Debt Consolidation Loans

  • ☰ HOME
  • ☊ APPLY ONLINE NOW
  • ? DEBT FAQs
  • ✍ OTHER SOLUTIONS
    • IVA Individual Voluntary Arrangements
    • Debt Relief Order DROs
    • Debt Arrangement Schemes
    • Scottish Trust Deeds
    • Bankruptcy
    • Business Debt Consolidation
  • ✔ ABOUT US
  • ☎ CONTACT US

Debt Arrangement Schemes Or DAS An Introduction

08/12/2011 by Brian Talbot



debt arrangement scheme picScottish residents in debt have a debt arrangement scheme at their disposal as Scottish people have not been immune to the effects of the global financial crisis.

Many of them are finding it difficult to make ends meet and others have already slid into debt.

Before the debt situation becomes irreversible, these consumers should explore the debt solutions available to Scottish residents.

A Debt Arrangement Scheme (DAS) is a popular option offered by the Scottish government.

What Is A DAS?

The statutory debt management schemes referred to as a Debt Arrangement Scheme was created to help Scottish residents repay previously unmanageable unsecured debts. Under this program, individuals repay the money they owe at a manageable pace.

An accredited Money Adviser helps an individual develop a DAS Debt Payment Program (DPP). This plan details how much the individual can afford to pay each month toward unsecured debts. It also illustrates how long it will take the person to repay the debts in full at that payment amount.

The monthly payments established through the DPP are based on the amount the individual can afford after expenses for rent/mortgage, food, and regular monthly bills are taken into account.

In addition to the repayment proposal, the Money Advisor helps the individual develop a household budget. This enables the person to live in an affordable manner during and after the time the DAS is in effect.

Who Qualifies For A Debt Arrangement Scheme?

To be considered qualified for a DAS, the individual must be a resident of Scotland and have at least two unsecured debts that cannot be repaid under the original creditor agreements.

How The Debt Payment Program Works

The Debt Payment Program developed with the help of the Money Advisor is a legally binding debt management plan. The approved Money Adviser speaks with creditors on behalf of the individual, requesting that they agree to the DPP terms.

Creditors are given time to respond and those who do not are treated as if they had agreed and will be bound by the DPP. Lenders are usually required to approve the DPP before it can be finalized.

However, in some cases, an Accountant in Bankruptcy who serves as the DAS Administrator may approve the arrangement even after the lenders decline the Debt Payment Program. This is done in cases when it seems reasonable and fair to accept the arrangement.

Once the DAS has been approved, the Money Adviser appoints someone as the Payment Distributor. This individual accepts a single monthly payment from the debtor and allocates the agreed amount to each creditor based on the arrangements within the DPP.

As long as an individual continues to make payments under the Debt Arrangement Scheme DPP as agreed, he or she is protected from additional action by a creditor.

Creditors cannot petition for sequestration and only payments arranged through the DPP must be made. The DPP usually lasts until covered debts have been completely repaid. However, a change in circumstances can alter this general rule. The DPP could also end if another debt repayment option becomes more feasible.



Advantages To The Debt Arrangement Scheme

A DAS is designed for people who are struggling with debt and want to do something about it without writing off the debt balances. Individuals who know they can repay the debts in full but need more time than creditors initially provide can get the additional time they need through a DAS.

They pay only what they can afford, based on the money remaining after living expenses are paid. Interest and other charges are frozen under the DPP, preventing additional debt from accumulating.

An individual with a  Debt Arrangement Scheme may continue residing in his or her home as long as rent or mortgage payments continue. This arrangement does not require any equity to be released from the property, as is the case with other types of debt solutions.

The home is also not at risk of being repossessed under this program. This aspect of the DAS is what makes it more appealing than some other debt solutions.

Disadvantages Of DAS

A Debt Arrangement Scheme is not without its downsides, which are clarified by the Money Adviser when exploring this option. Since repayments will not be made according to the original creditor agreements, the credit rating of the individual will be affected.

The details regarding the DPP are reported on the DAS register, which will affect the ability to obtain additional credit in the future.

Taking longer to repay existing debts means it will be a longer time before the individual is debt-free. While other debt solutions, like an Individual Voluntary Arrangement, have a specified timeframe, a DAS does not end until all debts have been repaid.

This can be frustrating for people who just want to move on with their lives. However, a DAS is generally a more attractive solution than more extreme measures because the negative effects are not as long lasting.

DAS Vs. Sequestration

In Scotland, bankruptcy is also referred to as sequestration and it is the alternative to a Debt Arrangement Scheme. Both help consumers manage debt. but each one is designed for a different situation, which makes it impossible to say whether one is better than the other. The true question is which debt solution is more appropriate for the individual.

People who have multiple unsecured debts that they can afford to repay over time generally prefer a DAS. Those who cannot afford to fully repay existing debts within a reasonable timeframe usually opt for sequestration.

Bankruptcy involves handing the estate over to a trustee who can sell some or all of the assets to cover repay debts and cover the bankruptcy. Any unsecured debts that remain at the conclusion of this process are written off by the trustee and creditors.

Any debt solution has consequences, and a debt advisor can explain these as well as the positive aspects of programs like the Debt Arrangement Scheme. With full knowledge of each option, Scottish residents will be able to make a well-informed debt management decision.

In many cases, any consequences will be worth the result of becoming debt-free.

The Official Scottish Government DAS Video Can Be Viewed Below:

[youtube]http://www.youtube.com/watch?v=2EhpDD3TV98[/youtube].



Filed Under: Debt Arrangement Scheme DAS

Our Panel Of Lenders Include:

Free Debt Report Download

Download your full guide to the solutions available.

Download guide

Popular Content

  • How Long Can a UK Court Claim Debt?
  • The Increasing Costs of Home Ownership and Managing a Household
  • Debt consolidation loans unsecured uk made simple
  • Earn Money While Saving It At The Same Time
  • What Are the Benefits of Filing for Bankruptcy?
  • What Can I Do If a Debt Collection Agency is Hassling Me?
  • Debt consolidation help for those considering a consolidation loan
  • Reducing Energy Use In The Bedroom
  • How Should I Handle Being Threatened With Bailiffs?
  • How Do Credit Inquiries Affect My Credit Rating?
  • Tips To Save While Christmas Shopping
  • Can I Consolidate Debt Into a Mortgage?
  • Budgeting Tips For Students
  • Should I Get a Debt Consolidation Loan or Apply for a Lower Interest Credit Card and Transfer the Debt?
  • What Happens If My Spouse Dies In Debt?
  • Advantages And Disadvantages Of A Debt Arrangement Scheme
  • What Happens To U.S. Medical Debt When I Live In UK?
  • Debt advice in London numbers and contacts
  • What Happens When Someone Dies in Debt, but Has Left Money in Trust?
  • How Do You Know If You Are on the Bad Debt List?
  • How Long Does It Take for Negatives to Fall Off My Credit Report?
  • How Will My Partner’s Bad Credit Affect Our Ability for Joint Purchases?
  • What is a CAB or Citizens Advice Bureau?
  • How Will Paying Extra Money On My Mortgage Every Month Help Lower My Debt?
  • Will An Overdraft Count On My Credit Report If I Do Not Pay It Off?
  • Debt Relief Orders DROs Explained In Detail
  • Advantages And Disadvantages Of A Debt Relief Order DRO
  • Ways To Avoid The Savings Crisis
  • Making Sure Your Debt Consolidation Service Keeps Your Information Confidential
  • Can A Bailiff Demand More Money If You Already Are Making Payments?
  • Tips for Reducing Car Insurance Costs
  • Debt Arrangement Schemes Or DAS An Introduction
  • Saving Money On Pet Care- Simple Ideas That Make A Difference
  • What Happens When I Marry Someone in Debt?
  • Payday Loan Rates Out Of Control
  • Debt consolidation loans online and online debt consolidation discussed
  • Who Should I Get to Cosign a Debt Consolidation Loan?
  • What Agency, If Any, Oversees Debt Collection Agencies In The UK?
  • I Cannot Afford to Pay Off My Payday Loan, What Do I Do?
  • Saving Loved Ones From Paying Inheritance Tax
  • What Type of Credit Cards Can I Get After Bankruptcy?
  • How Can I Protect Myself from Falling Behind if I Lose My Job?
  • My Ex Owes Utility Companies at My Address, What Can I Do?
  • Save Money On Reputable Legal Advice
  • Top Ways To Cut Your Hair Care Costs
  • Purchasing A Home To Save Money
  • How Long Will It Take to Rebuild My Credit Rating?
  • What Are the Best Low Interest Credit Cards for Someone with Bad Credit?
  • Debt Consolidation or Debt Management Service?
  • Savings Tips For Those Who Wait And See
  • How Will a Debt Relief Order Affect My Ability to Get Future Credit?
  • How Can You Make an Offer of Payment to a Debt Company?
  • What Are The Best Ways To Raise My Credit Rating?
  • How to Get a Loan with Bad Credit
  • How Do I Consolidate My Student Loans?
  • Advantages And Disadvantages Of Individual Voluntary Arrangements IVAs
  • Save Money On Holiday Entertaining
  • How Do I Clear My Name from My Partner’s Debt?
  • Debt advice in Hull numbers and contacts
  • Advantages And Disadvantages Of Scottish Trust Deeds
  • Can I Remove a CCJ from My Credit Report?
  • Easy Ways To Save Money While Gardening
  • Top Ways To Save Money Fast
  • Would Voluntary Repossession of My Home Prevent Me from Getting a Debt Relief Order for Unsecured Debt?
  • Debt advice in Manchester phone numbers and contact details
  • Will My Bad Credit Affect My Ability to Get a Job?
  • Can A Debt Collection Agency Take Me To Court?
  • Substantial Savings With Regular Saver Accounts
  • Bankruptcy In The UK And How It Works
  • Getting More Food On A Limited Budget
  • Government debt consolidation loans and how they work
  • What Happens When I Stop Paying My Credit Cards?
  • Save Money on Groceries
  • How Can I Check My Credit Report?
  • Types of Debt that Qualify for Debt Consolidation
  • Are Payday Loans Good for People in Debt?
  • Should I Liquidate Assets to Pay Off Debt?
  • I Have Been Contacted About a 10-Year Old Debt, What Should I Do?
  • Facts You Should Know about Debt Management Programs and Debt Consolidation
  • Unsecured debt consolidation loans discussed
| Terms & Conditions | Privacy Policy | Site Map | XML Site Map | For Homeowners With Bad Credit|

COPYRIGHT © 2011 – 2021 Money Marvel


This website is provided as an independent marketing website. We are neither a lender or an independent financial adviser and as such are unable to offer financial advice. Enquiries generated via this site are passed on to independent financial advisers and loans brokers. Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

Money Marvel, 4 Camino Condesa, Fuengirola, 29640, Spain
The server time is 04:17:58am