Debt Arrangement Scheme - Do I wait for Defaults before starting repayment plan?

Caley314

Ashamed to say my partner and I have gotten ourselves in a mess and have over £110k in unsecured debts due to failed business, bereavement and illness. We know our credit score is going to be impacted and accepted we can’t continue to bury our heads in the sand. 

Stepchange have advised a Debt Arrangement Scheme or Protected Trust Deed (I am in Scotland) done SOA with them and have £1k to pay towards debt

Debt Arrangement Scheme - would take 9 years to pay off all debt 

Protected Trust Deed -would be 4 years and then remaining debt written off 

In order to protect our home (£45k equity) we think a DAS is the way we will need to go. We’ve never missed a payment but we are robbing Peter to pay Paul which needs to stop. 

Am I better to wait until C/Cs and loans default before starting this? Stepchange indicates it’s best not to let accounts default.

Any info would be greatly appreciated 

sourcrates

A DAS is similar to a DMP in England and Wales, but all interest is stopped automatically, so no real need to wait for defaults (the Scottish system is so much better than ours in that respect).

As for the trust deed, that`s roughly the equivalent of an IVA, a from of insolvency, so again, no need to wait on defaults as your debts should all be defaulted on the date you started your trust deed.