A new initiative by the Scottish Government to raise awareness of the existing Debt Arrangement Scheme is designed to help the many Scots who currently find themselves with debt problems and provide a practical and workable method to resolve their financial difficulties.
The Debt Arrangement Scheme, often referred to as DAS, is a debt solution tool which enables people to repay their debts over a longer period of time and importantly at a repayment level they can afford. Other important aspects of the scheme include freezing of interest and charges and the fact that it gives people protection from their creditors taking legal action against them.
The concept behind the scheme is to stop the pressure, worry, stress and anxiety that debt causes thousands of Scots every year and provide a proven method of resolving their debt problems. Under the scheme people agree to a debt payment plan which is based on what they can reasonably afford.
The Debt Arrangement Scheme works on a simple basis which consists of a single regular payment to an official payments distributor who in turn makes the individual payments to all the creditors. The scheme is flexible enough to take account of changes in personal circumstances and allows people to apply to vary their payments if required.
This is the only Scottish Government backed debt solution scheme that helps people to resolve their debt problems within a structured legal framework that gives them the protection and breathing space they need to move out of what can often seem an impossible situation for the people involved.