ADVANTAGES OF THE DEBT ARRANGEMENT SCHEME

• your personal financial advisor is responsible for dealing with creditors, bailiffs and collection agencies, no one has the right to harass you anymore
• under your DAS you pay one affordable instalment towards all your debts
• all creditor actions against you are suspended
• you can freeze all interest, fees and other additional costs of debt management
• you can repay your debt earlier than agreed
• in the event of financial difficulties, the programmes can be suspended for a period of one month, up to a maximum of two times per year
• in case of serious problems (long-term illness, loss of job) repayment can be suspended for six months
• your home remains your property
• any legitimate reduction in your income or increase in your costs can be taken into account when changing your repayments
• DAS does not require all creditors to accept the scheme

WHAT YOU NEED TO BEAR IN MIND

• The DAS is for a maximum of 10, in special circumstances 12 years. If repaying your debts over this period is beyond your means, this scheme is discouraged
• the scheme supports debts up to £6,000, for larger debts we suggest other solutions
• the scheme is designed for people on a fixed income but...
• you can apply for DAS if you are not working but your partner is
• your Centre of Interest in Life (COMI) must have been in Scotland for at least 12 months
• if you are worried about your mortgage, secured loans and rent arrears they may not be included in your DPP
  applying for a DAS or other solution with several companies at the same time will create confusion and make your financial adviser's job more difficult
• if your repayment scheme is not fully approved, some creditors may charge extra interest
• DAS can have a negative impact on your credit rating
• if you cancel the DAS creditors may cancel payment arrangements under the DPP. You lose protection under the DPP and creditors are again entitled to pursue you to recover debts
• Your DAS may be rejected by your creditors. It is then worth considering another alternative, such as a Protected Trust Deed or Sequestration
• your DAS appears on a public register
• DAS only covers debts arising in the UK
• Your Money Adviser will be paid for their work in preparing your application and creating a repayment scheme. The application fee is legally set at 2% of the total debt, while the payment distribution fee cannot exceed more than 8% of the total debt. In total, your Advisor cannot earn more than 10% of the total amount of your debt