The Debt Arrangement Scheme is one of Scotland’s most powerful tools for managing serious debt — it does not write off your debt, but it gives you legal protection while you repay it in full, with interest frozen, over a realistic timescale.
For an overview of all Scottish debt solutions including those that do write off debt, see the Scottish Debt Solutions Guide.
What DAS Does
A DAS Debt Payment Programme (DPP) does four things:
- Freezes interest and charges — from the date the DPP is approved, no further interest accrues
- Stops enforcement action — creditors cannot take diligence (Scottish enforcement) against you while the DPP is in force
- Consolidates payments — you make one monthly payment to a DAS Administrator, who distributes to creditors
- Gives you time — the programme runs until your debts are paid in full, however long that takes
DAS is appropriate where you can repay your debts in full if given time and interest-free terms, but cannot keep up with current minimum payments that include ongoing interest.
Who Can Use DAS?
There are no formal debt limits for DAS (unlike MAP or DRO). You must:
- Live in Scotland (or have your main centre of interests in Scotland)
- Have one or more debt(s) you cannot repay at the current rate
- Have enough surplus income to make a reasonable monthly contribution
- Work with an accredited Money Adviser
DAS is available for both individuals and business owners (the business DAS — BDAS — covers sole traders and partnerships).
How a DAS DPP Works — The Process
| Step | Detail |
|---|---|
| 1. Money Adviser engagement | You contact a free Money Adviser (Citizens Advice Scotland, StepChange) |
| 2. Financial assessment | Adviser reviews income, expenditure, debts, and calculates surplus |
| 3. DPP application submitted | Adviser submits application to AiB via DASScotland.gov.uk |
| 4. Creditor notification | Creditors have 21 days to object |
| 5. DPP approved | AiB approves the programme; interest frozen from this date |
| 6. Monthly payments begin | You pay one amount per month to the DAS Administrator |
| 7. Programme continues | Until all debts are paid in full |
What DAS Costs
The AiB charges a statutory fee: 22% of each payment made through the DAS Administrator. This is paid by creditors receiving the distributions — not by you directly. Your monthly payment goes entirely toward debt repayment; the administrator’s fee is funded by creditors accepting a 22% reduction in what they receive.
Practical implication: If you pay £300/month, your creditors receive approximately £234/month collectively. The total debt repayment period is slightly extended as a result.
Variations and Payment Breaks
Life circumstances change. DAS includes mechanisms to handle this:
- Payment break: You can apply for a payment break of up to 6 months if you have a temporary drop in income. The programme is paused and extended by the break period.
- Variation: Your payment level can be increased or decreased if your circumstances change permanently.
- Transfer: If you move, the programme continues under a new Money Adviser.
DAS vs DMP — Why DAS Is Stronger
| DAS (Debt Arrangement Scheme) | DMP (Debt Management Plan) | |
|---|---|---|
| Legally binding on creditors? | Yes — statutory | No — informal |
| Interest frozen? | Yes — guaranteed | Only if creditors agree |
| Enforcement stopped? | Yes — legally | Not guaranteed |
| Government administered? | Yes (AiB) | No |
| Applies to all creditors? | Yes, if DPP approved | No — creditors can opt out |
| Cost to debtor? | Nil (fees borne by creditors) | Often nil (free charity services) |
Getting Started
Contact a free Money Adviser in Scotland:
| Organisation | Contact |
|---|---|
| Citizens Advice Scotland | citizensadvice.org.uk/scotland or 0800 028 1456 |
| StepChange | stepchange.org or 0800 138 1111 |
| National Debtline Scotland | nationaldebtline.org or 0808 808 4000 |