Debt Arrangement Scheme
Repay Your Debts in Full - With Zero Interest
The Debt Arrangement Scheme (DAS Scotland) can be an ideal solution for people who have assets, but are struggling to maintain their existing monthly debt repayments.
Often people can afford to repay what they borrowed, but find themselves struggling to manage the interest and the demands of multiple monthly payments. The Debt Arrangement Scheme allows you to consolidate your debts in to one monthly payment, repay the full balance of your debts and get yourself back on an even keel.
As you are repaying your debts in full, assets - such as homes, shares and vehicles are excluded from the process and you retain full ownership of these at all times.
DAS is a formal debt solution, which means you will be unable to obtain new credit whilst in the arrangement, or use an overdraft. Your credit rating will be affected and you will have to comply with certain conditions - such as maintaining your payments to your ordinary bills.
What are the advantages of DAS?
- Affordable payments
- Protected from legal action from creditors
- Your home & any other assets are excluded from the process
- Interest and charges are frozen once a Debt Arrangement Scheme is approved
What are the disadvantages of DAS?
- Your credit rating will be affected
- Unlike a Trust Deed, a DAS is not complete until you have repaid all of your debt
- If it fails, frozen interest can be added back to the new debt balance
- If your affordability reduces during the term, you need approval from your creditors or DAS Administrator to reduce your payment & extend the repayment term