What is the DAS (Debt Arrangement Scheme)?
While there are many different options available for people who may be struggling with debt and multiple creditors, there are few options simpler than the DAS. The Debt Arrangement Scheme, to give the avenue its full title, is a tool exclusive to Scotland – one which enables those struggling to make payments to understand their finances a little better, and one which can really help to relieve mounting debt and interest from potential collection activity. It is one of many services we are happy to offer and suggest to our customers – and, as such, we think it makes a fantastic gateway option for those who are unsure where to start in terms of preparing to pay off creditors.
DAS operates much in a similar way to an IVA, though the terms are perhaps a little simpler and this is a scheme that is completely exclusive to Scottish residents. Therefore, it has fast become one of our recommended approaches to debt management despite its relative newness. It is one of many options we will of course look with you should you wish to approach us for Debt Advice – and we will only ever offer impartial, independent support that directly benefits your circumstances and situation.
How Can the Debt Arrangement Scheme Help Me?
If you are in need of debt management advice and are unsure where to turn, requesting to know more about how DAS can help your given situation may well be one of the best decisions you can make. The scheme has been designed by the Scottish government to assist those in need of financial assistance, advice and education on matters related to owing money to creditors and to clearing debt. The DAS is a great asset to those people who are more than happy and able to make a flat, monthly payment to such a scheme – in the name of reducing action and money owed to several creditors otherwise.
The Debt Arrangement Scheme pros and cons can be fairly balanced – those people with considerable debt may wish to look into more intensive methods, or even sequestration at absolute worst – though the benefits of signing up are plain as day to see. More than just an advice service, a DAS can help you to consolidate and pay your existing debts to various lenders over a certain period of time – this is known as a Debt Payment Programme, or DPP – and once creditors have agreed to join such a scheme in light of your co-operation, you may find paying back money far easier than before.
However, the main draw of the DAS is not just in the repayment simplification – it’s in the protection it provides.
Debt Arrangement Scheme Advice
Debt Arrangement Scheme advice is an asset for many people living in Scotland. It is a service which can help you to understand debt patterns, how much is enough to pay to various creditors, and how you can build yourself a long term plan to be free from debt in future. However, a further bright spot for the service lies in the fact that, once you have set up with the DAS and have agreed to schedule monthly payments, they can effectively prevent creditors and lenders form taking any additional action against you.
This means that you are effectively protected from threat of bankruptcy, court action and even loss of assets – and that this can all be achieved simply by applying for help from the DAS and to ensure that you keep up payments with them. A DPP with the DAS will normally come hand-in-hand if you are struggling particularly to clear debts on a regular basis – but we will discuss all of these options with you should you wish to speak to one of our debt solutions advisors.
Debt Arrangement Scheme Criteria
As with other forms of debt relief support that we can provide and set you up for, there is Debt Arrangement Scheme criteria which you will need to adhere to before applying, and of course during your tenure on the scheme. You must, essentially, be residing in Scotland – the same applies for many other debt solution options we provide – and the scheme will be deemed suitable for you if you have enough income or capital available to regularly repay certain debts. Much of the DAS service can be provided for free – but some services may come at a cost. This is something we will be more than clear on when discussing such options with you.
The types of debt you can apply to be covered under the Debt Arrangement Scheme criteria is rather varied. Many people apply for this type of support if they are struggling to pay utility bills, council tax, bank loans, store cards and more besides – heavier debt such as mortgage arrears can even be catered to under certain circumstances. Once again, this is something which we will be able to discuss with you upon initial consultation. We will aim to ascertain whether or not DAS is appropriate for your debt, your circumstances and your current ability to make payments. There are, of course, other arrangements that can be made and other routes that can be taken if this service is not deemed relevant to your needs.
Can the Debt Arrangement Scheme Affect my Credit Rating?
As with other forms of debt relief support and management, enrolling onto the scheme or a DPP can have a negative effect upon your credit rating. While more intensive forms of debt relief and support such as sequestration can impact upon your score for up to six years, the damage done may be far less with the DAS – and we will, of course, analyse this and advise you in detail ahead of you making any firm decisions. It is therefore worth weighing up the Debt Arrangement Scheme pros and cons. On one hand, it can affect your credit rating and your ability to borrow in future – but on the other hand, it can freeze debt interest, effectively stop courts from taking action against you regarding said debt, and can even help you to set up a manageable repayment plan to help you relieve yourself. If anything, enrolling on the DAS is a perfect option for those who simply want a gentle push in the right direction – with the added benefit of being protected against legal action should it arise.
Other Debt Solutions to Try
As debt management advisors we are of course versed in a wide range of different options and routes that you can use in an attempt to seek debt relief. The DAS and DPP options are available to all of our customers at any time – and while they provide a useful in-road towards debt relief on the whole, there are other options available which may appear more viable or applicable to your circumstances or needs. Here is a brief overview of other services we may discuss with you:
A similar method for people living in the rest of the UK are Debt Management Plans which help you put together a system for repaying your debts in a simpler way. You will work with an expert to come up with the plan and create one that works best and is manageable for you.
An IVA is a popular choice for many people who are struggling to pay several debts to several creditors. This IVA Debt Advice essentially allows you to consolidate your debts with a third party, who will then act on your behalf and share money to your creditors. This is a more viable alternative to applying for a quick-fix loan and paying off your debts in a consolidated fashion – particularly as it offers you the opportunity to seek support alongside making more manageable payments each month.
In a similar fashion, Trust Deeds in Scotland can be used to secure the support of a third party who will then be able to liaise and potentially clear debt with lenders on your behalf. However, this will also mean that you need to ensure your estate to such a third party – it is a less intensive option than bankruptcy, but considerably viable to plenty of people struggling to clear debt with several people at once.
Sequestration is another option which you may want to consider. This is essentially declaring bankruptcy – a fair option to take if all other routes have been exhausted, but this route can be considerably restrictive upon your credit score. This does ensure that your slate is wiped clean – but it is likely we will not consider this option with you until all other avenues have been properly explored. Get more Advice on Sequestration from our team by getting in touch today.
For the rest of the UK, Advice on Bankruptcy is available if you feel like this would be the best option for you. Obviously this is a big decision to make so be sure to speak to us if you would like some help with this particular method.
You might choose to Consolidate Your Debts to put them into one affordable payment which you can manage each month. This is a common solution for people struggling to keep up with multiple creditors.
You could get Full and Final Settlement Advice to help clear your debt problems as well. These proposals can be made to creditors to help reduce the overall amount you pay with our help. These suggestions may or may not be accepted by such lenders, but it is a route which may work depending upon your situation and your circumstances.
Further Debt Advice
As dedicated debt relief advisors, we are specialised in a wide range of options and support packages including the Debt Arrangement Scheme register to help relieve your mind and to help heal your financial wounds. We will impartially discuss your case with you along with any concerns you may have – and from here, we will endeavour to help you escape debt for good. Call us today for a quick chat on 0808 223 4188 at your convenience.