Debt Arrangement Scheme

There is no fixed length for a Debt Arrangement Scheme. The duration depends on how much you owe and what you can realistically afford to repay each month. Some Debt Payment Programmes last only a few years, while others may continue for longer.

Because your monthly payment is based on what you can afford after covering your essential living costs, the aim is to create a repayment plan that is both manageable and sustainable.

If you’d like to understand how long a DAS might last in your circumstances, our experienced advisers can provide personalised guidance.

If your DAS is likely to last significantly longer than 4 years, it could be sensible to consider an alternative option such as a Protected Trust Deed or Sequestration where some of the debt may be written off.

Yes. A DAS is likely to affect your credit rating because it is a formal debt solution and it will be recorded on your credit file. This may make it more difficult to obtain credit whilst you are in the programme and for a period afterwards.

However, for many people, the priority is regaining control of their finances and dealing with unaffordable debt in a structured way. Once your DAS has ended, you can begin rebuilding your financial position and creditor history.

One of the big advantages of a Debt Arrangement Scheme over an insolvency process like a Protected Trust Deed or Sequestration is that it does not take your assets into account. Therefore your property is not affected by DAS and this is often one of the main reasons why someone may choose DAS over an insolvency alternative.

Once your DAS have been approved, creditors whose debts are included in the plan are prevented from taking any further enforcement action against you, provided you continue to meet the terms of the DAS.

You may still receive routine correspondence relating to your account, but generally speaking creditor contact will reduce over time.

If you are in arrears with your council tax payments, then yes, your arrears will be included as one of the debt in the DAS. When calculating what you can afford to pay to the DAS each month, your adviser will factor in all your ongoing liabilities, including your council tax. Once of the conditions of DAS is that you maintain payment to your ongoing liabilities, so whilst your council tax arrears will be included in the plan, you need to continue paying your council tax going forward.

Life doesn’t always go according to plan, and your financial circumstances may change whilst you’re in a Debt Arrangement Scheme. If your income does change, it’s important to let your adviser know as soon as possible.

DAS is flexible and in many cases your payment plan can be adjusted to reflect your new circumstances. The most appropriate course of action will depend upon the nature of the change and your overall financial position. Keeping in contact with your money adviser means we can help you through any changes.

You can request your DAS is revoked (brought to an end) however if you have not successfully completed the payment plan, then the interest and charges which had been frozen until this point could be added back on to the debt which is still outstanding. This decision is at the discretion of your creditors.

If your circumstances change or if you’re finding it difficult to maintain your payments, don’t struggle on alone. Reach out to our experienced advisers who can review your situation, discuss possible variations or payment breaks, or consider whether an alternative solution may now be more appropriate for you.

Neither solution is inherently “better”. The best option for you depends entirely upon your financial circumstances, your income, your assets and what you’re hoping to achieve.

A Debt Arrangement Scheme allows you to repay your debts in full over time through one affordable monthly payment, without involving any of your assets. A Protected Trust Deed could potentially allow you to become free of your debts in a shorter time period, depending upon your circumstances, however it does have additional implications if you own assets such as a car or property.

The best way to understand which option is best for you is to seek personalised and tailored advice from a qualified and regulated debt adviser. We’ll explain the advantages and disadvantages of each solution in plain English, helping you make an informed decision with confidence.