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Want to know more about DAS Debt Payment Plans? Here are 3 FAQs
If you are thinking about a DAS Debt Payment Plan (DPP) as a potential solution to bring your problem debts back under control, it’s a good idea to find out as much as you can before making any final decisions. There is, of course, plenty of information available on our DAS DPP page, but we wanted to make it easier for you by answering three of the most frequently asked questions here. So, let’s get started.
Will I lose my home if I’m on a DAS Debt Payment Plan?
The answer to this first question is a reassuring no. Some other debt solutions, such as sequestration are forms of insolvency that will likely see your lenders asking that you sell your home to pay as much as you can towards your debts as possible, if there’s equity available in it. When you enter into a DAS DPP you will not be asked to do this. A DPP is not a form of insolvency, it’s just a way to allow you to pay off your debts in way that’s affordable and sustainable for you.
Can I take a payment break if I’m on a DAS DPP?
Yes, you can. If your circumstances change, and you need to take a break from contributions, this will usually be possible as long as you meet the criteria, which will be explained to your by your DAS administrator.
Being put in a position where your monthly disposable income has dropped significantly is often called having an ‘income shock’. It’s most often seen when something you were not expecting happens. Some examples are:
· illness that results in you being unable to work
· divorce, separation, civil partnership dissolution or a bereavement of someone who shared the caring responsibilities with you
· maternity or paternity leave
· changes in employment or a period of unemployment
If you find yourself in any of these situations, you can ask for a payment break of up to six months. If this is agreed, the length of the DAS DPP will increase by six months too – speak to your DAS administrator.
Can I have a joint DAS DPP?
Yes, as long as the debts are eligible to be included in the DPP, they can be your debt or your partner’s debt. To apply for a joint DPP, the other person must be your:
· husband or wife, or the person you live together with as husband and wife
· same sex partner, living as husband and wife or
· civil partner
And you must both agree to the DPP as well. So there’s no chance of your partner setting up a DPP without your knowledge.
The pros and cons of DAS DPP
As with all debt solutions, a DAS DPP has both pros and cons. The pros are that entering into a DAS DPP will stop your lenders contacting you, so the stress of letters and phone calls stops. Plus, you lenders won’t be able to add any further interest and charges, so you know your debt won’t be getting any bigger. This leads into a further benefit, which is knowing when your DPP is going to end and when you’ll be free from your problem debts.
However, there are also some cons to live with too. For example, your name and address details will appear in the publically accessible DAS register for the time the DPP is running. Your credit score will also be damaged for at least six years. This will make applying for credit in the future more difficult or more expensive than it would have been.
If you want to read more about DAS DPP click here. If you feel like you want to speak to someone about your situation and the options available to you - we’re here. Just choose one of the ‘contact us’ options on the left of the page.
If you prefer, there’s also free and impartial debt advice available from the Money Advice Service
by Shelley BowersBack to blog home