Scots repay over £13m of debt

Scots repay over £13m of debt in the first six months of this year

The following appeared in http://www.scottishfinancialnews.com on 1^st October'13.

The Scottish Government-backed Debt Arrangement Scheme (DAS) has helped Scots to repay £13.4 million of debt in the first six months of this year, according to figures highlighted today.

Administered by government agency Accountant in Bankruptcy (AiB), the DAS freezes interest, fees and charges to prevent debts mounting up. It also stops creditors using debt enforcement action, safeguarding people's homes so long as they keep up mortgage repayments.

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.

"The Debt Arrangement Scheme is the only government-backed scheme available which protects those in debt and provides a dignified way for debts to be re-paid.

"Creditors get a good deal too with 90% of what they are owed being returned to them.

"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."

Rosemary Winter-Scott, Chief Executive of AiB, the Scottish Government agency responsible for DAS, added: "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.

"DAS is the only Scottish Government-backed scheme that offers a way for people who are in debt to regain control of their finances again. By immediately removing the burden of fees, charges and interest and agreeing a sustainable repayment programme, it enables them to tackle their debt while maintaining a level of income that will allow them to get on with their lives."

It is anticipated that today's figure is likely to increase in the next six months as the change in legislation made by the Scottish Government to the scheme has an effect.

In the last six months, over 2,000 Scots have entered the DAS scheme through which they can consolidate debts into one manageable monthly payment to repay a minimum of 90% of debt owed to creditors.

The scheme is suitable for individuals and couples in Scotland, earning a wage with some disposable income who want to tackle their debt. DPP will contact all creditors and consolidate all the debts into one manageable monthly payment. The length of repayment varies depending on the level of debt, but DAS does not require the release of equity on the family home if mortgage payments are maintained.

Citizen's Advice Scotland Chief Executive Margaret Lynch added: "One in four cases seen by a Scottish CAB at the moment is a debt case. Our advisers see people every day who took out a loan they thought they could manage, but which has now overwhelmed them. We see the devastating impact that debt has on these peoples' lives; because debt is a nightmare. It doesn't just affect your finances but your health, your relationships and your state of mind too. It can put your home at risk and can hit your credit rating for years.

"It is essential that we have viable solutions that can help people beat that misery. DAS is one effective solution that has certainly helped a lot of people. The total repayment figure reported today is heartening, and will hopefully encourage many more people who are in debt that there are ways out, and that they should come forward for advice."

There are 111 DAS advisors around the country and the Citizens Advice Bureau offer the service for free.

Search the DAS register for free on Yuill + Kyle's website

Yuill + Kyle have access to the online register. To see if your debtor is taking part in the programme simply visit http://www.debtscotland.com/das.cfm to submit a search.

Questions?

If you have any questions or comments on the above then please do contact me using the details below.

Best regards,

Stephen Cowan
Managing Partner
Yuill + Kyle
Debt recovery + Credit control Lawyers, Scotland
scowan@yuill-kyle.co.uk

W: http://www.debtscotland.com/
T: 0141 331 2332
Debt Recovery Ignited!

Yuill + Kyle is the trading name of Yuill + Kyle Limited, registration number: SC352604. Registered Office: 79 West Regent Street, Glasgow, G2 2AR