Das

AngieEd70

Hi there, just joined today as need help
I entered into a debt arrangement scheme 3 years ago, I am now in a slightly better financial position than I was, can I get out of the arrangement and get in touch with my creditors myself to arrange payment plans? I could probably clear a couple of them in one payment , I still have 4 years to run on the DAS but I want to boost my credit rating now .
Thanks
Angie

sourcrates

Hi,

Angie, think very carefully before ending your DAS, and check your paperwork for any repercussions.

Normally, once all covered debts are repaid in full, your DAS ends. However, it can also be cancelled due to failure to make the required payments.

If three payments are missed, the DPP is likely to be cancelled and if payments are not made for six months, it must generally be terminated.

If this happens :

the interest and other charges that were frozen when the DAS went into effect can be retroactively imposed.

So all the interest and charges that were initially frozen would then be added back to the debt, and you would be back almost, at square one again.

What so important about your credit rating ?

coolcait

Good points by sourcrates!

The DAS can also be cancelled if you make separate arrangements with a couple of your creditors and pay them directly. As sourcrates says, all the other creditors could then add on all the frozen interest.

Have you tried speaking to your money adviser - the person/organisation that set up your DAS in the first place? They can go over the options with you.

For example, if you arrange to pay more to the DAS each month that would obviously pay the whole this off more quickly. But your adviser can go through all of that with you.