Debt Arrangement Scheme pros and cons
DAS has real advantages, and real drawbacks. Here they are side by side, so you can see what it would mean before you talk to an adviser.
The main advantages of the Debt Arrangement Scheme (DAS) are that interest, fees and charges on your debts are frozen and then written off when you finish, it costs nothing to set up, and creditors cannot take enforcement action while your programme runs. The main disadvantages are that you repay the debts themselves in full, which can take years, it goes on your credit file and a public register, and it can be cancelled if you miss payments.
DAS is a Scottish scheme, run by the Accountant in Bankruptcy (AiB), in which you repay your debts through one payment called a debt payment programme (DPP). If you are new to it, start with how the Debt Arrangement Scheme works. This page does not recommend DAS or any other option.
What are the pros and cons of DAS at a glance?
| Advantages | Disadvantages |
|---|---|
| Interest, fees and charges are frozen once your application goes to creditors, and written off when you finish | You repay the debts themselves in full. Nothing else is written off |
| No setup cost. Running fees come out of your payments before they reach creditors, so you pay nothing extra | Programmes often last years. AiB says the average is around six |
| Once approved, creditors cannot serve a charge for payment, use diligence or petition for your sequestration | Protection only starts when your application is sent to your creditors |
| You do not have to sell your home or car, or use your savings | Some debts cannot go in: student loans, hire purchase and conditional sale agreements (arrears can), court fines |
| No minimum debt, and couples can apply together | On your credit file for at least 6 years, and credit over £2,000 needs AiB’s approval |
| Payment breaks and changes are possible if your circumstances change | Your name, address and date of birth go on the public DAS Register |
| Your payment is set with a standard budget, based on what you can afford | AiB can cancel it after 3 missed payments, and creditors can then add back interest and charges |
What are the advantages of DAS?
Your debts stop growing
Interest, fees and charges are frozen from the point your application is recorded and sent to your creditors, and they stay frozen while the programme runs. When you complete it, the frozen amounts are written off. This is set out in law, so it does not depend on each creditor agreeing, which is the main difference from an informal debt management plan.
It costs you nothing to set up or run
Money advisers cannot charge you for setting up a programme. The running costs, a 2% fee to AiB and a 20% fee to the payments distributor, are taken from your payments before they are passed on. AiB’s guidance says that when a programme completes, creditors must write off the part that went on fees. In other words, once you have paid the total of your debts, you are finished, even though creditors received less than that.
Creditors have to stop
Once your programme is approved, creditors whose debts are included cannot serve a charge for payment (a formal demand before enforcement), start or carry out diligence (legal enforcement such as an arrestment), or petition to make you bankrupt. Existing earnings arrestments and bank arrestments on those debts are recalled, and the money is released to you. Court orders giving you time to pay those debts are recalled too, because the debts are now paid through the programme.
You keep your home and belongings
You do not have to sell your home or your car, or use your savings. A condition to sell or remortgage your home is only added if you choose to offer it. AiB’s guidance does say a condition could be attached requiring you to sell non-essential assets, so tell your adviser about anything valuable you own.
It can bend with your life
- There is no minimum debt, and you can apply jointly with a spouse, civil partner or cohabiting partner if you both qualify.
- You can propose paying part of your surplus income rather than all of it, although creditors and AiB then decide whether the programme is acceptable.
- If your disposable income falls by 50% or more, you can ask for a payment break of up to 6 months. Short crisis breaks are also possible.
- You can apply to change your payment if your income or costs change.
What are the disadvantages of DAS?
You repay everything, which takes time
DAS does not write off the money you borrowed. It suits people who can repay in full within a reasonable time. AiB’s statistics put the average programme at around six years. Our guide to how long DAS lasts explains what affects the length.
There are conditions to keep to
While your programme runs, you must keep up ongoing payments such as rent, mortgage and council tax, tell your adviser or AiB about changes in your circumstances within a week, and get approval before taking out credit of more than £2,000. Ongoing payments are not part of DAS, so a landlord or lender can still act if you fall behind with them.
Missed payments can end it
AiB can cancel (revoke) a programme if you miss 3 payments without an approved payment break, break its conditions or knowingly give false information. It is also cancelled if you apply for bankruptcy or a trust deed becomes protected, and a joint programme ends if you separate. If it is cancelled, mygov.scot says you will owe the rest of the debt plus the interest, fees and charges creditors would have added. Creditors can add interest back 14 days after revocation.
This does happen. AiB’s figures for April to June 2026 show 626 programmes completed and 470 revoked in that quarter.
It is visible
DAS stays on your credit file for at least 6 years. Your details also go on the DAS Register, which anyone can search free. It shows your name, address and date of birth, but not your debts.
Protection does not start straight away
Creditors are only held back once your application has been sent to them. If you are under pressure while you get advice, a moratorium on diligence can give six months’ protection from most enforcement first.
Want to weigh DAS against your other options? Tell us a little about your situation and a licensed insolvency practitioner firm will call you to go through every option, including ones that are not a trust deed.
May not be suitable in all circumstances. Fees apply. Your credit rating may be affected. Free, impartial advice is available from MoneyHelper and other services.
Who might DAS suit, and who might it not?
This is general information, not a recommendation. In broad terms, DAS is designed for people who have money left over each month after essential costs and could clear their debts in a reasonable time if interest and charges stopped. Citizens Advice Scotland points out that it can suit homeowners with equity who do not want to risk their home, because DAS does not ask you to release equity.
It may fit less well if:
- you could never realistically repay your debts in full, even over many years
- most of what you owe is in debts DAS cannot include
- your income is likely to fall and stay low (although payment breaks can help with a temporary drop)
An adviser needs to look at your whole situation before you decide.
What are the alternatives to DAS?
- A protected trust deed usually lasts 48 months and, if it completes successfully, the remaining debts included in it are written off. But it has fees, homeowners may need to release equity, your credit rating is affected for 6 years and your name goes on the Register of Insolvencies. If it fails, creditors can pursue you again. See our comparison of a trust deed and DAS.
- Sequestration or the Minimal Asset Process are forms of bankruptcy that may be options if you have little to repay with.
- A debt management plan is informal and not legally binding, so creditors do not have to freeze interest.
DAS has to be set up through a DAS approved money adviser, and free services can do this at no charge. See free debt advice in Scotland, and our guide on how to apply for DAS.
Official sources
Common questions
What is the biggest disadvantage of DAS?
For many people it is the length. Because you repay the debts themselves in full, a programme can run for years, and AiB says the average is around six. Over that time you need to keep up your payments, keep paying your ongoing bills and report changes. If the programme is cancelled, creditors can add back the interest and charges that were frozen.
Does DAS stop sheriff officers?
Once your programme is approved, the creditors in it cannot serve a charge for payment, start or carry out diligence such as an arrestment, or petition for your sequestration. Existing earnings arrestments on those debts are recalled, and arrested money is released to you. Debts that are not in the programme, such as ongoing council tax, can still be enforced if you fall behind.
Is DAS better than a debt management plan?
It depends on your situation, but DAS gives protections a debt management plan does not. In DAS, interest, fees and charges are frozen by law and written off when you finish, and creditors cannot take enforcement action. A debt management plan is informal, so creditors do not have to agree to freeze anything. Citizens Advice Scotland and National Debtline both say DAS is often the better option in Scotland.
Can I get a mortgage or credit while in DAS?
You need approval from AiB to take out credit of more than £2,000 while your programme runs, and DAS stays on your credit file for at least 6 years, which can make lenders more cautious. Some limited kinds of credit are allowed, such as credit for emergency repairs, as long as you tell the lender about your programme. Ask your money adviser before you apply for anything.
Related guides
- The Debt Arrangement Scheme (DAS) Repay your debts in full through one payment, with interest and charges frozen.
- Trust deed or DAS? The Debt Arrangement Scheme and a protected trust deed compared side by side.
- Debt management plans in Scotland Informal repayment plans and token payments, and how they compare with DAS in Scotland.
- How to apply for the Debt Arrangement Scheme Finding a DAS approved money adviser and each step of a DAS application, start to finish.