How long does the Debt Arrangement Scheme last?
There is no set end date for DAS. How long yours lasts depends on what you owe, what you can afford and what happens along the way.
There is no fixed length for the Debt Arrangement Scheme (DAS). Your debt payment programme (DPP) lasts as long as it takes to repay your debts in full at an amount you can afford, and that has to be a reasonable time. AiB’s statistics say the average programme lasts around six years, and payment breaks add to the total time.
This page goes into what decides the length. For how DAS works overall, see our guide to the Debt Arrangement Scheme.
How is the length of a DAS worked out?
The length comes from two numbers: how much you owe, and how much you can pay each month.
- Your payment is worked out by a DAS approved money adviser using the Common Financial Tool, the set budget method used in Scotland. It looks at your income and your essential living costs.
- Your debts are added up. Because interest, fees and charges are frozen, the total does not keep growing while you pay.
- The length is roughly the total divided by the payment. As an illustration only, £12,000 repaid at £200 a month would take 60 monthly payments, or five years.
The fees for running DAS come out of your payments rather than being added to them, so they do not make your programme longer. When you have paid the total of your debts, you are finished.
Your adviser agrees the terms with your creditors, including how often you pay and how long the programme will last. The terms can also build in a planned increase, for example when another commitment such as a loan comes to an end, which shortens the programme.
What counts as a reasonable time?
There is no legal definition. mygov.scot says your money adviser will discuss what is reasonable for you, based on how much you owe and what you can afford.
What happens next depends on your creditors:
- If creditors owed at least 90% of the debt by value agree (creditors who do not reply within 21 days are usually treated as agreeing), AiB must approve the programme automatically, whatever the amount or length.
- If not, AiB approves the programme only if it is fair and reasonable. The period it will run for is one of the things the law tells AiB to consider, alongside the total debt, how you will pay and what creditors have said.
Citizens Advice Scotland says that, as a general rule, more than 10 years may be unlikely to be seen as reasonable unless all your creditors are happy with it.
What can make a DAS last longer?
Key fact. Anything that pauses or reduces your payments usually adds time, because you still repay the same total.
- Payment breaks. If your disposable income falls by 50% or more and is expected to stay down, you can apply for a break of up to 6 months. Your programme is extended by the length of the break. AiB’s guidance says there is no limit on how many times you can apply, as long as you meet the conditions each time.
- Crisis breaks. A short break for an emergency, such as a car breaking down, can be approved by your money adviser. AiB’s guidance allows up to two months’ worth of crisis breaks in a rolling year.
- Lower payments. If your income drops or your costs rise, you can apply to vary your programme and pay less, which usually makes it longer.
- Extra debts. A debt that was missed at the start, or one that only becomes payable later (for example if you are called on as a guarantor), can be added through a variation.
You must report changes in your circumstances within one week, to your money adviser or to AiB.
Can you finish a DAS early?
Yes. mygov.scot says a programme can end early if:
- you pay it off with a lump sum equal to everything still owed
- your creditors agree to write off what is left
- you increase your payments. AiB automatically approves changes that shorten a programme
If a smaller lump sum is agreed with creditors in return for settling early, your adviser must apply to vary the programme so the balances can be adjusted.
A programme can also end early for the wrong reason: AiB can cancel (revoke) it after 3 missed payments without an approved break. If that happens, mygov.scot says you will owe the rest of the debt plus the interest, fees and charges creditors would have added. See the pros and cons of DAS for more on this risk.
What if you are still paying after 12 years?
For very long programmes, there is a way to finish. AiB’s guidance says that once a programme has run for 12 years from approval, not counting any payment breaks, and 70% of the total debt has been paid, your money adviser or AiB can offer each creditor a composition: an offer to settle for what has been paid. A creditor who does not reply within 21 days is treated as accepting. Creditors have told AiB that debts settled this way are recorded with the credit reference agencies as partially settled.
Want to talk through how long each option could take? 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.
How does DAS compare with other solutions?
| Solution | How long it usually lasts |
|---|---|
| Debt Arrangement Scheme | No fixed term. Debts repaid in full in a reasonable time. Average around six years |
| Protected trust deed | Usually 48 months, and longer in some cases, such as missed payments or extra payments for home equity |
| Sequestration (bankruptcy) | Discharge usually after 12 months, but any contributions run for 48 months from the first payment |
| Minimal Asset Process | Discharge after 6 months |
Length is only one part of the picture. A protected trust deed is shorter 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 public Register of Insolvencies. If it fails, creditors can pursue you again and the trustee can petition for your sequestration. See how long a trust deed lasts and our comparison of a trust deed and DAS.
What happens when your DAS ends?
When you make your last payment, the payments distributor sends a notice of completion to you, AiB, your money adviser and each creditor. If your payments came straight from your wages, your employer is told as well.
- The interest, fees and charges that were frozen are written off.
- Your creditors write off the part of your payments that went on scheme fees.
- DAS stays on your credit file for at least 6 years, so it may still show for a while after you finish.
Free, impartial advice on DAS and every other option is available from the services in free debt advice in Scotland, and they can set up a programme at no cost.
Official sources
Common questions
Is there a maximum length for DAS?
No maximum is set in law. If creditors owed at least 90% of the debt by value agree, AiB must approve the programme whatever its length. Otherwise AiB decides whether it is fair and reasonable, and the length is one of the things it weighs up. Citizens Advice Scotland says more than 10 years may be unlikely to be seen as reasonable unless all your creditors are happy with it.
Does a payment break make my DAS longer?
Yes. A payment break pauses your programme rather than cancelling payments, and the programme is extended by the length of the break. That means you still repay the same total, just finishing later. A break of up to 6 months is available if your disposable income falls by 50% or more, and short crisis breaks are also possible.
How long does DAS stay on my credit file?
DAS stays on your credit file for at least 6 years, so it can still show after your programme has finished if it ended sooner than that. Your entry on the public DAS Register is a separate record. Once your programme ends, check your credit file with the credit reference agencies to make sure your debts are shown correctly.
Can I pay off my DAS early with a lump sum?
Yes. A programme is complete when you have made all the payments, or paid a lump sum equal to everything still outstanding. If you or your adviser agree a smaller lump sum with creditors in exchange for settling early, your adviser has to apply to AiB to vary the programme first. Speak to your adviser before making any lump sum payment.
Related guides
- The Debt Arrangement Scheme (DAS) Repay your debts in full through one payment, with interest and charges frozen.
- Debt Arrangement Scheme pros and cons The advantages and disadvantages of the Debt Arrangement Scheme, side by side.
- How long does a trust deed last? The 48-month payment period, what can extend it, and how it compares with other options.
- Trust deed or DAS? The Debt Arrangement Scheme and a protected trust deed compared side by side.