What is a debt management plan?

It is an agreement between you and your creditors to pay off your debts at a rate you can afford. You make regular monthly payments to the debt management agency who in turn will distribute the money between the creditors.

Does a DMP hurt your credit score?

Potentially it may, a DMP can affect your credit score even if your creditors agree to one. The reason being that you generally pay a lower amount per month to service your debt, than you would have at the time of taking out the debt. However, once your debts are paid off, your credit score will be greatly improved.