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i This advice applies to people living in Scotland.

Debt Arrangement Scheme (DAS)

DAS or DMP? Which is better?

The Debt Arrangement Scheme (DAS) and a debt management plan (DMP) are both a type of debt solution. They are plans that help you repay several debts at once with one affordable monthly payment.

They may sound similar on the surface, but each have their own benefits, risks and fees.

A debt payment programme (DPP) through the Debt Arrangement Scheme (DAS) is only available to people living in Scotland. A debt management plan (DMP) is available to people living in Scotland, England, Wales, and Northern Ireland.

Quickly find what you are looking for


  1. What is the Debt Arrangement Scheme?
  2. What is a debt management plan?
  3. How does a DPP through the Debt Arrangement Scheme work?
  4. How does a debt management plan work?
  5. Does a DPP or DMP affect my credit file?
  6. How does a DAS and DMP compare?
  7. How do I get a DAS or DMP?

1. What is the Debt Arrangement Scheme?

The Debt Arrangement Scheme is a government scheme to help people in Scotland repay their debts through a debt payment programme (DPP).

It is a legally binding debt solution. This simply means that there are rules in place to protect both you and the people you owe (known as your creditors).

You can only set up a DPP with an approved money adviser or insolvency practitioner.

A Debt Arrangement Scheme is not an insolvency solution. People often think this because a DAS is 'legally binding'. But a DAS is a repayment solution with extra protections.

StepChange are approved money advisers in Scotland

Our advisers can help you set up a DAS from our Glasgow office. They can also help you with a DMP or find another option that suits you better.

Find out more about debt advice in Scotland.

2. What is a debt management plan?

A debt management plan is an informal debt solution. This means your creditors are not forced to do things like stop interest and charges or court action. But the Financial Conduct Authority (FCA) does have rules in place for DMP providers.

Anyone can have a debt management plan. There are a few different ways to set one up:


  • Through a debt charity like StepChange. We will set up and manage your DMP for free
  • Through a debt management company. Be aware that some of these companies can charge advice fees and management fees
  • On your own. This can be hard to manage alone, so we always recommend getting professional advice and support

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3. How does a DPP through the Debt Arrangement Scheme work?

When you are on a DAS plan, there will be a few different people or organisations supporting you. They all have a role to play:


  • Money adviser: These are the people who will have helped you apply for your DPP. You will normally be assigned a continuing money adviser (CMA) who will support you through the full term of your DPP. They can help if you need advice about something, or if you need to make changes to your plan
  • Payment distributor: These are the people who are responsible for collecting and sending out your monthly payment to your creditors. The payment distributor can be from the same organisation as your money adviser in some cases. StepChange can act as both your money adviser and payment distributor
  • Accountant In Bankruptcy (AiB): The AiB is the organisation who runs the Debt Arrangement Scheme. They oversee all debt payment programmes. The AiB will decide if your DPP gets approved and have the final say in any decisions that would change the plan

You make payments to your payment distributor, and they will split it between all the debts included in your DPP.

Your DPP payments are based on your budget. You will only pay what you can afford.

With a DPP you can choose your payment 'frequency'. This is how often you make payments.

You can choose to make payments:


  • Monthly
  • Every four weeks
  • Every two weeks
  • Weekly

We recommend choosing a payment option that matches how often you get your wage or benefits payments.

Payments are broken down equally no matter how often you choose to pay. There is no 'cheaper' option.

Here is how much you would pay if your total amount of debt was £1,000:


  • Monthly: 12 payments of £83.33
  • Every four weeks: 13 payments of £76.92
  • Every two weeks: 26 payments of £38.46
  • Weekly: 52 payments of £19.23

Sometimes at the end of your DPP, you will have one last payment to make that is smaller than your regular payment. In the above example, your final payment would be 4p.

A DPP does have fees, but your creditors pay them.

These fees are taken off the amount you owe to each creditor, meaning you pay less back.

Let's say you had one debt of £100:


  • 20% would be taken off for payment distributor fees. This would amount to £20
  • 2% would be taken off for AiB fees. This would amount to £2

So, your creditors would pay £22 in fees. You would only pay £78 of the debt back through your DPP.

Money advisors are not allowed to charge fees under DAS rules.

A DPP is a 'legally binding' debt solution. This means there are firm rules in place to protect you and the people you owe.

Over the course of your DPP, your creditors cannot:


  • Take further action against you, such as a diligence or sending Sheriff Officers to your home
  • Add interest and charges to your debts
  • Take any items of value (assets) from you to recover money to pay off the debts

But these protections stop if your DPP gets 'revoked'. This means your DPP is cancelled.

Your situation is likely to change over the course of your DPP, which is why your DPP can also be changed to suit you.


  • Crisis break: A type of payment break that lasts for one month. You can have two crisis breaks in a 12-month period
  • Payment break: A longer type of payment break that can last up to six months
  • Variations: These are changes to your DPP. Such as changing your regular payment amount, how often you pay, or adding or removing a debt from your DPP

Any changes that have a negative impact on your DPP will be sent to your creditors to vote on.

Your DPP can last for as long as you need it to. There is no time limit.

The time from the start to the end of a DPP is called the 'term'.

In most cases, StepChange will only support DPPs with a term of less than 20 years. This is because any DPPs with a term over 20 years are less likely to be approved.

But some cases with a term longer than 20 years will be supported if there are expected changes in your situation that would improve your DPP.

The AiB will automatically send an 'offer of composition' to each of your creditors when you have paid 70% of what you owe and paid the DPP for 12 years. The 12 years does not include missed payments, crisis breaks and payment breaks.

So, if you owed £1,000 in total, this would happen when you have paid £700.

An offer of composition is a settlement offer. The AiB will ask each creditor if they would be happy to write off the remaining amount you owe because you have paid 70% of the total amount.

Your creditors don't have to accept the offer. But if all of them do, your DPP will end early.

You can also choose to make full or partial settlement offers at any time during the term of your DPP.

4. How does a debt management plan work?

When you are on a DMP, the DMP provider will usually do everything for you, such as:


  • Giving advice
  • Sending your payments to creditors
  • Managing or overseeing your DMP

Some DMP providers will assign a caseworker to you, but others will not. You might have to speak to a different person each time you contact them.

You make one payment per month and your DMP provider will split this between all the debts included in your plan.

Your monthly DMP payment is based on your budget. You will only pay what you can afford.

Your DMP can be changed to suit your needs.

If you are struggling to make your monthly payments, your DMP provider will work with you to check your budget and make sure you are living comfortably.

A DMP should never feel unaffordable.

We always recommend looking for a free DMP.

Some providers will try to add unnecessary costs to their DMPs, such as:


  • Set up fees
  • Admin fees
  • Advice fees
  • Maintenance fees

Some providers will even take up to half of your monthly payment in 'fees'.

When you pay for a DMP, you don't get any extra benefits or protections. It works just like a free DMP, except you end up paying more every month. This means it takes longer to pay what you owe.

StepChange DMPs are always free. And we don't charge for advice.

If you come into a lump sum of money, you can use it to make offers to your creditors to end your DMP early.

StepChange has a dedicated settlements team that can support you through the settlement process.

Full settlement offers

You can offer to pay the full amount remaining on your DMP and clear your debts in full. Creditors will usually accept this offer.

Partial settlement offers

You can offer to pay a portion of the remaining debts and ask your creditors to write off the rest.

The amount you offer is very important. Some creditors will only accept partial settlement offers over a certain percent (%).

Let's say a creditor will only accept offers over 70%. This means that if your total debt amount was £100, you would need to offer at least £70.

Find out more about making settlement offers to creditors.

5. Does a DPP or DMP affect my credit file?

Before you can get a DPP or DMP, you will need to get debt advice. Debt advice does not impact your credit file or credit score.

On a DPP or DMP you will be paying less to your debts, which will affect your credit file. This is because you are making lower payments than what you agreed to pay when you first took out the debt.

Making lower payments usually leads to your account defaulting. Defaults are recorded on your credit file to show that you have broken the terms of your agreement.

These issues may affect your ability to get credit in the future. But if you have missed some payments before getting debt help, your credit file will already be affected.

Your creditors will sometimes mark lower payments on your credit file as an 'arrangement to pay' if you get debt help before your accounts have defaulted.

You can work on repairing your credit file after you have cleared your debts. If you are finding it hard to keep up with payments, your credit file will already be affected. We always recommend dealing with your debts first.

6. How does a DAS and DMP compare?

Debt Arrangement Scheme (DAS) Debt management plan (DMP)
Only for people living in Scotland For people living in Scotland, England, Wales, and Northern Ireland
Can only be set up by an approved money adviser or insolvency practitioner Can be set up by anyone authorised by the FCA to run DMPs
Fees are included in your plan and paid for by your creditors Some DMP providers will charge fees and others will not - we recommend looking for fee-free DMPs
Interest and charges will be stopped while you are on a DAS Your creditors can still add interest and charges
You are protected from court action while you are on a DAS Your creditors can still take court action against you
A DAS is flexible and can be changed to suit your needs and situation at any time. You will keep the same protections as the DAS is legally binding A DMP is flexible and can be changed to suit your needs and situation
Your DAS will be recorded on the DAS register Only you, your creditors, and DMP provider need to know about your DMP
Your assets (items of value) are protected while you are on a DAS Your assets (items of value) are not protected under a DMP

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7. How do I get a DAS or DMP?

The first thing to do is get debt advice. We will help you to:


  1. Make a budget that shows you how much you have coming in and going out each month
  2. Put together a list of all your debts, including how much you owe to each
  3. Get advice on which debt solutions are best for your situation

Get started with online debt advice. Start, pause and pick up at a time that suits you. Debt advice does not impact your credit score.

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