Tackling your debts

Dealing with problem debt in Scotland part one

Posted 06 October 2015

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Whether it’s DAS, MAP or Sequestration, there are options available for Scots living with problem debt that could transform their financial situation. Read on to find out more.

According to the BBC, Scots have the highest level of council tax arrears in the country – the average in the UK is £798, whereas the average in Scotland is £1,534. Part of the reason why people are still struggling with unmanageable debts in Scotland might be because they don’t know about the solutions that can help.

Here at the Debt Advisory Centre we thought it was time that we focussed on what to do if you find yourself in serious debt and you live in Scotland. If you’re battling unmanageable debts and living north of the border, there are debt solutions available to help. In fact Scotland has its own range of debt solutions, all of which can be very useful in the right circumstances. Let’s have a look at some of those now, starting with Debt Arrangement Schemes.


Debt Arrangement Schemes

These work in a similar way to Debt Management Plans in England, with the difference being that you can’t set one up yourself directly with the lenders. You need to go through a third party, a Money Advisor, who will organise everything for you. The reason being that it is a formal debt arrangement run by the Scottish government.

With DAS you make a regular payment every month and this is distributed to your lenders. Now the payment is less than you are currently paying and is calculated to be a realistic and affordable amount for you. Importantly, if you go down this route the interest and charges on what you owe are frozen so you have the peace of mind of knowing that your debts are not increasing.

A DAS can also stop diligence (money being taken automatically from your wages and benefits) and will also stop your lenders from contacting you for payment as your Money Advisor deals directly with your creditors for you.

A DAS might be right for you if you think you can manage to repay everything that you borrowed, but you need the monthly amount you have to pay to be reduced to cope. To read more about DAS click here.

That’s enough to be getting on with. Tomorrow we’ll look at two other debt solutions available in Scotland - Minimal Assets Process and Sequestration. And remember, if you want to talk over DAS or any other debt solution with an expert, contact us using the options to the left. 

by Christine Walsh

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To find out more about managing your money and getting free debt advice, visit Money Advice Service, an independent service set up to help people manage their money.