Debt Arrangement Schemes Pass £100 Million Repayments Landmark

November 12, 2015

Entrants into Debt Arrangement Schemes (DAS) across Scotland have paid more than £100 million back to their creditors since 2011, according to official figures on the subject.

The details of how DAS solutions function were changed in 2011 and they have apparently been working well ever since as a means of seeing creditors paid back while giving debtors a chance to get to grips with their financial situation.

DAS were first introduced in Scotland in 2004 as the government aimed to improve the ways in which indebted individuals could reach agreements with their creditors and manage their finances more effectively.

“The Debt Arrangement Scheme has been a real success story for Scotland,” the Scottish government’s business minister Fergus Ewing told an audience at the Insolvency and Restructuring Conference recently.

“Over £100 million has now been returned to creditors through DAS since the new regulations were enacted four years ago, opening the scheme up to more people who need help – a vast sum of money and a remarkable achievement,” he said.

According to the Accountant in Bankruptcy (AiB), which administers Debt Arrangement Schemes, the amounts of money being paid back to creditors via DAS has been increasing year-on-year since 2011.

There was as much as £9.6 million repaid through DAS in the three months to the end of September 2015 alone and the overall total repaid through the schemes since 2011 now stands at just over £112 million, the AiB has said.

Speaking on November 11^th, Mr Ewing pointed out that the Financial Inclusion Commission, an independent policy research body, has called for DAS to be used as a means of helping indebted people throughout the UK.

“Earlier this year, the Financial Inclusion Commission highlighted that existing UK debt solutions are not fit for purpose and recommended DAS, which freezes interest and charges on debts and gives debtors much-needed breathing space, is adapted and rolled out across the whole of the UK,” Ewing explained.

“It is tremendously gratifying to see a respected body like the Financial Inclusion Commission recognise that Scotland is leading the way when it comes to issues of personal debt management and debt relief,” he said.

If you live in Scotland and you are struggling to reach agreement with your creditors then a Debt Arrangement Scheme might be able to help you. Call Scotland Debt Solutions to find out how.

How can I build my personal credit score?

6th March 2019

Your personal credit score plays an important part in securing new loans and credit, and can affect your financial life for better or worse. Lenders use the information in your credit file to determine whether you present a high risk of default, and if your credit score is low, you may find it difficult to […]

Read more

Could a Credit Union help with my cash flow problems?

5th March 2019

Credit unions offer a range of financial products including current accounts, savings accounts, and loans, and can be a good alternative to banks and building societies whilst also helping your cash flow. There are credit unions all around the UK, almost 100 of them operating in Scotland. They’re not always widely advertised, however, and although […]

Read more

Help – my monthly outgoings exceed my income

4th March 2019

It’s a worrying situation when you realise your outgoings exceed your income, and it can be difficult to prevent debt in this situation, but there are solid steps you can take to get back on track – you just need to act quickly. Increasing your income or reducing the money going out are essentially what […]

Read more

Benefits and tax credits when you’ve lost your job

1st March 2019

If you’ve lost your job, state benefits and tax credits can provide vital financial support to see you through this tough time and help you avoid taking on too much debt while you look for more work. As far as your old employment is concerned, it’s important that you check your final wage slip to […]

Read more

How has the Mond ruling changed PPI claims after a Trust Deed?

26th February 2019

If you are a Scottish resident in financial difficulty, you may have entered into a Trust Deed in order to restructure debt repayments to creditors. A Trust Deed is a fixed voluntary agreement made between the debtor and creditor, with the help of a trustee. Debt is broken down into smaller, affordable instalments, typically lasting […]

Read more

Which debts can be included in a Debt Arrangement Scheme (DAS)?

21st February 2019

A Debt Arrangement Scheme (DAS) is a government backed scheme which allows you to repay debt through contractual, monthly instalments without the threat of legal action and incurring penalties or interest. The scheme was established in 2004 for Scottish residents in debt, providing an alternative solution to sequestration, the Scottish equivalent of bankruptcy. A Debt […]

Read more