Debt Arrangement Scheme
One monthly payment, shared between the people you owe. You pay back in full over a longer time, and interest and charges may be frozen once the plan is approved.
Roughly how much do you owe?
It takes about 5 minutes, and there’s no obligation to go ahead.
- About 5 minutes
to answer a few questions online
- No obligation
nothing goes ahead unless you agree
- A partner debt firm
we pass your details to one
- A real person
an adviser can call to talk it through
At a glance
Where it applies: Scotland.
- Where it applies
- Scotland
- What you repay
- The full debt, over a longer time
- Run by
- A government scheme, through an approved money adviser
- Fees
- They’re taken from your payments
General information, not advice about your situation. Limits, fees and lengths change, and the rules differ across the UK.
Why people choose it
One monthly payment
Shared between your creditors.
Interest and charges may stop
Once a plan is approved, they may be frozen while you keep to it.
It isn’t insolvency
You pay back what you owe, so it may suit someone who wants to avoid it.
How it works
You talk to an approved money adviser
They look at your income, essential costs and debts.
A plan is drawn up
It sets out what you’d pay each month.
It’s approved
Interest and charges on the debts in it may be frozen, and creditors may have to hold off action.
You make your monthly payment
Pay until the debts are paid back. The plan can be looked at again if your income changes.
An example of how the Debt Arrangement Scheme could work
An illustration of one monthly payment, shared between the people you owe. In this example nothing is written off.
Let’s say you owe
- Credit cards
- £6,842.15
- Personal loan
- £4,309.60
- Overdraft
- £2,518.35
- Store card
- £1,486.90
- Catalogue
- £1,043
- Total owed
- £16,200
After a Debt Arrangement Scheme plan
In this example you pay £16,200 over five years, in one monthly payment shared between your creditors. Nothing is written off.
- One monthly payment, shared between your creditors
- Interest and charges may be frozen while you keep to the plan
- Set up through an approved money adviser
An illustrative example, not a real client. It assumes the plan is approved. Interest and charges are only frozen if it is and you keep to it. Fees are usually taken from your payments. Creditors can object, results depend on your circumstances, and no outcome can be promised. The Debt Arrangement Scheme is only available in Scotland.
Weigh it up
What could help, and what to know first.
What could help
- Creditors may have to hold off action on the debts in it.
- You pay back in full without a formal insolvency.
What to weigh up
- You pay back the full debt, so it may take many years.
- Fees are taken from your payments.
- If you can’t keep up, the plan may end and creditors may act again.
- It’s recorded on your credit file.
- Not every debt can be included.
Is it right for you?
It could suit you if
- You live in Scotland and want to pay back everything you owe, over more time.
- You have a regular income.
It may not be right if
- You don’t live in Scotland.
- You couldn’t pay back the full debt in a reasonable time.
- You need a lower total, which this scheme doesn’t give.
Other routes to compare
No one option suits everyone. People often compare these.
Protected Trust Deed
A Scottish agreement to pay what you can afford
Debt Management Plan
One monthly payment shared between the people you owe
Breathing space
A legal pause that gives you time to decide
Questions people ask
Do I pay back everything I owe?
Yes, over a longer time. If you couldn’t pay it back in full, another option may fit better.
Will interest stop?
Once a plan is approved, interest and charges may be frozen while you keep to it.
What are the fees?
They’re taken from your payments. Ask what you’d pay before you agree.
What if I miss payments?
The plan may end, and creditors may be able to act again. Tell your adviser early.
Free, impartial advice is available from MoneyHelper, StepChange and National Debtline. MoneyHelper
Want to talk it through?
Answer a few questions and an adviser from one of our partner debt firms can call you. There’s no obligation to go ahead.