DAS or go alone

Curiositymoney

Hi there, I have been speaking to step change and am now at a stage where I need to make a decision.

I have approximately £46k of unsecured debt, and a surplus income of £592.

Stepchange have recommended a DAS, for a period just under 7 years. Alternatively I can see if my creditors will freeze interest/charges and accept reduced payments for a time.

I had already got some to do this prior to talking to stepchange as I thought it would get better, but doesn’t seem to be.

I’m not at a crossroads and need to make a decision, I’m thinking that the DAS would b best as I know it’s all covered and I can make the payment they ask. Also it would mean I have some mental relief as it’s on my mind constantly as I try to juggle 10 different creditors.

My credit rating is poor in any instance, so that is not a factor.

Is there any advice?

sourcrates

A DAS would have charges and interest stopped from day one, plus you have legal protection from diligence by your creditors.


I would go for the DAS as its a regulated scheme run by the Scottish government, it will give you piece of mind, and your creditors have no choice in the matter and no remedy against you, its a no brainer to my mind.

Curiositymoney

Thanks sourcrates, I think I know in my heart and mind that is the best thing to do.

I am just mindful in terms of employment etc, although as far as I know my job won’t be affected by it. I am not a CA or lawyer etc. Nor do I handle money as well. I think I’m just overthinking every doomsday scenario.

sourcrates

Curiositymoney wrote: »

Thanks sourcrates, I think I know in my heart and mind that is the best thing to do.

I am just mindful in terms of employment etc, although as far as I know my job won’t be affected by it. I am not a CA or lawyer etc. Nor do I handle money as well. I think I’m just overthinking every doomsday scenario.

It will not effect you in your everyday life.......as its not technically a form of insolvency, your name will not appear in the register of insolvencies, but you will appear on the DAS register.


However your focus should be on clearing the debt, and from what you have told us, this is the best way.

Curiositymoney

Is the moratorium a compulsory prt, I have all the information for the DAS to hand to be submitted.

My next lot of direct debits etc aren!!!8217;t due until the 20th and 28th of the month, and everything will be with stepchange by then.

coolcait

Curiositymoney wrote: »

Is the moratorium a compulsory prt, I have all the information for the DAS to hand to be submitted.

My next lot of direct debits etc aren!!!8217;t due until the 20th and 28th of the month, and everything will be with stepchange by then.

No, the moratorium isn't compulsory. If one of your creditors has served you with a Charge for Payment*, or you think that they might be about to do that, then it's worth applying for a moratorium. Otherwise, go with Step Change's and sourcrate's advice.

*I mean the actual legal document which says 'Charge for Payment' at the top, and will probably be served by Sheriff Officers. Not the usual creditor letters saying 'pay now or else'.

beanielou

Another vote for the DAS.