What is the Debt Arrangement Scheme?

The Debt Arrangement Scheme was introduced by the Scottish Government to help people affordably resolve their debts. Those signing up to the scheme pay regular monthly fees into a debt payment programme. In turn, this money is divided up and sent to creditors. Here, we’ve detailed just about everything you need to know about the scheme.

What is the Debt Arrangement Scheme?

Similar to trust deeds, the Debt Arrangement Scheme (DAS) is only available to residents of Scotland. Those residing in other parts of the country may wish to investigate solutions such as an IVA.

Under the scheme, as well as making payments to your lenders, interest rates are frozen and these groups are prevented from taking legal action against you. Although we cannot assist in the setting up of the Debt Arrangement Scheme, we can advise you on how to best get on top of your finances.

The Debt Arrangement Scheme is only available in Scotland. If you’re based in other parts of the UK, this solution is not available for you.

Would I qualify for the scheme?

To qualify for the Debt Arrangement Scheme, you should have more than one creditor and live in Scotland. Furthermore, you:

  • After meeting basic obligations, should have enough disposable income to make monthly payments.
  • Have sought the services of a DAS-approved advisor to set up the scheme.

However, if you are already undergoing a form of insolvency – such as bankruptcy or protected trust deed – you would not be eligible for the service.

Is DAS the right option for me?

A Debt Arrangement Scheme has several advantages over other financial solutions. For example, a DAS generally allows you greater control of your assets. This means, in many cases, you won’t need to sell your home or car.

Furthermore, as interest rates and charges are frozen during the scheme, your debts should be cleared once the DAS ends.

What differs between individuals, however, is the length of the policy. As it allows you to clear your debts in a “reasonable time”, the advisor in charge of implementing the scheme will identify how long this should be.

Once the time frame has been agreed, affordable monthly fees will need to be paid. Yet, if this is temporarily affected – such as in the case of redundancy – you can apply for a payment break to compensate.

In the first quarter of 2019, more than 700 Debt Arrangement Schemes were approved.

What other options are available?

The Debt Arrangement Scheme is just one solution for regaining control of your finances. As this must be set up by a qualified professional, you will need to get expert advice before proceeding with your application.

Contact us and we’ll be happy to discuss your circumstances. With no obligation on your part, we can evaluate your financial situation and recommend a solution which is right for you. To start getting on top of your debts, contact us through the button below:


Why choose us?

  • More than 15 years’ experience across our companies in dealing with debt.
  • We've helped 15 328* people in the UK start their journey towards financial freedom.
  • On average, we write off £10,500** per client.
  • 120 staff members are here and ready to support you.

* as of 02/02/21.
**Average debt anticipated to be written off for IVAs approved between 1 January 2020 and 31 December 2020 is £10,568, based upon successful completion.

Debt Arrangement Scheme FAQs

How does this affect credit ratings?

How does this affect credit ratings?

The Debt Arrangement Scheme will have a negative impact on your credit report. Although your score may be low already, details of the scheme will be active on your file for at least six years from when you agreed the policy.

During this time, you will find it hard to obtain loans or other financial products.

Debt Arrangement Scheme advantages

Debt Arrangement Scheme advantages

There are several advantages to the Debt Arrangement Scheme. For example:

  • Interest and charges are frozen while the scheme is active
  • Creditors are prevented from taking legal action against you
  • Your assets are protected

Debt Arrangement Scheme disadvantages

Debt Arrangement Scheme disadvantages

There are several disadvantages to the Debt Arrangement Scheme. For example:

  • You’ll have to budget carefully to ensure payments continue to be made to the scheme
  • Your credit rating will be negatively affected
  • You will find it very hard to obtain more or lines of credit while the scheme is active

How long does a Debt Arrangement Scheme last?

How long does a Debt Arrangement Scheme last?

There is no definitive end date for the Debt Arrangement Scheme and, ultimately, it ends when your creditors are paid. Generally, you should expect it to last for no longer than 10 years.