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It’s important to remember that no debt solution is perfect and there is no ‘one-size-fits-all,’ which is why we recommend speaking to one of our expert debt advisors about your options and next steps.
Debt Arrangement Scheme (DAS)
Entering into a DAS can help debtors commit to paying off the entirety of their debt through a single, affordable monthly repayment amount.
What is a DAS?
A DAS is a government-run arrangement that allows you to repay all of your debts through a debt payment program (DPP). A DPP allows you to pay off your debts in full over a reasonable time period through affordable monthly payments. Your monthly payment amount is based on your income and expenditure and will be an amount that you can afford.
Is a DAS right for me?
A DAS is suitable for anyone struggling to make their contractual payments each month (the repayment amount originally agreed with their creditors) but who still have some money left over after they have paid for their essential living expenses such as household costs, travel and clothing. A DAS is only available to residents of Scotland. For those living in England, Wales or Northern Ireland a debt management plan is a similar solution.
Is a DAS legally binding?
A DAS is a legally binding solution. Meaning that, once your debt payment program (DPP) is set up, all interest, fees and charges on your debt will be frozen and you'll be protected from any legal action by your creditors for the duration of your plan.
How much of my debt will a DAS write off?
Unlike other solutions, a DAS does not write off any of your debt. All of your debt must be paid back in full over time.
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DAS Pros
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It’s affordable. Your monthly DAS repayments will depend on your personal income and expenditure, meaning it will be an amount you can afford each month.
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You will be completely free of debt in an agreed period of time.
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Interest rates and charges will be frozen as part of a DAS and contact from your creditors will stop.
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Your assets are protected in a DAS, meaning you won’t be expected to sell your home or your car.
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If you experience a change in your circumstances (such as losing your job) it’s possible to apply to reduce your monthly payment to a level you can afford.
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If you experience a temporary change in your circumstances, you may be able to apply for a payment break of up to 6 months.
DAS Cons
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A debt payment plan (DPP)/DAS will appear on your credit file for six years or possibly longer.
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Once you’re on a DPP, your details will be put onto the DAS register.
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Unlike with other solutions, no amount of your debt will be written off and you will have to pay back your debts in full.
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If you miss payments, it’s possible that your DAS will fail (unless a payment break has been granted). If your DAS fails, your creditors can apply interest, charges, take legal action and petition for your bankruptcy.
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It’s normally a condition of your DPP that you cannot obtain further credit.