Debt Arrangement Scheme

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Uncontrolled debts can lead to constant stress, threatening communications and unbearable financial pressure. Not to fret, solutions exist which can give you back control over your financial future.

If you live in Scotland, such a solution includes the Debt Arrangement Scheme (DAS).

What is a Debt Arrangement Scheme?

A DAS is a government-backed scheme available to Scottish residents, which supports individuals as they tackle and repay their debts. Not only does it lead families and companies to financial recovery, it also provides relief from creditor pressure.

Through a DAS you can apply for a Debt Payment Programme, which gathers your debts into a single monthly payment and allows you to make those repayments over a reasonable and affordable time.

There is no set debt amount for entering a DAS, and allows you to make one payment which is then divided among your creditors. Once this process starts and your creditors have agreed to the terms of the DAS, you are protected from pressure from them. They can no longer take legal action to recover what you owe, and all interest, charges and penalties are suspended.

If you fail to abide by the terms of the arrangement, however, your creditors are no longer required to freeze these charges, and your overall debt amount may increase.

What does a Debt Arrangement Scheme entail?

If a DAS is suitable for you, you will be passed to one of our partner organisations who specialise in this Scottish procedure.

At the outset of the process, one of their experienced team members will work with you to understand your income, expenditure, and disposable income, which they will use to establish an affordable monthly payment.

The length of a DAS depends on the amount of debt you have and how much you can repay monthly. Throughout DAS, creditors will receive these regular repayments towards what you owe.

Debt Arrangement Scheme Advantages

There are many advantages to using a DAS to tackle your debt problems, making it an effective method of financial recovery.

It’s affordable

The repayment amount is decided from your disposable income, leaving you with enough money to afford your living costs during this process. If your circumstances change during the DAS, you can apply for a 6-month payment break to avoid the return of financial insecurity.

It’s secure

As a legally binding process, it protects you from creditor action through the courts to recover what is owed.

It’s final

Once you have concluded the DAS, your outstanding debts are written off, allowing you to start on a clean slate.

It offers relief

While the DAS is in place threatening correspondence from creditors will cease, allowing you some breathing space.

It is NOT insolvency

Some other forms of debt recovery require you to be declared insolvent. This is not the case with a DAS, as it protects your assets.

Your employment is unaffected

While insolvency can affect your employment status or ability to hold certain public offices, a DAS does not have the same risk. Thus, those working in legal or financial sectors will not be negatively impacted.

Debt Arrangement Scheme Disadvantages

Despite these advantages, there are still certain downsides to this debt solution. These disadvantages will include:

Length of time

Through a DAS, you are entering into a contract you must abide. Depending on your unique circumstances, you may be required to stick to these repayments over a long period. This will all be explained clearly to you before you start, leaving you free to make an informed decision based on your situation.


This debt solution is not free, and requires a monthly payment to your Payment Distributor, who will deal with creditors on your behalf. There is no upfront cost to the process, but the fee will be deducted from the monthly repayments to your creditors.

Credit rating

This solution will affect your credit score. Your use of a DAS will show up on your credit file for 6 years, meaning it may be harder for you to obtain a mortgage or access other credit during this period. The amount of money you can borrow will also be restricted during your use of the DAS.

Application limits

You may only apply for a DAS once a year, meaning that if your application is rejected you must wait 12 months to reapply.

Am I eligible to use a Debt Arrangement Scheme?

DASs are only available to those living in Scotland. If you live in England, Wales or Northern Ireland, your equivalent of this solution will be a Debt Management Plan.

This solution only has a chance of success if you have disposable income, which can be used to service your debts. If you have little or nothing left over after your essential living costs, then you are unlikely to be able to demonstrate that you can make the regular monthly repayment which allows a DAS to succeed.

The support and guidance of a professional are necessary to put a DAS in place, and by speaking to one of our experts, you will be sign posted to one of our partners who are specialists regarding DAS and they will advise you about your ability to use this solution.

How do I set up a Debt Arrangement Scheme?

Your first step is to gather the details of your financial situation and build a picture of your debts and income. One of our panel of experts will assess your eligibility and give you honest advice about your chances of success using this solution.

If you decide to proceed with this method of recovery, they will work with you to build a repayment plan that satisfies your creditors and safeguards your living costs throughout its term.