Reduces unsecured debt repayments and protects against action from lenders
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Find out more about the fees involved with each debt solution.
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Call us on 0800 970 7673or fill in our simple form to receive a free no obligation call back from one of our friendly, experienced advisers.
It's an informal repayment plan for people who can no longer afford all their debt repayments. It works by reducing your unsecured debt repayments to a manageable level, leaving you with enough money to cover all your secured debts (e.g. your mortgage) and other essential costs like bills.
DAS is only available to Scottish residents. It's also only available to those who genuinely can't afford to make their existing debt repayments, but who can commit to (reduced) monthly payments. You must also be able to repay your unsecured debts in full within a reasonable time.
Even if you are eligible, your lenders aren't obliged to accept your application, although it's quite likely they'll do so if it's clear you can't afford to repay your unsecured debts any other way. And sometimes the Accountant in Bankruptcy (the DAS Administrator) will approve your case even if it's been rejected by your lenders.
Your Debt Payment Programme can last as long as it takes for you to repay your unsecured debts, within reasonable limits - there's no fixed timeframe. However, if your circumstances improve enough for you to resume making full repayments again, the DPP may end at that point.
DAS is a formal scheme, which means you'll have to get help from an approved Money Adviser to arrange your Debt Payment Programme.
We can help to arrange your Debt Payment Programme from start to finish. We'll start by explaining what's involved, and then if we feel it's the right option for you, we'll talk to your lenders on your behalf to arrange a new affordable repayment plan. We'll also be here throughout your DPP to provide support and answer any questions you may have.
It all depends on how much you can afford. Monthly payments are based on what's left of your income after you've covered your bills and other essential living costs.
Your monthly payments may change over time, as and when your available income changes (i.e. if you receive a pay rise, or if your income falls). The idea is that you pay off your debts as fast as you can, while ensuring your other commitments are taken care of.
The Debt Arrangement Scheme is a formal scheme that, once in place, prevents your lenders from taking any further action against you. We can't guarantee that you'll never hear anything from them, but rest assured that you won't have to make any payments other than those set out in your DPP. As long as you keep up with your payments, you'll be safe.
They work in a very similar way, but DAS is legally binding once it's in place - meaning you're protected, as long as you keep up with your payments.
A debt management plan is an informal arrangement, which means your lenders could stop the agreement at any point (although this is uncommon without very good reason).
Because you won't be making the repayments you originally agreed, your credit rating will be affected, which could make getting credit a lot more difficult in future.
Your details will be recorded on the DAS register for six years, which could also affect your ability to get credit.
However, all debt solutions have their downsides, and failing to get the help you need could have much more serious consequences.