How to get onto DAS

icon1 Posted by admin in Featured Articles, Finance, debt management on 08 22nd, 2011 | no responses

The Debt Arrangement Scheme (DAS) is only open to Scottish residents, as it was set up by the Scottish Government to help people there out of debt.

Under the Debt Arrangement Scheme, you’d enter into a Debt Payment Plan (DPP), which will lower your monthly payments and freeze the interest and charges on your debt.

This Scheme helps many people in Scotland afford their monthly debt repayments. To get onto DAS you’ll need to meet certain criteria, so if you want to find out more about this way out of debt – and whether you meet the criteria – you can find out more and apply for the Debt Arrangement Scheme here.

 

Getting onto DAS

To qualify for DAS, you must:

  •  Be a Scottish resident
  • Have ‘unsecured’ debt
  • Not be able to afford your full monthly payments at the moment…
    • but still be able to repay your debt over a reasonable period
    • and have a reasonable disposable income.
  • Apply with a DAS approved Money Adviser – they’ll be able to tell you whether DAS could be the right option for you. 

 

How does the Debt Payment Plan work?

If your DPP is accepted, you’ll make one regular monthly payment. Your Money Adviser works out how to divide your payment between your lenders and it will be distributed to them every month.

You’ll keep making monthly payments until you have cleared your debt. If your circumstances change, you can explain the situation to your Money Adviser – they may be able to negotiate a new payment agreement with your lenders. When necessary, it may be possible to arrange lower monthly payments for long enough for you to get back on your feet.

However, if you are going to enter into DAS, you really need to be sure you can keep making payments for the length of the DPP. If you don’t think you can, another debt solution may be more suitable – as a DPP required you to keep making payments until the debt is repaid in full.

And any kind of change to your original credit agreements will be recorded on your credit file for six years – which could make it more difficult to borrow money in that time.

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