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. One of the most common debt-help procedures is a debt arrangement scheme –commonly referred to as a DAS or Debt Payment Plan .It carries a number of benefits for those who simply cannot afford to pay their debts.
If you’re in the position where debts are uncontrollable and creditors are chasing and hassling you for payment whilst interest fees and charges are accruing, it’s time to draw a line in the sand and start rebuilding your finances. Our insolvency experts specialise in helping indebted Scottish residents and, by analysing your circumstances through a quick, free consultation, we can help you towards a debt-free future.
If you’re considering a debt arrangement scheme, the following list of key advantages will make for interesting reading…
• DAS is not insolvency.
It is a statutory repayment plan which allows you to repay your debts in full over a reasonable period of time paying an affordable amount.
• Single Monthly/Weekly Payment
Having a consolidated monthly/weekly payment structure can be a huge relief and much easier to keep on top of in contrast to juggling multiple payments for numerous different creditors. A debt arrangement scheme allows you to make a single, affordable payment every month or week that is distributed to your various creditors.
• Interest & Charges Frozen
Once the debt arrangement scheme has been applied for, any interest will be frozen so you needn’t worry about your debts escalating further at high rates of interest.
Any creditor bound by the Debt Arrangement Scheme will not be able to chase, hassle or take legal action against you once the Debt Payment Plan has been approved. They should, in theory, stop contacting you and will be instructed to do so. Should any creditor continue to pursue you then you will be able to advise your DAS approved Money Advisor who will contact them to stop any further contact with you.
• Your Home
You do not have to include any of your assets in your Debt payment plan. Unlike in sequestration or Trust Deeds. It may be that you require a period of time to sell you property or a second property. Once you have done so then you can use a lump sum to pay into your Debt Payment Plan to pay of your debts in full and shorten the length of the plan.
You are able to apply for a variation in your debt payment plan by advising your DAS Approved Money Advisor that you have had a change in circumstance. This could be to increase or decrease your payment or shorten or lengthen the duration of your debt payment plan. You can also apply for a six month payment break should you have a change in circumstance. This is subject to certain criteria such as a 50% income shock, maternity, paternity etc.