Time to get debt feee - Getting a DAS

ryan92

For the past year I’ve gotten myself deeper and deeper into financial trouble. I’ve literally felt like I’ve been sinking and the debt has been spiralling.

I had a drop in income at the start of COVID and fell into arrears with a few cards and loans ; debt totalling around £30k….. I honestly feel so embarrassed saying that. 

I have thankfully had a promotion at work but my increased income is going towards trying to pay arrears off…. And it just doesn’t seem to be going anywhere

I’ve recently been speaking with PayPlan and a DAS seems like a reasonable option and one that can get me out of this vicious cycle and back on the straight and narrow.

I’m so ashamed to have gotten into this state in the first place. But this is the first step to getting sorted.

Any advice would be massively appreciated  

sourcrates

Yes a DAS in Scotland, is similar to a DMP in England and Wales, except that it has the extra benefit of legal protection from your creditors, and all interest and charges are automatically frozen.

You repay what you owe, at an affordable rate, over a longer period of time.

All in all a good choice, especially if your a homeowner.

No shame should be felt, many are in similar circumstances to yourself.

ryan92

Thanks for the really kind words, that's helped alot!
I was initially worried it might impact my employment but it wouldn't appear to which is good.

None of my accounts have defaulted though, just behind in a few. I've noticed some posts on here advising to let them go into default first?

sourcrates

ryan92 said:

Thanks for the really kind words, that's helped alot!
I was initially worried it might impact my employment but it wouldn't appear to which is good.

None of my accounts have defaulted though, just behind in a few. I've noticed some posts on here advising to let them go into default first?

We usually only advise that, as a defaulted account has all interest and charges stopped.

You will get that automatically in a DAS, so its not an issue for you.

ryan92

Just thought I'd update this and keep updating it as I go along.
DAS application fully submitted and creditors are now being contacted.

For so long, I've felt such a weight on my shoulders and the feeling of relief that I am finally getting things under control is unmeasurable.

Onwards and upwards from here!

ryan92

My DAS is still going through the process of being set up. 
Nationwide have defaulted my credit card despite them being aware of the DAS being set up.... is this normal practice?

RAS

It's actually what you want. That way it drops of your credit records in 6 years from now = good.

Arrangement to Pay (AP) stays on your credit record until 6 years AFTER you finish paying the debt. Not good.

sourcrates

A Scottish DAS is not full insolvency, so the accounts are left to creditors to update as they see fit, usually by defaulting you.

With full insolvency, such as a DRO or an IVA or Bankruptcy even, all accounts must show a default date prior to the start of your arrangement, there is no such requirement with a DAS.

ryan92

I've just had a report from my credit file through Clearscore today to say my DAS will be reported from next month.
What is concerning is it's been marked as a CCJ?

What does this mean?

This is because you have been served a County Court Judgment (CCJ). A CCJ is an order from the County Court instructing you to repay a debt. A lender can apply to the County Court if you dont repay a debt. So, if you receive a Summons, or County Court Claim Form, it means a lender has decided to take legal action against you to recover the money.

sourcrates

ryan92 said:

I've just had a report from my credit file through Clearscore today to say my DAS will be reported from next month.
What is concerning is it's been marked as a CCJ?

What does this mean?

This is because you have been served a County Court Judgment (CCJ). A CCJ is an order from the County Court instructing you to repay a debt. A lender can apply to the County Court if you dont repay a debt. So, if you receive a Summons, or County Court Claim Form, it means a lender has decided to take legal action against you to recover the money.

Ignore clear score, they are utterly useless.

Check what is reported on the three main CRA`s, either by obtaining a statutory report, or Credit Karma can be accessed online for free.

It`s highly unlikely a DAS will be mistakenly reported as a CCJ.

ryan92

I've checked Equifax and they have the DAS listed under Court and other Public Records ;
You’ve had a public court record registered in your name at your current address in the last 12 months.

Looks like Clearscore are showing it as a CCJ and Equifax as an IVA