If you are dealing with an enormous amount of debt, you might be eligible for the Debt Arrangement Scheme, a well-known system that assists people with the repayment of unsecured debt. However, you ought to be residing in Scotland. DAS can help you regain control of your financial matters without putting your property at risk.
A Debt Arrangement Scheme (DAS) includes the negotiation of a DPP (Debt Payment Plan). The DPP is usually negotiated with your potential creditors while the due amount is merged into a single monthly amount. The initial rule of the Debt Arrangement Scheme is that the applicant must accept the guidance of an accredited money advisor.
The accredited money adviser will help the applicant(s) understand the entire process of DAS along with the scheme’s potential benefits and any drawbacks that one might encounter. In case you are wondering how DAS could help you with loan repayments, we have listed the potential benefits below:
1. Affordability
Repayments can be quite challenging, especially when one is struggling with all sorts of unsecured debts, such as credit card debts, private loans, along with some bank overdrafts. This money repayment scheme accumulates all due payments into one monthly payable amount. The applicant will pay the amount to the administrator of the Debt Arrangement Scheme.
According to the scheme, the monthly amount is divided amongst all potential creditors according to a set percentage. Thus, DAS doesn’t only render affordability, but it also removes much of the pressure from the creditor’s side.
2. Buy Time
As the repayment period gets divided and made easier, it buys you extra time and alleviates much stress that is part of financial hardships. The Debt Arrangement Scheme ensures that your creditors cease any legal action they might take against you from the very moment they (your creditors) agree to a set timescale.
The Debt Arrangement Scheme allows you to follow a structure as you make your monthly payments to repay the debt without putting your property and belongings, such as a house, from getting lost in the process.
3. Prolific Advice
Amongst the initial requirements of becoming eligible for the Debt Arrangement Scheme is getting advice and guidance from a professional financial adviser. While some of the financial advisers might charge some fees, you can also get free financial advice from any local authority corporation.
4. Smooth Repayment of Debt
DAS removes much of the pressure of potential threats of legal action against you, which is also the basic concern when one is in debt. When you sign up for the Debt Arrangement Scheme, you can have this primary threat removed from your life as your creditors can no longer embark on legal actions as long as you keep up with your monthly repayments.
Final Thoughts
The state of being indebted to creditors can be quite stressful and take a serious toll on one’s quality of life. DAS helps people rebuild their credit file over a given time frame as you will be finally able to repay all amounts that you owed in full.
