Debt Arrangement Scheme - Scotland

battlestarone

das ws the best option for me and my wife,you have to make changes to you way of living,and it is an eye opener as it lets you see how you really depended on credit,we are back to the old fashioned way of doing things,saving,and planing,not this get it now and pay/worry later,thats a mugs game.

as long as you plan,budget and save and dont waste you cash your das will work out ok for you,at least you can rest at night knowing that massive amounts of intrest are not piling up on your accounts anymore and one day you will see light at the end of the tunnel.

my advise to anyone is get your dept sorted sooner than later,if you are using cards to fund your lifestyle and not able to clear them off in full every month or over a short period of time,then you cant afford the lifestyle,,,simple!!!!

credit is handy,but it is a bit of a con as well,it leads people into a spending spiril that they may not be able to really afford,and the credit companys dont keep enough tabs on there cutomers,there happy for you to sink as far as i can see,they also do not like this das system at all.

best of luck i am sure it will work out for you,as long as you keep on top of you budgets

regards to all

Jilly38

Hi there

I am new to this. I have just heard of DAS after nearly entering into a DMP with Payplan. I have got an appt with a CAB DAS Advisor next week to further discuss my situation.

I currently have around 20k of credit card debt. I have a joint mortgage but all debt is mine alone. I have been paying the minimum payments to cards but getting nowhere due to high interest rates. Can anyone advise do you think the DAS is a good route to go. I currently work full time and recoken I could pay £300 a month to debts.

How long will it take to get the DAS up and running/accepted? Also at the moment I do not really have anyone hasselling me, will this get really bad? I also have an overdraft of £1500 with my bank. I didnt really want this included in my DAS as my mortgage is with my bank too. I would appreciate any advise anyone could offer.

Thanks
Jilly:)

WorkInProgress

Hi all,

I've been in an approved DAS since Nov '09 and I'm in two minds about it. Yes it's great as all your interest is frozen etc and creditors can't take legal action against you, but I have had no end of problems with creditors still sending me letters, particularly MBNA.

One thing I wasn't made aware of at the time I entered into a DAS is that your credit file will be updated with defaults, even though you are paying back what you owe albeit over a longer period. Now my DAS is going to run for 14 years, defaults remain on your credit file for a further 3 years (I think) so in effect I won't be able to obtain any further credit for at least 17 years, not that I would want any but it would be nice to be able to move house eventually after all this is cleared up.

A DAS might seem like the best route for you but please think long and hard about it before you actually commit yourself.

Miss_Poohs

The way I saw it for my husband was his credit was trashed anyway so at least this way his credit is trashed but he's dealing with the problem.

Guess its all swings and roundabouts really.

Jilly38

Can I ask would anyone know roughly with my debts of £20k how many years a DAS would run over. I could pay around £250 to £300 per month. How long will it take to get a DAS in place? Also does anyone know if you already have a mortgage and your deal runs out, would you mortgage provider offer you a new deal? I am on a fixed rate mortgage and no intention of moving but would have to look at my deal again in around 2 years.

I have this month been able to pay my creditors half of my minimum payments. I have phoned my creditors to inform them of my situation and that I am seeing CAB. Do you think creditors are having to be more understanding of circumstances of debtors these days? One creditor was willing to make an arrangement with me (although not sure if interest would be frozen) and another said they would put my account on "hold" and await further info from CAB. I did also look at Payplan.

Can anyone confirm what the main difference is between a DMP and a DAS? Is it just that the DAS freezes interest? Also do companies that are based in England recognise the DAS scheme?

I am most gratefull for any pointers and advice. I feel like I'm in a minefield!
Thanks
J

Miss_Poohs

Hi Jilly - my husband is on a DAS (he's over 2yrs into it) - his debt was/is massive, alot bigger than yours, but anyway this is what happened

We used a local authority advisor from our council welfare rights office - good advice and all free.

The advisor came to the house and went through a SOA with us, all the debt is my husbands, but we done the SOA together.

The amount of money available after all necessities were paid was used as the guide as to how long the DAS could realistically be ran for.

In DHs case its well in excess of 10yrs despite many people saying this isnt possible - it is.

Ultimately its down to you being honest and working with your advisor. The DAS is submitted to the AiB for approval once all this has been thrashed out.

I think DHs DAS took about 6-8 weeks to come into force, but once his creditors got wind of the fact he was actually dealing with the problem they tended, in the main, to back off.

A DAS is really a DMP with several important advantages - the main one being that all interest and dilligence are suspended when you enter into a DAS, not so with a DMP I believe. I think I'm correct in saying that interest can be suspended on a DMP but by agreement, and not regulation the way it is in a DAS.

Yes English companys do recognise DAS, although to be perfectly honest I think a great many of them don't completely understand it.

On the mortgage front I don't know.

We were in the same situation as you as our mortgage deal came to an end last year, after the DAS started.

I took the step of removing my husband from the title of our house (not always wise but as I don't trust him money I felt I had no option) and getting a whole new mortgage on my own, so it was a bit different for us.

I do remember being told though by a mortgage advisor that having a DAS does affect your chances of getting a new mortgage (especially a discounted rate one). You may be able to negotiate better with your existing lender, for a deal.

There done my best - hope its not as clear as mud!! :rotfl:

Feel free to ask me about our experiences with DAS - if I can help/advise I will.

Miss P

Jilly38

Hi there

Thanks so much Miss P. The advice is so much appreciated. It is good to hear first hand from someone already in one. I think a DAS might be the way for me to go. Can't see what else there is as I really want to ensure that my property can't be touched.

I have an appointment on Thursday coming with the DAS advisor at CAB. Fingers crossed it goes okay. I just want to push on and get things fixed out. I have been burying my head in the sand for too long!!!

Can I just ask did your hubby maintain some kind of payment whilst the DAS was being fixed out? Also I have a current account with Santander with an overdraft of £1500. I didn't really want to include this as I could get my odraft paid off shortly. Do you think this can be left out of the DAS? The lady at CAB seemed to think that it would have to be included? My mortgage provider is Santander and I don't really want to muck them about in case it goes against me in the future. I have never missed any mortgage payments. I also know that if you have a debt with an affiliated company they can take monies from your account. I don't think any my creditors and involved with Santander.

thanks again,
Jilly

Miss_Poohs

Hi Jilly

I think he made reduced payments while the DAS was being arranged, but if my memory serves me correctly he was already about 2 months behind with most of his creditors anyway.

I have to say once welfare rites got involved the phone call stopped pretty quickly, apart from Lombard (RBS) who needed to be told to back off.

MY husband did include his OD (HBOS) in his DAS, I think you'd need to be very careful about paying it off yourself, as you're prefering a creditor - tread carefully there.

In as much as DAS is a wonderful thing - I'm sure you will be advised that it will affect you financially in everyway, its not insolvency but its not a ideal - if you know what I mean.

Perhaps your DAS advisor will be able to be more help on the mortgage front, as Im pretty sure having the DAS will affect your ability to apply for mortgage deals in the future, and may limit you to Santander for a while at least.

The bit you mention about having debt in one account and credit in another, is why the great folks of this forum suggest you always keep your wages/savings accounts in a separate place from any credit facility - its called the setting off rule.

I'm sure you'll do just fine and find that DAS is a very useful tool, being in Scotland we're very lucky to have it.

Jilly38

Hi there

Thanks for the guidance. I keep going from thinking that I am going to get this situation fixed out to back feeling like I'll never get this sorted! I just wish Thursday would hurry up!

Can I be a pest and just ask you, in what ways the DAS will effect me, obviously I realise I won't be able to get any credit, although not that I want any. Do you know how many years your credit file is affected for? I am sorry to keep asking you different questions but it is helpful to know what others have experienced. Mainly my concern is to just get the debt paid off obviously, but as you say I suppose the DAS is not an ideal. I think I am kidding myself that it possibly is.

Did you get or get threatened with Debt Collectors calling at your home? I am really worried that this is a real threat. I feel I have bought a little time after speaking to my creditors and telling them I had made part payments and that I was seeking advice from CAB. I did get bombarded with calls at the begining of this week but after speaking with them, these appear to have abated just now. Would you know following my meeting with the money adviser this week, would he agree to a DAS then or do you have to have several meetings?

Just one more thing............promise! Can I ask did your husband have to open a basic bank account and get his wages paid in there? My question about my overdraft is due to the fact that I currently have my wages going into that account with the o/draft (Santander) and my dd's all come out of there including my mortgage. As I am with Santander for my mortgage and will require a new deal in a couple of years (quite happy to stay with them) I am looking for as little damage limitation with them as possible. Did your husband have to start paying small agreed amounts then to his overdraft via his DAS?

Sorry if I am rambling, just very nervous about my whole situation, which I am sure most folks are! This forum has been such a life saver. It is a relief to know that I am not the only one out there and just hope like others I find light at the end of the tunnel!!!

Thanks again for your help and advice.
Regards
Jilly



Can I also just ask, did you

Miss_Poohs

Have you had a wee read here Jilly http://www.moneyscotland.gov.uk/das/MoneyScotland/Debt_Arrangement_Scheme__DAS_/DAS_Homepage

There are some pointers that may way-lay some of your concerns.

Don't worry about asking questions - if I can answer them I will.

To be honest I don't think there is a perfect solution (other than finding a large case of cash with your name on it.. LOL), but personally I think for my husband anyway it was the lesser of the evils.

DAS wont affect you in anyway in getting insurance, where as I believe bankruptcy can, and you're not insolvent either. Obviously obtaining credit will be difficult, how much of that is due to the DAS alone, and how much to a poor credit rating I really don't know.

There is a separate DAS register for creditors to check, how many of them do, I don't know, as theres a charge for it. I may be wrong but I don't think its actually noted on your credit file - the give away there is the late and missed payments - in hubbys case anyway.

Any defaults I believe remain on your credit file for 6yrs.

We did get threatened with a visit from a debt collector, I think it was EGG - its usually a ploy to get you to phone them, which I'm ashamed to say I forced DH to do. The reality is its a threat they don't often follow through with. There's actually a really good letter on here telling them politely but firmly to Foxtrot Oscar LOL.

The process can take a wee while about 6 weeks if I remember correctly - they have to contact your creditors and give them a chance to accept or decline the offers then the DAS admin (account in bankruptcy) has to register your DAS. I seem to remember our advisor coming to the house twice or three times before it was all done. Hubs DAS is distributed by Payplan by the way.

I've just asked hubs about the over draught he had, and he tells me his wasn't included in the DAS he made a separate arrangement with the bank to repay that.

His wages are still payed into the same account they were always paid in to, HBOS who by the way are also in DAS!! He doesn't have any savings though, so no need to worry there.

I hope this goes some way to settling your fears Jilly - I know its a fraught time but believe me you'll be fine, just take it a wee bit at a time.

Miss Px