their current monthly debt repayments. If you are struggling to meet your unsecured debt repayments, you may end up missing payments, paying them late or not paying the full amount required, which will impact your credit rating too.