Enterprise Minister Fergus Ewing today launched a Government campaign to help people struggling with debt take action.

 

Mr Ewing was at Glasgow City Council’s Money Advice Centre in the City Centre to launch a campaign to publicise the Debt Arrangement Scheme (DAS), the only Government-backed scheme for managing debt.

 

DAS offers people who are struggling with unmanageable debts an alternative to bankruptcy. It allows people to freeze interest and charges to prevent debts mounting up, and stops creditors using debt enforcement action, safeguarding people’s homes so long as they keep up mortgage repayments. It is a statutory scheme administered by the Accountant in Bankruptcy (AiB). Debt Payment Programmes (DPP) arranged under the scheme allow people to pay back their debts over any reasonable length of time, based on the amount they owe and their income and outgoings.

 

Creditors will receive at least 90 per cent of the money they are owed by the time the payment programme finishes – more than they would be likely to receive if the debtor went bankrupt.

 

Enterprise Minister, Fergus Ewing said:

 

“The Debt Arrangement Scheme (DAS) is a way for people who are struggling to pay back their debts to freeze their interest payments and charges, protect themselves from legal action, and give themselves longer to pay. Rather than juggling several payments, they make a single regular payment to one organisation.

 

“DAS is the only Government-backed scheme to do this, and it allows hard-pressed families to take control of the situation before it is too late.

 

“AiB’s recent work to raise awareness of DAS and its benefits for debtors and creditors has been reflected in the recent increase in take-up for the scheme. It offers a sensible option for Scots who are finding it difficult to keep on top of their debts but want to avoid bankruptcy.

 

“We have seen a 100 per cent growth in the number of people using the scheme  between the third quarter of 2011/12 and the corresponding period last year. I welcome this increase, and would encourage others who are struggling with debts to use the scheme to take control.”

 

• The campaign will run for six weeks from today.
• More information about the Debt Arrangement Scheme, and the TV advert, can be found here www.dasscotland.gov.uk
• For more information about AiB visit www.aib.gov.uk