This is a debt relief solution available only in Scotland. Allows you to apply for a debt repayment program (DPP) that helps pay off debts by making affordable monthly payments. This is a legal solution that can only be carried out by an approved organization, such as StepChange Debt Charity. The duration of the DAS depends on the amount of your debt and the so-called the financial surplus each month to pay off the debt. DAS can only be carried out if you are able to pay back what you owe within a reasonable time, which is usually less than ten years. The repayment plan ends when you make all payments and the debts are settled, or if you pay off the debt with a lump sum.
Advantages of DAS:
- All interest and charges will be frozen
- Creditors can not continue to contact you or continue to collect debts
- If your financial situation changes, you can apply for a change in the payment amount or a six-month break in payments
- At the end of the DAS, all your debts will be redeemed
Disadvantages of DAS:
- 10% of your monthly instalment is treated as the fixed costs of running the program
- You may have to sell your car or convert to a cheaper model
- After going through DAS, your data will be placed in the public register. It is an online register that anyone can access
- If you do not pay for your payments, the DAS may be broken and creditors may charge interest or take further action against you
- DAS may affect your credit score
Where DAS is available, there may be other options that are available and suitable for you.