Regaining the sense of Control for Your Debt

The debt arrangement scheme is a financial approach that focuses on the creation of debt management strategies. This government scheme Scotland started in 1990. It entitles people who are having financial difficulty to help with clearing their debts.

This scheme is designed to provide support for individuals who have financial burdens due to debts. It serves as a voluntary agreement between the creditor and the client. The das is given by the debt companies, which are based according to the government law.

Advantages and Disadvantages of Debt Arrangement Scheme

If you are living in Scotland, and you are having trouble with your unsecured loans, then this scheme will resolve your burdens. The das is referred as a statutory approach programmed to enable eligible debtors to pay their loans on an extended period of time.

However, there are few things that you need to consider before you discuss this matter to the das approved money adviser. These include the pros and cons of utilising the government scheme Scotland:


1. This scheme will not allow the creditors to tail you for the money you owe.

2. Your assets including your home will be protected. The das will not affect your home but still you need to take the responsibility for paying the mortgages and rent.

3. The interest of your loan including other charges will be frozen. It means that your debts will not increase while you are paying it.

4. The das will allow you to pay the maximum amount that you can afford for every month. The amount is based on your remaining accounts after repaying all significant expenses including the bills, necessities, mortgages, and monthly rentals.


1. Using the das will help you manage your debt payment plans but this will not solve your credit rating. Despite of its influences to your debts, the government scheme Scotland will not let you offset from the default repayment agreements to your local lender. Moreover, your name will be listed in the scheme register. This will prohibit you from having another loan. Otherwise, you have to repay your debts completely.

2. The repayment period will be lengthened. This is because you are paying lower monthly balances.

3. Other debt resolutions have time frame. This includes the Individual Voluntary Agreement of IVA. The das will end after your debts are completely paid.

Importance of Implementing Debt Arrangement Scheme

This government scheme Scotland aims to provide alternatives for residents who have problems with paying their debts. It becomes effective if repaying your debts become excessive.

This tool is designed to prevent you from incurring serious consequences, which may affect your financial status. The importance of das is in providing you with these three essential benefits:

1. The das will fix your debt problems. Once you have been accepted for new debt payment plan, your lenders will not make any action against you.

2. It the das plan has been accepted, all charges and interest rates of your loan will be frozen. This will ensure each payment you make will be deducted from the the main debt.

3. This will protect your assets and allow you to repay based on the amount that you can afford. There is no need for you to meet the minimum monthly balance, as long as your das application is approved.

Frequently Asked Questions about Debt Arrangement Scheme

How does this works?

The government law of Scotland emphasises this approach along with the Debt Payment Programme or DPP. It works to provide you with alternatives for creating your debt payment plan.

Is this scheme right for me?

The das is programmed to help people who are having trouble with repaying their unsecured debts, but still can afford to pay the loaned amount within the realistic period of time.

Are my assets will be protected with das?

Once your application for this scheme is approved, your lenders will not have the authority to pursue you for the money you owe them. Your assets will be protected but you still need to repay your monthly expenses including the rents and mortgages.

Since I am protected by this scheme, can I still apply for another loan?

No. Once your name is listed in the das register, you will not be allowed to make another loan unless you have fully paid your previous debts.

Can this solve my credit ratings?

No. Your credit ratings will not change even if you are implementing this scheme. This approach is only designed to help out individuals who can't afford to pay their monthly minimum balances.

As a conclusion, anyone who is having difficulty with repaying the debts should consider a new debt management plan. With this, it will bring out the potential of fulfilling the responsibility for paying out the loaned amount.