My credit was already kinda crummy before I entered the DMP (low to mid 600's). It has went up a bit over the years I have been in the DMP as a result of paying off my balances, but getting credit has been nearly impossible (which is just as well for me). The credit card companies close your accounts and you just pay down the balance at the lowered, agreed up on rate until they are at 0. Your credit score will suffer a bit because your outstanding balances stay the same but your available credit essentially goes to 0 - so that ratio is reflected and can kill your credit score until you are able to establish credit again.

Your credit report does have a note on each account saying something along the line of "account is currently under a debt management program". This, of course, is a big red flag to companies inquiring about your credit. Mortgages, nice cars, etc are either difficult to obtain or you are looking at crazy rates. This flag goes away once the account is paid off.

From what I have heard, there are some DMPs that will screw you dearly. Most of them require a small amount upfront (20 bucks or so) and then a monthly amount for them to handle everything for you. I think I pay 25 a month (and about 900 to all my creditors). Of course, that 25 a month has more than been paid for by the dmp getting my rates down to single digits.

I use Clearpoint Financial Services. I did it all online. They have been great. When/if you do pick out a DMP, ensure that they are certified by the National Foundation for Credit Counseling (NFCC).

Hope this helps.