13.4m Pounds of Debt Repaid through DAS In just 6 Months, Reports Debt Specialists Simple Financial Solutions
Edinburgh, Scotland (PRWEB) December 07, 2013 -- Over 2,000 indebted Scottish citizens paid back 13.4m pounds of personal debt between January and June this year, putting DAS on the map as one of the most effective debt repayment options available. However, the government’s recent 250,000 pounds investment in streamlining the scheme and making it more widely available is likely to see these numbers rise significantly over the next few years.
The DAS scheme was introduced in 2011 as an alternative for those people who could pay off all the debts they owed if they were given a little more time to do so. Following in depth financial advice from a Money Advisor, the debtor is set up with a debt payment plan (DPP) and makes one affordable payment every month to a central payment distribution centre, which in turn distributes the payments to creditors according to the terms of the debt repayment agreement. All interest, charges and fees are frozen for the duration of the DPP to prevent the debt from escalating, and creditors are unable to take any action to recover what they are owed through the courts.
Enterprise Minister, Fergus Ewing, said: “This is a significant amount of debt which the scheme has helped people repay already this year. People from all parts of our society can suddenly be hit by unforeseen circumstances which push them into seemingly uncontrollable levels of debt. The world leading action which the Scottish Government took earlier this year to freeze interest and charges upon application, demonstrates our commitment to address these problems."
“Our message is simple – there is help for those people in Scotland who are struggling under the burden of debt. By raising awareness of DAS, we hope that more people can take control of their finances and get help out of the hole.” The full article was published on October 1st, 2013 by the Dailyrecord.co.uk.
DAS has proved a lifeline for many since its introduction. Redundancy, falling salaries and the rising cost of living have all put household budgets under pressure, with many people finding themselves falling behind on their bills or extending their credit to unmanageable levels to cope.
A spokesperson for Simple Financial Solutions said: “The recent figures from the AiB show just how effective DAS can be at helping people in financial difficulties pay what they owe, and it is likely these numbers will increase significantly over the coming months. A number of changes to the DAS scheme have been recently introduced by the government to widen its availability to a greater number of people, and eligible debtors now includes those with a single large debt and couples with jointly and severally liable debts.”
The changes will come as some relief to many households who manage their finances jointly or owe a large amount of money to just one creditor, and had previously been excluded from applying from DAS.
Rosemary Winter-Scott, chief executive of AiB, said: “It is encouraging to see that DAS is supporting a growing number of people in Scotland and that an increasing amount of debt is debt being repaid. This relieves pressure on individuals and hard working families and is clearly good for wider society and the economy. For many people an unexpected change in personal circumstances, such as a new child or illness, can topple the scale and slide them into unmanageable debt. It is important that we remove some of the stigma associated with debt and encourage more people to seek support in order to help them tackle their debt.”
About Simple Financial Solutions:
Simple Financial Solutions are an ethical provider of Consumer debt solutions such as Scottish Trust Deeds, IVA's, Debt Management and Debt Relief Orders. For more information, feel free to call them on 0800 043 2027 for confidential and impartial advice.
Ivan Hardy, Simple Financial Solutions, http://www.simplefs.co.uk/, +1 (949) 555-2861, [email protected]
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