Debt Arrangement Scheme Newcomer

Freshstart2010

I just thought I'd pop by here and say hi. I've got a feeling I'm going to be using this site quite a bit in the coming months!

After literally years and years of believing we can sort our mess out without help I had my lightbulb moment a few weeks ago. I don't honestly know what triggered it - nothing specific that I can think of - but I just suddenly realised that we were treading water and our lives were being dragged down by the sheer misery of our debt.

I sat down and worked out that between DH and I we owe around £101,000 in unsecured debt :eek:. I know - it's horrific - but unbelievably we were managing to make the minimum payments every month and our credit ratings were still pretty good.

However, we decided enough was enough and we saw an advisor about setting up a DAS. Four weeks from making that initial enquiry and it's been approved! I still can't believe the process was so straightforward and the pressure has been so easily lifted.
For anyone else considering taking independant advice - DO IT NOW!!

joanne2008

Hi, just a question how is a debt arrangement scheme different from a debt management plan ? I am in the process of sorting out a dmp (i am in £14000 of unsecured debt )and just wondering what the difference is ?

sofababe

joanne2008 wrote: »

Hi, just a question how is a debt arrangement scheme different from a debt management plan ? I am in the process of sorting out a dmp (i am in £14000 of unsecured debt )and just wondering what the difference is ?

http://www.moneyscotland.gov.uk/das/MoneyScotland/Debt_Arrangement_Scheme__DAS_/What_is_DAS_

beanielou

DAS is in scotland & DMP's in England I think.

Freshstart2010

The Debt Arrangement Scheme is only available in Scotland - at least at the moment. Basically from the moment you apply to enter the scheme you are protected from any action being taken against you by your creditors. If your DAS is approved all interest and charges are frozen and the figures which were submitted at application are the ones which you repay. You negotiate reasonable living expenses with your advisor and whatever is left is used to repay your debt. If you are a homeowner your property is fully protected and you are not asked to sell cars or tv's or anything else of value to contribute towards the repayment. The main difference is that this is a government-scheme as opposed to a private arrangement.
It's not a quick fix and you will need to repay 100% of the debt owed - but that suits us just fine as we want to do that. it's therefore not insolvency - again a big plus!
All in all it's a great scheme and I can't tell you how amazing it feels to go to the bank and actually see money - not just what's available from an overdraft!

traycee

Well done for sharing freshstart.:T

That much debt must have been placing you under a huge amount of stress.

And it great to let other DFWs know that there really are some options out there.

Wishing you a happy, healthy and debt free future.

Traycee