How does DAS work?
If you’re struggling with your current monthly repayments in Scotland, a Debt Arrangement Scheme (DAS) could help. You’ll pay what you can afford into a Debt Payment Programme (DPP).
You’ll keep paying this until you’ve repaid all the debts included in the DPP. As it is likely you’ll be paying a lower amount than your contractual payments every month, it may take a longer time to repay what you owe.
DAS is a legally binding solution –this means your creditors can’t take any further action against you while the DPP is running. They must also freeze all interest and charges the debts included in the DPP – so you’ll be able to clear your debts quicker than if interest and charges were still being applied.
Your DAS provider will administer the DPP. A DAS distributor will distribute your monthly payments to your creditors included in the DAS. They’ll also receive a percentage of your payment to cover the admin costs of this work.
Applying for DAS
If you want to start DAS, you will need to speak to a DAS approved Money Advisor. You’ll need to apply for DAS through a DAS-approved Money Advisor.
The Money Advisor will provide money advice, help you calculate what you can afford to pay towards your debts and prepare and submit your application for a DPP.
The DAS proposal will then go to your creditors. They are able to reject it if they don’t think it’s fair or they want you to pay more every month. If it is rejected, you might not be protected from further action from creditors, and interest and charges may not be stopped.
Once your DAS is approved, you may be able to change the amount you pay if you have a change in circumstance. You’ll need to speak to your Money Adviser to tell them what’s changed. As long as you can still keep paying towards your debts, they should be able to approve the change to your DPP.
Think that DAS could help you clear your unsecured debts? Read our page on ‘How do I qualify for DAS?’ to see if it’s suitable for you.Continue to the next section How do I qualify for a DAS?