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I’m on a DAS DPP and my income has changed, what can I do?
If you’re on a DAS debt payment programme (DPP) and your circumstances change, what happens? Can you change the payments on your DPP too?
The simple answer is yes. There’s something called a variation, that your money adviser can arrange for you.
When you enter into a DPP, your lenders are sent a proposal of the payments you will be able to make to them each month. This is based on your current income and outgoings after your essential bills, such as rent, council tax and utilities, have been paid. As some DPPs can last several years it’s quite likely that your income will change over the term.
For example, you may get a new job that pays better, or perhaps you’ve married and now have two incomes to rely on, so you could potentially afford to pay more towards your DPP. Of course, your income may also go down, if your hours are cut or you go through a relationship break-up for example.
If this happens to you while you're on the DPP, you should let your money adviser know straight away. Once they have all the details and work out a new proposal for you, they will apply to the DAS Administrator for the variation on your behalf.
The variation will have one of the following outcomes, the:
· the amount paid to creditors might be increased
· the amount paid to creditors might be reduced
· the length of the DPP might be reduced
· the length of the DPP might be increased
· a new condition might be attached to the DPP
Source: DAS Scotland
And any changes you request to your DPP will only be approved by the DAS Administrator if one of the following conditions is met:
· where all parties agree that the DPP should be varied
· where there has been a material change of circumstances which may include an increase or decrease in the client’s income
· where the client and creditor agree that there is no longer a debt to be repaid
· where a debt due at the date of the agreed DPP was omitted or overlooked
· where a future debt, not quantifiable at the date the DPP was agreed, becomes due
· the client requires emergency credit to pay for emergency repairs or funeral costs etc
· where the client is granted a payment break for a period of up to six months.
Source: DAS Scotland
You can, of course, ask for a DPP variation for other reasons, not listed above, but they would have to be exceptional for the DAS Administrator to accept them.
Once your request for a DPP variation has been received by the DAS Administrator, they will consider it carefully. They’ll take your views, those of your money adviser, and the lenders into account, as well as anything else they feel is appropriate, before deciding whether to reject or accept the variation proposal.
How do I apply for a DPP variation?
You can apply for a variation to your DPP yourself, in writing, direct to the DAS Administrator. Or, if you prefer, you can speak to and ask your money adviser for advice and ask them to apply on your behalf. The process is quite simple and can be done by filling in a Form 4 Application for a variation of debt payment programme and submitting it via the Debt Arrangement Scheme Hub (DASH).
The pros and cons of a DAS DPP
We must point out that while a DPP is an effective way to get your problem debt back under control, it will also have some side-effects too. These include having your name appear on the publically accessible DAS Register for the time the DAS DPP is running. And your credit score will also be affected for at least six years. This could make it difficult for you to get credit in the future, or you’ll be able to get it, but with higher than average interest rates.
If you’d like to know more about DAS DPP, we have comprehensive information here. If you feel you’d like to discuss your options with someone, our fully trained debt advisors are standing by. Just choose one of the ‘contact us’ options on the left of the page.
by Shelley BowersBack to blog home