Confused about DPM options on credit cards

[LoveforPGTipsMonkey]

Need to make a decision this week so would be grateful for advice.
I've been given two options re DPM - 1% of the total or what I understand is a default and paying literally 1-10 pounds per months but then getting 'bad credit' for 6 yrs.
What I don't understand is, how would my credit rating be any better in real terms with a part payment when creditors would still see that the cards are full and I'm on dpm. The bank being evasive about this i.e. they would of course prefer for me to go for option 1, but as it is I can't get more credit anyway (I mean, new cards, transfer offers etc).

Possibly defaulting means more than just being refused cards? I don't want to get any loans for e.g. car, but even if I did apply now, wouldn't get it. Can someone clarify this please - spell out all the disadvantages of doing that? If you did it yourself, did you regret it?
The one danger I was advised amout is that if I go on minimal DMP on my main cards, they may demand I do that on all my cards - that does worry me as I must have a card or two (with much smaller limits on them) for emergencies.
I'd love to get an equity loan of 5-10 % to pay off the cards, but I'm not at that age yet, and can't find anyone reputable who would do it fo under-50s so DMP is the only option currently. I will be downsizing but this will take ages, house don't sell fast where I am.
TIA!

*houses

Usually if you go on a DMP, you need to include all your debts, otherwise you are not seen as treating all your creditors equally - i.e. one may be getting a full monthly repayment, one is getting a reduced payment and/or no interest.

Thanks, IsDaveThere. I could agrgue that the two cards I want to keep and use have incomparably lower monthly [ayments -one is just 25 pounds! I can afford that but not the big ones, and so far the bank offered me a plan without mentioning others - but is this coming up?

My other question is, if I do go on dmp for all cards, would I still be able to use the two that I have low balance and space on? To me this is crucial as I must have access to emergency funds (i.e. dental treatments, house repairs etc). I mean, how on earth are you supposed to budget for emergencies - would they allow if situation is explained?
It's just so frustrating that under-55s are unable to get a small equity loan with a set terms, while selling the house. Instead people aer cornered with dmp which are not flexible, as it sounds!

I mean 'for a set term'.

I'm prepared to be corrected but I thought you had to declare all debts and cards otherwise there's nothing to stop you overspending and getting in a mess again.
I think you're then supposed to live within your means so that that there is a small pot for emergencies etc rather than being able to access more credit/debt.

If you are going in to a debt management plan then yes, you do have to include all cards and debts as usually one of the conditions is that you do not have or take out any further credit. You would budget an agreed amount monthly to save for emergencies such as the ones you mention.

if you are just coming to an informal arrangement with one particular bank or lender then it is up to them whether they accept that you still have and use other cards or not.

thank, Nearly. i didn't mean applying'asking for yet more credit, I can see that this would defeat the purpose, what I meant was, would it be allowed to use existing credit card space (the ones with modest limits) on which you have very low balance, but of course not the major ones you pay on. Living within your means for some/many people means paying the bills/living expenses but not being able to save. And a lot of people use c/cards for emergencies - that's often the only choice.
Dave well that's what I'm hoping - having an informal arrangement with the major provider as I can afford paying small ones, but do you mean reduced pay,ments rather than 'token' minimal ones - is that what informal would mean? i.e. when it comes to token payments they'd only consider if that applies to all my cards? I have by the way told them about my other smaller cards, so I'm not hiding that but they (so far) only discussed their own dmp.
Could you also please comment on my earlier question - if someone defaults and has 6yrs 'bad rating' would reflect on anything other than taking loans? thanks again.

sorry for typos!

If you are not paying the full contractual monthly payment then it will have a negative effect on your credit file. This will affect you if you wish to apply for any credit - loans, mortgages, credit cards and maybe even mobile phones.

thanks, Hilary. And by that you mean existing credit (i.e. mobile and cards) or only if I applied for new credit? I don't plan to take loans but I was hoping to be able to use that bit of space that I have on other cards already (not the one where I discussed DMP).