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Scottish Debt Help: What Is The Debt Arrangement Scheme?

When it comes to Scottish debt help, you are able to set up a debt repayment plan through a debt arrangement scheme, a repayment programme that helps you settle your debts by making affordable monthly payments.

These programmes are legally binding and are intended to allow you to repay what is owed at an affordable rate for you, while leaving you sufficient funds to cover living costs and household bills.

When you apply for this kind of debt payment programme (DPP), any interest and charges that apply to your debts will be frozen, so this can help ease the financial pressure you’re under. Also note that your creditors will no longer be able to contact you about your debts or take any further legal action to reclaim what is owed.

If your situation changes, you are also able to apply for a payment break or to vary the amount you’re paying, although note that the term of this break will be added to your DPP.

Familiarising yourself with the full implications of a DPP is important, however, and the details of your situation will be publicly available on the Debt Arrangement Scheme register (1), as well as showing up on your credit file for six years.

Also note that if you fail to keep up with the payments, your DPP could fail and this can see interest charges added by your creditors, or further action taken against you as a result.

If you typically have money left over at the end of each month after all priority bills and costs have been met and if you’re able to clear your debts within a reasonable timeframe, a DPP may be a suitable course of action for you. You are only able to apply for these programmes if you live in Scotland, however.

If you are struggling with debt at the moment because of cost of living challenges, get in touch with us today to see how we can help.




Money Helper has replaced the Money Advice Service and brings together the support and services of three government-backed financial guidance providers: the Money Advice Service, the Pensions Advisory Service and Pension Wise.