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A Debt Arrangement Scheme (DAS) is an initiative created by the Scottish Government to help people struggling with debt to regain control.

The DAS allows you to request the setting-up of a Debt Payment Programme (DPP) which allows you to pay off your debts by making affordable payments.

A DAS can only be arranged by a registered and approved professional company or organisation. Scotland’s Trust Deed can help you to navigate the process. So contact us as soon as you begin to struggle with debt since ignoring or avoiding the problem will simply make it worse.

The advantages of a DAS

Affordability. You will pay off your debts with a monthly amount that allows you enough money for everyday essentials and living costs. Also:

  • Interest and charges will be stopped.
  • Legal action and contact by and from your creditors will not be allowed.
  • You can apply to pay extra, reduce your payments or even take a six-month payment break.
  • The end of the DPP means the end of your debt.

The disadvantages of a DAS

  • Your credit score will be affected for six years.
  • Your DAS will appear on a public record.
  • A proportion of your payments will be used for running costs.
  • Not making payments will cancel the DAS and the adding of interest and court action by your creditors will then be allowed.

Who qualifies for a DAS?

  • To find out if you qualify and are suitable for a DAS/DPP then contact a professional, expert company such as Scotland’s Trust Deed.
  • You must live in Scotland. England has its own version of a DAS with a different set of rules and parameters.
  • If you have extra income at the end of the month after paying for your home, bills and living cost then you may be suitable.
  • You must have enough ‘extra’ to pay towards your debt this must be enough to pay off your debt in a reasonable length of time.

How is a DAS operated?

  • An affordable payment is made into the DPP and that is then shared out amongst your creditors.
  • You will have a trustee or ‘money advisor’ managing your case.
  • The payments made will be paid to the people you owe money by the ‘payments distributor’ responsible for your case.
  • The length of a DAS will vary depending on the size of your debt and the amount of ‘extra’ money you have each month. It will not usually last longer than 10 years. If longer is needed to clear your debt then a DAS may not be for you.
  • Your DPP can be cleared by one big payment if desired.

What are the alternatives to a DAS?

If you do not qualify for a DAS/DPP then a Trust Deed (only in Scotland) or Sequestration (better known as bankruptcy) are the other options to investigate.

Contact experts such as Scotland’s Trust Deed for advice on the best way to clear your debts and start enjoying financial freedom again.