Debt Arrangement Scheme (DAS)
A Debt Arrangement Scheme is a debt solution that allows you to repay your debt in full at a more affordable rate, and where interest and other charges are frozen for as long as you maintain your payments.
Debt Arrangement Schemes – things to consider
A Debt Arrangement Scheme is usually administered through a debt management company who will formulate a Debt Payment Programme (also known as a DPP) that outlines to your creditors exactly how much you can afford to repay.
If your creditors accept this proposal, then your creditors agree to freeze interest and charges and they will cease contacting you with demands for payments. You begin making regular monthly payments into your Debt Arrangement Scheme, although if you miss payments then you risk the failure of the scheme and interest will be re-applied from when it was originally stopped.
Your Debt Arrangement Scheme will normally continue until you have fully repaid the outstanding balances to all your creditors.
Frequently Asked Questions about Debt Arrangement Scheme
What else do you need to consider with regard to a Debt Arrangement Scheme?
A Debt Arrangement Scheme is only available to residents of Scotland who have an amount of spare income that they can use to go towards repayment of their debts.
Embarking on a Debt Arrangement Scheme will affect your credit rating because, even though your creditors will have agreed to your new repayment terms, you will have still broken the original terms of your credit agreement.
You are not permitted to enter into a Debt Payment Programme if you are already bankrupt or undertaking a trust deed.
Your details will also be stored on the Debt Arrangement Scheme Register. This will prevent you from taking out a loan for as long as your Debt Payment Programme is running.
Thinking about a Debt Arrangement Scheme?
A Debt Arrangement Scheme might be a suitable debt strategy for you although there may well be more suitable debt solutions available to you, depending on your circumstances.
For advice on Debt Arrangement Schemes and Debt Payment Programmes, call Payplan FREE on 0800 316 1832 or use the online enquiry form
Not right for you? Read about other debt solutions that may suit you better: Trust Deed, Sequestration, Low Income, Low Assets (LILA), Buy-To-Let Mortgage, Bridging Loan, Remortgage, Debt Management Plan, Full & Final Settlement, Self-Managed Arrangement, Equity Release, Debt Consolidation Loan.