Reviewed 13th February 2024
Debt payment programmes are a fundamental part of the Debt Arrangement Scheme (DAS) in Scotland, and allow you to repay over a longer period of time.
These programmes involve repayment of your debts in full, and are arranged by a DAS-approved money adviser or licensed insolvency practitioner. If you’re eligible, all interest and charges on your debts will be frozen, and you benefit from a respite from creditor pressure. So how do you apply for a debt payment programme, and what impact could it have on your debt situation?
Get a rough indication of what your monthly repayments might be under each of our different debt solutions.
How to apply for a debt payment plan?
If you’re a resident of Scotland, you owe more than one debt, and are able to repay the money from surplus income, a debt payment programme may be a suitable option. Initially, you’ll need to contact a money adviser approved by the Accountant in Bankruptcy (AiB), to formally establish your eligibility. You can find a directory of approved DAS advisers on the Scotland’s Financial Health Service website, and also on the DAS Scotland website. Once you’ve made contact and arranged a meeting, you should gather together all your relevant financial documentation. This could include bank and credit card statements, personal loan agreements, and any other key information that could help the adviser establish your eligibility. It’s advisable to produce as much information on your financial situation as possible, as it’s possible that other options may be more suitable.
If DAS is appropriate for your circumstances, the adviser will calculate an affordable monthly repayment amount and decide how long the plan should last. They then make a formal proposal to your creditors, who must either accept or reject within 21 days. If they don’t respond, it’s assumed that they agree the terms. It’s worth knowing that if a creditor doesn’t approve the proposal, the plan can be put through if the money adviser believes it to be fair and reasonable. Once the proposed DPP has been accepted, the interest and additional charges on your debts will be frozen as long as you abide by the DPP terms.
One major aspect of entering into a debt payment plan is that you must have surplus income available each month to repay creditors. Your essential living expenses, such as mortgage, rent, heating and food bills will be taken into account, and the remainder divided between creditors at the agreed rate. You’ll also need to consider the potential duration of a DPP. It should be completed in a ‘reasonable’ timeframe, but your money adviser will be able to guide you on this. Scotland Debt Solutions has been working on behalf of Scottish residents in debt since 1989. Our expert team can provide more information on debt payment plans, and establish whether they represent the best option for you. Call us to arrange a free same-day meeting at one of four offices around Scotland.
Our debt report is completely easy to use and is a great starting point for anyone with over £5000 of debts looking to take control of their debt issues. By providing us with details of your incomings and outgoings we can suggest the most appropriate way forward for you.
Levels of unsecured debt in Scotland increased dramatically during 2022 as the cost of living crisis took its toll on household finances.
Close to half a million Scots are in a position of profound financial hardship, according to a new set of figures.
Disabled people in Scotland are being urged by the government to check whether they might be eligible for benefits that could help make their life a little easier.
Our Other Services
Whether you are a sole trader or a limited company director, we can help you work through your current financial problems including money owed to HMRCBusiness Debts
Sequestration is the Scottish version of bankruptcy and may be suitable for you if you do not have the money to pay back your debtsFind out More
2 Bothwell Street, Glasgow, G2 6LU
We'll give you a call
Our Scottish based team can help advise you on your debt problems.
Meet our qualified Scottish based team
100% Confidential advice
Our personalised debt report will help you better understand your financial position and see where your money is going.
Arrange a call with an expert advisor at a time to suit you or contact our team via WhatsApp for immediate help and advice.
More on DAS
We can help you with...
If you’re a Scottish resident struggling with personal debts, there are a number of solutions available to you that can appease your creditors and put you on the path to financial recovery.Find out More
A Debt Arrangement Scheme (DAS) lets you pay off your debt through a series of manageable instalments over a reasonable length of time.Find out More
Our Insolvency Practitioners are regulated by ICAS or the IPA and our firm is authorised and regulated by the Financial Conduct Authority
Fees and Information: There are fees associated with our services. These will be fully explained before entering into any of the personal debt solutions referred to on this website. Full details of our fees and how these are charged are fully explained to you prior to you committing to any particular service.