Debt help is indispensable when you are no longer able to meet your outgoings for reasons such as illness, unemployment, the added costs of raising a growing family or because you have excessive levels of unsecured debt. Financial difficulties can cause a lot of stress especially if you have reached the point when you have no idea how you can recover from the situation you are in.
If you are feeling the pressure because of your debts and you are a resident of Scotland then Debt Arrangement Schemes (DAS) could be a good option for you. Most debts can be included in a Scottish Debt Arrangement Scheme including mortgage and rent arrears. However, this will not prevent your Mortgage Company or landlord from taking action against you, although they may look at matters more favorably. You will be protected from legal action by other creditors though.
With a Debt Arrangement Scheme, you make lower monthly repayments depending on how much you can afford. Once the scheme is approved you will make payments over an extended period through a Debt Payment Programme (DPP) and all your interest charges to creditors will be frozen. The repayment period can be for any reasonable length of time.
How can I get a DAS?
You need an approved money adviser to set up a DAS for you. Your approved money adviser will register the fact that you have applied for a DAS, to protect you against action from creditors whilst your proposal is being submitted. That protection will continue once the DAS administrator receives your application unless your proposal is rejected.
To qualify you will need to reside in Scotland, you must owe money to at least one creditor and you must be able to afford to pay a reasonable amount to your creditors each month. You can apply for a DAS as an individual or a couple, but if you apply as a couple you should both be liable for one or more of your debts and you should agree jointly to the DPP.
If you want to apply for a DAS through a company that provides debt management services you will need to provide all the necessary information so the company can create a customized plan for you. This information includes your personal details, the total money you owe, the different creditors involved and the amount that you are able to pay each month.
The Benefits of a DAS
A Scottish Debt Arrangement Scheme will provide certain advantages that make bill payments stress-free and less confusing. One such advantage is that you can make your payments for an extended period of time according to how much you can afford. Another advantage is that your chosen debt Services Company (or approved money adviser) will deal directly with your creditors saving you the hassle.
A DAS also prevents your creditors from taking legal action against you. Additionally, a DAS is quite flexible because, in cases where your financial circumstances change while under the programme, you can apply to vary your payment scheme. You can also apply to take a payment holiday if you get into difficulties whilst on the scheme.
Back on Track Loans offers various methods to help you reduce your monthly outgoings and we are an approved money adviser so we can help you apply for a DAS. We have a range of repayment schemes for people in Scotland as well as in the UK and specialise in providing loans for people with a poor credit history. Therefore, if you are not suitable for a DAS or other repayment plan, you may find that one of our extensive range of consolidation loans will help you.