Debt Arrangement Schemes

A Debt Arrangement Scheme (DAS) is a statutory programme run by the Scottish Government.

It is designed to allow those in debt to more than one creditor to re-pay their debts over a longer period of time, in lower monthly payments that are more affordable.

Legal protection from your lenders

It is a legally binding payment plan to protect you from your lenders and prevents you from getting hassle from your creditors.

Applications for a Debt Arrangement Scheme can be made through Citizens Advice Scotland. DAS are not suitable for everyone. Before applying for a DAS speak to a debt advisor from Debt Advisory Line. 

Benefits

  • Repay only what you can afford to pay per month
  • Freeze interest and charges on your debt*
  • Does not require you to release equity from your home

*Interest and charges can only be frozen on unsecured debts within the DAS.  Advice can be obtained from Citizens Advice Scotland. Your credit rating may be affected for six years.


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What is a Debt Arrangement Scheme?

A DAS is designed to suit your needs and, based on your income and outgoings, a DAS administrator will decide on a lower monthly payment that you can afford to take some of the stress and worry away from you. You will have no further contact with your creditors and, in most cases, they will agree to freeze interest on your debts. 

Your DAS will continue as long as it takes to pay off your debt, and should your situation change, you can increase or decrease your monthly payments at any time or pay off a lump sum. Typically, a DAS can last anything from 3 to 8 years, sometimes more, depending on the amount of debt you have.

How a Debt Arrangement Scheme Works?

Providing you qualify for a DAS, the administrator will look at your monthly income and outgoings and decide on a monthly payment that you can afford to pay. The administrator will then contact your lenders on your behalf and discuss your financial situation with them.

They will have 21 days to accept or reject the plan, and providing they agree, the interest on the debt will be frozen and you'll pay only what you can afford each month until the debt is paid off. Providing you stick to these monthly payments, you are then protected from bankruptcy or from your creditors enforcing your debts.

You must maintain your DAS to keep yourself protected from lenders. If you fail to meet the monthly payments, your lenders can put the interest back on your debt leaving you with more to payback.

What are the advantages of a DAS?

  • You will repay only what you can afford each month
  • In most cases interest on your debts will be frozen by your creditors
  • You will be able to take control over your debts
  • No further hassle from your lenders and protection against them.


What are the Disadvantages of a DAS?

  • Although there are many benefits to a DAS, as with some debt solutions, your credit rating will be affected for six years. This is because you won't be making the repayments you originally agreed with your creditors.
  • Your details will be stored on the DAS register. This may make it difficult for you to get credit whilst you are on the scheme.
  • It may be difficult to obtain credit in the short, medium and long term.
  • It may take longer to repay your debt, and you will end up paying it all back.

Things to remember

Lowering your monthly payments does mean you will be paying your debt back for longer, but it's about making it more manageable so that you're not at risk of your lenders taking legal action against you for missed or late payments.


You may qualify for a DAS but it may be decided that another option is better for you, depending on the amount of debt you have and other factors. We have experience in other debt plans including Trust Deed and Sequestration so, if you do not qualify, we will find an alternative plan for you.

Debt Arrangement Scheme FAQ's

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