How will being on a Debt Management Program affect my credit?

Debt management programs exist to assist creditors in collecting debts and assisting debtors in preserving credit. It is a plan that can only work if the creditors cooperate, which most of them do. However, the creditors reserve the right to report to the credit bureau that the debtor's account with them is enrolled on a debt management program. A debt management program notation on your credit report is open to positive or negative interpretation by creditors and other entities that review your report. In rare cases, creditors may report that you are late on payment obligations. However, most creditors view debt management programs as an acceptable alternative to reducing the burden of debt, or they would not agree to adjust the repayment terms. For debtors who are behind on their payment obligations, most creditors will arrange to bring them current after enrolling in a debt management program.