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Debt Arrangement Scheme

Struggling with your monthly repayments? Unsecured credit commitments? Take a look at a Debt Arrangement Scheme

Introducing Debt Arrangement Scheme

The Debt Arrangement Scheme Scotland (DAS Scotland) was introduced by the Scottish Government in November 2004 to offer individuals in financial distress the ability to pay back their debts under a Debt Payment Programme (a “DPP”) with the backing of the Debt Arrangement Scheme Scotland legislation.

A Debt Payment Program under a Debt Arrangement Scheme stops creditors taking action against you and freezes their interest and charges whilst you repay what you owe over an agreed period (as a guide, no more than 10 years). It is the only debt management scheme for repaying your debts which is legally binding on your creditors, and stops interest and charges accruing. Under the Scheme, your budget is assessed and from that one single monthly (or weekly) payment is agreed with you. This is paid into the Debt Payment Plan, and thereafter distributed to your creditors. The key to the success of a DAS plan is that it is designed not to take account of any assets you have (such as your home or car).

Do you qualify for a Debt Arrangement Scheme?


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Advantages

Repay only what you can afford each month

Calls from angry creditors will stop

Make one payment each month

We handle all communication with your creditors

All communication with your creditors will be handled and any interest and charges will be frozen

No hidden costs. All fees are clearly explained by your debt advisor

All administration charges are covered in your monthly payments

All unsecured debt included in the plan will be paid upon successful completion of the plan


Disadvantages

As with most cost saving plans there may be some disadvantages as below:

Your Credit Rating

Disadvantage

Your credit rating is likely to be affected

Acceptance

Disadvantage

Your creditors are not obliged to accept offers made for a debt arrangement scheme

Additional Credit

Disadvantage

While you have a Debt Payment Programme under DAS, you will not normally be able to access additional credit.

No payments

Disadvantage

Failure to maintain payments on a DAS may result in your creditors breaking off arrangements that were initially made at the start of your DAS. .