Debt Arrangement Scheme
An alternative debt solution in Scotland is the Debt Arrangement Scheme (DAS). This is a government-run debt management tool that allows you to repay your debts through a Debt Payment Programme (DPP).
How does a Debt Payment Programme (DPP) work?
Similar to a Debt Management Plan, a DPP in Scotland allows you to pay off your debts over an extended period of time, with protection from your creditors. A DPP can last for any reasonable length of time and, if approved, all interest, fees and charges on the debt will be frozen. You'll also be protected from any legal action by your creditors to recover what you owe them.
It's also possible to change the amount you pay to the DPP, or allow up to a six month suspension of payments if you suffer a temporary period of reduced income. However, the DPP will last until your debts are cleared, and could be revoked if you have missed two payments and a third is due. If it is revoked, you’ll be liable for all interest, penalties and other charges that would have been payable had the DPP not been approved.
Could I apply for a DPP?
To qualify to enter a DPP, you must:
- Be resident in Scotland
- Have one or more debts that you’re struggling to repay
- Have a reasonable level of spare income available to repay your debts, after paying for your basic living expenses
Call Payplan free on 0800 280 2816 or use our online Debt Help Form for free advice on debt solutions in Scotland.
Our Scottish site, Debt Help Scotland, has further reading on Debt Arrangement Schemes and more.