Debt Arrangement Scheme (Scotland Only)

A DAS allows you to repay your debts at an affordable rate, while still leaving you with enough money for your household bills and general living costs.

Get Debt Help

Home > Debt Solutions > Debt Arrangement Scheme

What is a Debt Arrangement Scheme?

If you live in Scotland and you’re finding it difficult to manage your debt, a Debt Arrangement Scheme is one of a number of debt solutions available to you. A Debt Arrangement Scheme (also referred to as a DAS) allows you to apply for a debt payment programme (DPP). Residents in England, Northern Ireland, and Wales have a similar option available to them, known as a Debt Management Plan (DMP). While there are some similarities between the two options, a DAS and a DMP are both different in their own way.

Get Debt Help & Advice

Our team of advisers are here to support and advise you every single step of the journey.

Get Debt Help Now

A Debt Arrangement Scheme may be suitable for someone who has money left over each month after paying his/her priority bills. It’s an option that helps you make affordable monthly payments to your non-priority debts.

A DAS allows you to repay your debts at an affordable rate, while still leaving you with enough money for your household bills and general living costs.

Before you apply for any debt solution you should consider the advantages and disadvantages of the solution and how these may impact you. Our experts will be more than happy to walk you through these and explain them in detail.

What are the advantages of a Debt Arrangement Scheme?

A DAS allows you to make regular monthly payments, calculated in accordance with your current financial situation. You will still have enough money left over to afford a reasonable standard of living, it gives you more control over your finances compared to other debt solutions. You will not have to sell your assets including your car or property, as you may have to do this with a Trust Deed or Sequestration.

The amount you pay will be evenly distributed amongst your creditors each month, part of your monthly payment will cover the fees. All interest, fees and charges that are being applied to your eligible debts will be frozen. Your creditors will be unable to contact you or take additional legal action against you. The flexibility allows you to alter your monthly payments or apply for a 6-month payment break if your financial circumstances are due to change.

Once this debt payment programme has been completed, your debts will be written off. However, it is important to remember that you will still have to pay any outstanding debts that were not included in the initial application as well as debts that aren’t eligible for inclusion within the Debt Arrangement Scheme.

What are the disadvantages of a Debt Arrangement Scheme?

After being accepted for a debt payment programme, your details will be entered into the DAS register. This is an online register that members of the public can access. A DPP will appear on your credit file for 6 years. If you fail to keep up with your monthly payments, the DAS could fall through, and your creditors (people you owe money to) may start applying interest and/or take further legal action against you.

With a DAS, depending on your debt level, you may be making repayments over a longer duration of time. You will only be allowed to borrow a limited amount of money during your DPP under the DAS. However, in reality it may be difficult to borrow any money at all.

How to apply for a Debt Arrangement Scheme

If you have decided that a DAS is the right solution for your circumstances, we will put you in contact with a professional money advisor, should you need further help or advice, we’ll be right here to help.

The money advisor will help you set up and complete the Debt Arrangement Scheme. He/she will confirm that you understand how the DAS will work. At this stage, you will have to provide details about your income, assets, debts and creditors. These will be reviewed with you, and you’ll be able to agree on an affordable monthly payment. This process will ensure that all eligible debts are included within the DAS.

How much will I have to pay for a Debt Arrangement Scheme?

DPPs under DAS can be set up by a privately licensed debt management company. Each individual company may charge a different set-up fee. Once a DPP is approved, 10% of your monthly payments will cover the running costs of the programme. This 10% fee will cover the day-to-day management, correspondence and distribution of your payments to your creditors, in addition to carrying out regular financial reviews of your circumstances. This percentage is set by law.

The amount you will pay each month is usually calculated by identifying what your disposable income will be. This is how much money you have left over after covering your main expenditure. If there is a change in circumstances, e.g. a pay rise or loss of work, this will be reviewed, and you will have the opportunity to increase or decrease your monthly payments accordingly.

Who is eligible for a Debt Arrangement Scheme?

If you want to apply for a DAS, you must meet the right criteria in order to be considered eligible. The following must be met:

• You’re able to make contributions to your debts
• You must currently live in Scotland
• You owe money to one or more creditor(s)
• Your monthly disposable income must be at least £100

You will make monthly affordable payments to your DPP under DAS. This money is distributed between the creditors that you owe money to. 10% of your monthly payment will be deducted to cover the administration costs. The payments distributor will retain 8% and 2% will be sent to the Accountant in Bankruptcy (AiB) who acts as the administrator and oversees the DAS on behalf of the Scottish Government.

What type of debt can be included in a Debt Arrangement Scheme?

A Debt Arrangement Scheme is designed to help you manage debts in a more affordable way. If you’re struggling with any of the following ‘non-priority debts’ listed below, a DAS may help you become debt free.

• Personal loans
• Pay day loans
• Credit cards
• Store cards
• Catalogues
• Overdraft, including fees and charges

There are also ‘priority debts’ which can be included within a DAS, these priority debts may include council tax arrears, benefit overpayments and utility debts such as gas, electricity or water.

There are debts which can’t be included within a DAS, such as court orders permitting to child maintenance, child support or student loans.

Is my home at risk if I take out a Debt Arrangement Scheme?

You will not have to sell your home. Other debt solutions may require you to sell your home in some scenarios.

Debt Arrangement Scheme Advice

If after reading this, you think that a Debt Arrangement Scheme would be the right solution for you, contact us to discuss this solution in more detail.

Our expert advisers will give you advice and provide you with all the relevant information needed for you to make an informed decision that’s best for your situation.

Call now on 0800 121 48 63 or use the contact form on this page.

Reviews & Testimonials

I really appreciate the support I was given regarding debt advice. I was provided with the upmost respect and there was no judgement at all. As difficult as it was to go through my situation, the advisors made me feel comfortable and were able to support me to find a solution to better manage my debts. A huge thank you to Jay and Keeley.
IB Whittaker
I was in a really bad situation due to a sad divide between my family but when I came to Refresh Debt Services, my mind was almost at complete ease. Keith Brady in particular is a lovely advisor and does his utmost to not only help, but follow each step along the way with perfect understanding of each situation. Couldn't recommend this company enough.
Michelle D'Arcy
Keith was great! constantly asked if I had any questions, made sure I understood everything, didn't rush me when I was getting information. Totally professional but also put me at ease and we even had a little joke. The weight of the world has been lifted off my shoulders. 100% recommend them.
Craig Newkland
Very very good service and advice. People at Refresh are friendly, polite and knowledgeable. Would recommend to anyone.
Linda Harvey
From the day i started my DMP the team have been more than helpful and respectful. Over the Last years i have had know reason to contact Refresh as i never had any issues with my payments ect. In the last week as my DMP has come to an end i needed advice and support with being able to show proof my DMP had come to and end and i now owe nothing, but also a huge weight lifted from my shoulders. Brenna my account manager was soo helpful and understanding and took her time to chat to me and send me all the info i had asked for. These people are not judgmental or insensitive, just helpful people trying to help you get back on track!! Thank you
jean roaach
I found refresh very helpful when I was struggling with my debts. I received monthly statements and updates on what I was paying and when things changed and was only to happy to help with any problems I had all ways pleasant on the phone and understanding. Lucky enough I am debt free thanks to refresh would highly recommended them
Keith was so helpful! Made me feel very comfortable to talk to him about the help I needed. Would recommend anyone who is struggling to talk to him! Fantastic service! Couldn’t be more grateful of his time and help!
Keith was absolutely brilliant. I was a victim of a sophisticated Bitcoin scam which has been largely responsible for my present financial predicament and I feel embarrassed and ashamed that I allowed this to happen to me.As a result I was really scared as I began to think that everything was fraudulent including Debt Management agencies. Right from the start I felt safe and reassured with Keith. He not only knew his stuff but validated my feelings and perceptions, was not at all judgemental and his concern and empathy were genuine with marked social, psychological and emotional intelligence and sensitivity. For the first time since I realised I had been scammed I could sleep. I felt protected and I still do. He would make a very good psychiatrist.
From the moment I spoke to Keith he put me at ease. He professionally took me through the possible steps, answering any questions that I had and his empathy and reassurance was very appreciated. Once I came to a final decision on what I needed Keith again answered any other questions and quickly put the plan into action. Honestly I had spent so many days/nights worrying about the debts once I had finished talking to Keith I felt like a huge weight was lifted from My shoulders!! I can’t thank Keith enough for taking the time to listen and then implement the plan for me! 10/10
Zdenka Suchankova
Its a very friendly staff, just 5:45 I wait for next phone call and now its a5:50 and nobody call me. Something wrong?

News, Updates & Events


Temporary Relief From Council Tax

Temporary relief from Council tax, rent and other forms of debt arrears have been introduced as the “Breathing Space and Mental Health Crisis Debt Respite Schemes” are launched by the Government.

Read more