We help hundreds of people with their debts every day, and we probably answer just as many questions – but have we ever put these answers in one convenient place for you to view at your leisure?
Well, look no more, as we’re giving you the ultimate guide to Debt Arrangement Schemes (DAS’) by answering the top five questions that you ask every day.
Before we get down to it, we want to put a disclaimer out there that the answers to these questions may not apply to all situations. There isn’t a universal answer when it comes to people’s money problems, and we will always work to make sure that we take the course of action that’s right for your situation.
Now, let’s get to the questions!
My circumstances have changed, what will happen to my DAS?
We know that no one’s circumstances are going to stay the same for the length of their arrangement, so if something about your situation changes it’s important to let us know.
As with other debt solutions, a DAS is designed to make paying back your debts more affordable. If something happens that results in you not being able to afford your payments, your money adviser will review your outgoings and how much you’re bringing in and apply for a variation to adjust your payments to suit.
If the reason you cannot afford your payments is due to an emergency or your situation is temporary, then your Money Adviser can apply to your DAS administrator for ‘payment breaks’ to allow time for it to either improve or go back to normal. However, you will need to give evidence as proof that you cannot make the payment.
What happens if I fall behind on my DAS payments?
Unexpected things happen, and sometimes this can mean that you fall behind on your payments to your arrangement. If you miss any payments to your DAS, it is very important that you contact us as soon as possible to rectify the situation.
If you are unable to make the payment, we have options such as the ones mentioned above to help you. We are also able to arrange catch up plans to help you make up your arrears and get back on track.
If you miss several payments, and nothing is done to make arrangement for the outstanding balance, your DAS may be revoked, and you will become fully responsible for your debts again. This means all interest and charges will be added back onto the balances, leaving you to possible owe just as much as – if not more than – when you started.
What happens after I have made all my payments to my DAS?
Once you have successfully made all the proposed payments into your arrangement, you will have paid your debts in full and the balances will be cleared. You will then be discharged from the DAS and it will be closed down.
At this stage, you can no longer be held liable for anything that was included in the arrangement and your creditors cannot take any legal action against you. Your details will also be removed from the DAS register and we will write to the companies advising that the debts are now repaid, and the accounts should be closed.
Is it possible to end my DAS early by paying more or using a lump sum?
When you sign your agreement, you are legally bound to the DAS to make the agreed monthly payment. As such, making increased payments won’t necessarily shorten the length of your payment plan.
That being said, that doesn’t mean that you cannot make increased payments at all. You can do this, but if it is a regular occurrence, we may need to apply to vary your DAS.
In terms of a lump sum, it can be asked for creditors to accept less than the full balance owed. This route is called offering a composition and will result in your DAS being completed early – as long as all your creditors agree.
A composition can only be offered if:
- You have already paid back 70% or more of your debts
- You have been paying for a full 12 years
If you are looking to do this, it’s best to contact us first. We will take into account all the details of the amount you want to offer and advise you if this is possible or not depending on your circumstances.
Can I add a debt to my DAS once it has been approved?
In short – yes. You can add a debt to your arrangement after approval, however, there are some exceptions to this.
It’s pretty easy to miss a debt when setting up your DAS, especially if you’re dealing with several or haven’t heard from the company in some time. If something pops up that you forgot about, just let us know. We will then request you to send us a statement or letter as proof of the debt’s existence and apply to have the debt added to the arrangement.
As long as there are no objections from any of the companies already included, then the debt will be added. In some cases, this may mean that your payments to your DAS need to be increased or the payment plan extended to account for the additional debt.
The main exception to this process is that you cannot add any debts that you have accrued after the approval of your DAS or are fraudulent/criminal in nature. In these cases, you will need to make an arrangement to pay the debt outwith your arrangement and we will factor this into your outgoings.
