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Debt Arrangement Scheme - DAS

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Debt Arrangement Scheme (DAS)

Debt Arrangement Schemes known as DAS, are relatively new and they are only available in Scotland. They are often designed as a ' legally binding Debt Management Plan.'

The Debt Arrangement Scheme is a government debt management tool. It lets you apply for a debt payment programme (DPP) which helps you repay your debts by making affordable monthly payments.  

  • Protection from creditorsNo contact allowed
  • An affordable paymentUsing a debt payment plan
  • Freeze interest and chargesDuring payment plan

How does a DAS work?

Since they were designed, DAS have helped thousands of people in Scotland to find a lasting solution to their debts,
Interest & charges frozen
Once the DAS is in place, all of the creditors included on the plan are no longer allowed to charge interest on the debt. This means your payments will be bringing down the total debt amount.
Reduced Monthly Repayment
DAS works by finding a monthly repayment that fits into your household budget. It is always affordable and usually considerably less than you were originally paying towards your debts.
Legal Protection From Creditors
When the DAS is agreed, the creditors included on the plan may no longer take action to recover the debt, contact you or chase for payment, this is legally binding.
Consolidate Your Repayments
When on a DAS, all of the debts included are covered by just one monthly payment which is then distributed amongst your creditors.

Example of a Debt Arrangement Scheme:

Everyone has a unique financial situation. Different debt levels, different incomes and expenditures etc. Everyones DAS will be different but below is an example of how one could work.

Before a DAS:

Total debt & interest to repay: £55,882
100%
Monthly Repayments: £350
100%
Time in debt: 17.6 Years
100%
Monthly interest & charges: 26%
100%

After a DAS:

Total debt & interest to repay: £18,000
33%
Monthly Repayments: £150
42%
Time in debt: 10 Years
57%
Total Interest & Charges: 0%
1%

The downsides to a Debt Arrangement Scheme

There are some down sides to a DAS and it is always important to weigh up the pros and cons before deciding on what you would like to do.
Monthly Fee
10% of your monthly payment is taken as fees to cover the running costs
A Negative Impact on Credit Rating
Like all non borrowing debt solutions, a DAS will have a negative impact on your credit rating. It will appear on your credit rating for 6 years and during the DAS it will be difficult to get further credit.
Must keep up with repayments
If you don't keep up your payments the DPP could fail, and creditors can add interest charges, or take further action against you.
Filed on a Public Register
Once you’re on a DAS your details will be put onto the DAS register. This is an online register that anyone can access.
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