Advantages and Disadvantages of a Debt Arrangement Scheme (DAS)

Let's be clear are you looking for a legally binding debt repayment programme? The debt arrangement scheme may be for you! It's also free!

This section is all about DAS, or a Debt Arrangement Scheme. But as stated earlier in the section a DAS is a repayment plan agreed between you and your creditors WITHIN the DAS scheme (we apologise for any confusion and all these various acronyms flying around; we’re doing our best to mention them as infrequently as possible but when we do NEED to use them we will do our best – where possible – to remind you what they are and what the acronym stands for).

Within DAS or Debt Repayment Scheme through Solutions Scotland you’re covered for just about every kind of debt, including:

  • Overdrafts
  • Credit cards
  • Store cards
  • Catalogue debts
  • Unsecured loans
  • Payday loans
  • Debt owed to HMRC
  • Mortgage arrears
  • Rent arrears
  • Council tax arrears

We’d like to stress, however, there are debts that cannot be covered by DAS, such as court fines, benefit overpayment and child support payments. And like with any of Solutions Scotland’s solutions, there are always pros and cons to both.

DAS/DPP Advantages

  • Lower, affordable monthly payments on unsecured debts

This plan is designed to be, first and foremost, FLEXIBLE. This means that your monthly payment is not just affordable but can be made whenever suits you best within in that month.

  • No formal insolvency

Unlike other repayment plans a DAS is not classed as formal insolvency.

  • Protects your assets

A DAS will stop creditors starting legal action against you to remove assets which will give you the peace of mind knowing nothing will be taken away!

  • Flexible payment plans

As we stated in the first point, flexibility is key with a DAS. So if you experience any sort of change in circumstances while in a DAS, Solutions Scotland may be able to reduce your payments after liaising with your money advisor. Plus, if your income is reduced we may be able to provide you with a payment break of up to six months.

  • All legal action stops right here

Providing you follow your agreement, your creditors cannot lawfully take any legal action against you, we can stop creditors contacting you too!

  • Time is on your side

Unlike most debt solutions, with DAS, you can generally spready your repayments over a long period of time such as ten years if need be! PLUS your debt WILL NOT increase as all interest & charges are frozen.

  • It is completely free to you as a client!

As of 4th November 2019 legislation in Scotland was passed, THE DEBT ARRANGEMENT SCHEME (SCOTLAND) AMENDMENT REGULATIONS 2019 to be exact. Which imposed that creditors must pay the administration fee (which goes to your money advisor who administers your plan), which means all of your hard working money can go to getting debt free quicker!

Debt Arrangement Scheme (DAS) Disadvantages

  • Not applicable outside Scotland
  • Can take longer to repay
  • If you delay payments, creditors can take action to recover the money (but remember DAS is a formal, legally binding solution for you and your creditors, so once it starts any further legal action cannot be taken)
  • Debts aren’t written off
  • May affect your credit rating – and can only be wiped clean after 6 years

If after all a DAS is not for you, there are a number of other solutions that our super friendly advisors at Solutions Scotland can talk to you about. These include

  • Sequestration (Full administration Bankruptcy)
  • Protected Trust Deed
  • Arranging repayment with your creditors yourself if your situation wasn’t as bad as you thought
  • Using equity within your home or assets to pay off your debts
  • Full & final settlement offer with your creditors
  • Minimal Asset Process (MAP | Bankruptcy)

Whether it’s to discuss DAS or any other repayment solution – for a stress-free, positive solution to any financial problem contact Solutions Scotland today on – 0141 739 8180

Whether it’s to discuss DAS or any other repayment solution – for a stress-free, positive solution to any financial problem contact Solutions Scotland today on – 0141 739 8180

Solutions Scotland is a trading style of Milton & Stirling Ltd, Company Number SC587851 – Solutions Scotland, 78a Stanley Street, Glasgow, G41 1JH. DPA number ZA431921

Milton & Stirling Ltd are an Appointed Representative of MichaelAlan Ltd who are authorised & regulated by the Financial Conduct Authority, FRN 690939.

As part of our free service, we’ll review your financial situation, explain the available options and recommend a debt solution which is suitable for you. The risks of all suitable solutions will be explained clearly and if you decide to go ahead with a debt solution we will refer you to one of our trusted providers who specialise in the management of that debt solution. We’ll be paid for introducing you or for the preparatory work we do, depending on your debt solution fees may be payable if ongoing services are provided. Read about fees and key information in our terms & conditions. To find out more about managing your money and getting free debt advice, visit Money Advice Service , an independent service set up to help people manage their money.