DAS vs DMP

With so many debt solutions available, it can be difficult to know which one is best suited for you.

In order to make things quicker and easier for you, we’ve put together a comparison table that highlights the differences between the Debt Arrangement Scheme (DAS) and a Debt Management Plan (DMP).

Use this guide to see which debt solution is more helpful to you. If you still have questions however then feel free to contact PayPlan. All our advice is free and 100% confidential.

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  DAS (Debt Arrangement Scheme) DMP (Debt Management Plan)
Duration No time limit No time limit
Amount of debt repaid You will normally pay back the full amount of your debts. However if you have been in a DPP for 12 years and have paid back 70% of your debts you can apply for the rest of your debts to be written off. All of your debts will need to be repaid in a DMP.
Assets Usually protected At risk, as there is nothing to stop creditors taking further legal action
Interest rate Guaranteed to be frozen There is no guarantee that interest and charges will be frozen. This is dependent on your creditors.
Legal action Creditors cannot take legal action against you whilst you are in a DAS. There is no guarantee that creditors won’t take legal action against you.
Credit score A DAS will stay on your credit rating for six years, or until the DAS has been completed.  In a DMP, defaults can be registered on your credit file by your creditors at any time. So you could have to wait up to 6 years after you’ve finally repaid all your debts for all the defaults to be removed
Public Register Your DAS will be listed on a public register There is no public notice of a DMP
Windfalls There is no requirement for you to pay windfalls into a DAS. However if you do receive a windfall it might be worth considering as paying your windfall into your DPP would help reduce the length of your DAS. Windfalls do not need to be paid into your DMP

Interest charges

One of the key differences between the Debt Arrangement Scheme and a Debt Management Plan is the formality of the debt solutions. DAS is a scheme set up by the Scottish Government with the intention to allow you to pay back your debts without having to worry about legal action or interest charges. With a DAS then your creditors can’t take legal action against you and you won’t have to worry about interest raising the amount of your debts. A DMP is less formal but there is no guarantee interest rates will be frozen or that your creditors won’t take court action against you.

Protected assets?

With a DAS your assets will usually be protected so you won’t have to worry about selling your home or car. With a DMP however there is nothing stopping your creditors applying to the courts for a decree.

Windfalls

Windfalls, unexpected monies you wouldn’t normally have – i.e lottery wins, inheritance, redundancy pay outs, don’t have to be paid into either debt solution. However in both debt solutions you have to repay the full amount of your debts so if you were in receipt of a windfall it might be advisable to put this money into your debt plan so you can become debt free faster.

Choosing the right solution

A lot of customers ask what the best debt solution is. The truth is all debt solutions have their own advantages and disadvantages, and each individual will have different circumstances. This is why when you call PayPlan we will talk you through all the options available. We will explain to you what solutions are available; as some might have qualification criteria, and help you decide what options are most affordable for you.

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