How could the Debt Arrangement Scheme help?
Reduces unaffordable unsecured debt repayments
Your monthly unsecured debt repayments will be replaced with one affordable monthly payment, leaving you with enough to take care of your other living costs.
Freezes all interest and charges
If your new repayment plan is accepted, all interest and charges would be frozen, ensuring that more of each payment you make is paying off the debt itself.
Stops further action from lenders
The Debt Arrangement Scheme is legally binding once your new repayment plan has been accepted - so once it has been accepted, your lenders won't be able to take any further action.
How DAS works
Under the Debt Arrangement Scheme, we can help you put together a Debt Payment Programme (DPP). This is a new plan for repaying your unsecured debts at a pace you can manage.
We'll contact your lenders to ask them to accept these reduced payments. They're not obliged to agree to anything, but they're likely to agree if it's clear you can't afford your existing repayments.
Once your Debt Payment Programme has been agreed, it's legally binding - meaning your lenders can't change their minds or pursue you any further for the debts, as long as you keep up with your payments.
Your new repayment plan will continue until you can afford to make full repayments again, or until you've finished repaying the debts.
Is the Debt Arrangement Scheme right for me?
The Debt Arrangement Scheme is designed to help people who can't afford their existing unsecured debt repayments, but can still afford to repay their debts in full within a reasonable period of time.
However, even if you qualify, there may be another debt solution that is more appropriate for your circumstances. That's why it's important to discuss all your options with an expert before you make any decisions.
Call our expert advisers today on 0800 970 7724 to discuss the various options available to you.
Things to consider
The Debt Arrangement Scheme could really help you if your debt repayments have become unaffordable, but there are a few disadvantages you'll need to keep in mind. First of all, because you'll be making smaller payments than originally agreed, your credit rating will be affected. It will also mean your debts remain a burden for longer.
However, you should keep in mind that not getting help with your debts could have much more serious consequences in the long run.
