Debt Arrangement Scheme

The Debt Arrangement Scheme (DAS) is a formal debt management plan that was introduced by the government. It was designed to help people in financial difficulty in Scotland achieve a debt free future.  If you are struggling with your monthly debt repayments, but feel you could repay what you owe given enough time, the Debt Arrangement Scheme may be an option for you.

At KPMG, we’re here to help you at every step along the way. When you contact our advisers, we will run you through a simple budget, allowing us to understand your full financial situation.

We will then work with you to agree how much you can afford to pay towards your debt each month, and outline how long it will take for you to repay your debt in full. If the Debt Arrangement Scheme is not suitable for you situation, we’ll let you know what other options are available to you.

If you qualify for the Debt Arrangement Scheme, KPMG will deal with your creditors, taking the stress out of the situation. The interest on your debt will be frozen, and written off after your agreed payment plan has come to an end.

Book a Callback

If you would like more information on the Debt Arrangement Scheme, book a call back with one of our advisers above, or call us on 0141 300 5656.

What are the Advantages?

There are many advantages of the Debt Arrangement Scheme, a few are:

• You will receive a personalised debt repayment plan based on your needs and lifestyle. 
• Your monthly payments will be based on what you can afford.
  
• The interest on your debt will be frozen.
• You will be protected against creditor action.
• Your assets will be protected meaning you will not be asked to sell your house, or your car.
• We will deal with creditors on your behalf.

What are the Disadvantages?

If you think the Debt Arrangement Scheme could help you, you may wish to consider: 

• You will be subject to certain conditions.  These include making all payments towards your Debt Payment Plan, and paying your monthly expenditure and bills when they fall due. If you fail to do so, your plan could be revoked. 
• You will be unable to obtain credit or use an overdraft while you are in a Debt Payment Plan.
  
• Your credit rating will be affected. 

Who Can Apply?

The Debt Arrangement Scheme is available to any individual (or couple) living in Scotland that is struggling with unsecured debt (with a small number of exceptions). To find out if you are eligible, contact KPMG today, and we will fully assess your situation.  

You cannot apply if:

• You are in a Protected Trust Deed.
• You have been declared bankrupt, and have not yet been discharged.
• You are subject to a time to pay direction or order. 
• You are paying debts under a conjoined arrestment order.

What Debts are Included?

The Debt Arrangement Scheme covers unsecured debts, for example credit cards, store cards and catalogue debts, overdrafts, unsecured loans, payday loans and debt owed to HMRC. It also includes arrears on your mortgage, rent, utilities or council tax.

Will People Find Out?

Details of your Debt Payment Plan will be placed on the DAS Register (available online) and will remain there until your payment plan is complete. Although this register can be accessed by anyone, it is unlikely that people you know will find out unless you choose to tell them.

Will my House, Car and Personal Possessions be Affected?

Your home will not be included regardless of its value.  However, if you have significant equity in your property, it may be worth considering whether you have alternative means of raising funds to reduce your debts.

Your car will also be excluded, however, if it is of high value you may want to consider replacing this with a lower cost alternative to help reduce your debt level.

Your household goods such as furniture, computers and electrical equipment will not be taken into consideration. However, if you own property in addition to your own home, have investments or savings, or any non-essential household items of value (such as jewellery or antiques) you may want to consider using these to reduce your debt level.

Can I Still Have a Bank Account? Will my Credit File be Affected?

You can still use a bank account while you are involved in the Debt Arrangement Scheme; however, you will not be able to use an overdraft facility.

Your credit file will be updated to show that you have entered into a Debt Payment Plan. This means you will not be able to obtain credit during your Debt Payment Plan. It may be difficult for you to get credit for some time after you have completed your Debt Payment Plan as it may take a number of years before this drops off your credit file.  

Contact Us Today

KPMG has helped thousands of people in Scotland become debt free over the past 20 years. We have provided support to clients with debt ranging from council tax arrears to credit card debt to mortgage arrears.  Whatever the source of your debt, we can help you find a way out.

If you would like more information on the Debt Arrangement Scheme, book a call back with one of our advisers today, or call us on 0141 300 5656.

Alternatively, find out more about the other formal debt solutions available such as Protected Trust Deeds, and Bankruptcy.

Book a Callback