Debt Arrangement Scheme (DAS) - Scotland only
With the Debt Arrangement Scheme, you could:
- Repay your unsecured debts with lower monthly repayments over a longer period, although this will affect your credit rating
- Protect yourself against action from lenders, as long as they agree to your Debt Payment Programme
- Have all interest and charges frozen as soon as your Programme's agreed
Help with unaffordable debt repayments
As part of the Debt Arrangement Scheme, a Debt Payment Programme (DPP) helps to ensure your unsecured debt repayments are affordable by letting you repay what you owe over a longer period. Assuming your lenders agree to the terms, you'll only pay what you can afford towards your unsecured debts each month.
A freeze on interest and charges
Once an agreement is in place, all interest and charges will be frozen, so your debts can't grow. That means more of each payment you make goes towards the debt itself.
You will still repay all your debt in full - but more slowly. Please bear in mind that your credit rating will be affected as you won't be repaying your debts in the way you agreed when you first borrowed money.
Protection against action from lenders
It's a legal agreement, which means once it's agreed your lenders can't take any further action - as long as you stick to your side of the agreement.
How DAS works
The Debt Arrangement Scheme is a scheme designed to help Scottish residents who can't afford their debt repayments. Under the scheme, you'll have your own Debt Payment Programme (DPP) - a plan for repaying your unsecured debts in affordable payments.
We'll talk to your lenders about reducing your payments, so you don't have to. Your new payments will be based on what you can afford after you've covered your bills and other living costs.
You'll keep making reduced repayments until your circumstances improve, or until you've completely repaid the debts - whichever comes first. Please note that your first monthly payment will cover the cost of setting up your DPP. So, it won't go towards your debts, which will increase initially.
Is it right for me?
A DAS Debt Payment Programme could make a big difference if you can't afford your unsecured debt repayments as they are, but can still afford lower monthly repayments.
It offers all the benefits of an informal debt management plan, but you'll also have the added protection of a legal agreement, and you won't have to pay interest or charges.
However, DAS can't help you if you don't think you'll be able to repay your debts within a reasonable timeframe. And remember, you must be a Scottish resident to qualify.
A DAS Debt Payment Programme could help to make your unsecured debts affordable again, but do keep in mind that because you won't be repaying your debts as originally agreed your credit rating will be affected. Smaller repayments will mean the debt takes longer to pay off.
- 0161 669 8925
- 0161 669 8925