Trust Deed or DAS: which is better?

If you’re a resident of Scotland who’s struggling with their debt repayments, the Debt Arrangement Scheme (DAS) or a Trust Deed may be able to help you. If so, you might be wondering which one is better – but the truth is, there’s no such thing as ‘better’ when it comes to debt solutions. Different people will need to take different approaches to their debt problems, so it’s a question of which one’s better for you.

Here, gives you more information about DAS and Trust Deeds, to help you decide which one’s more likely to be right for you.

It really depends on how well you’re managing your unsecured debts. If you’re struggling with your monthly repayments, but you still think you’d be able to repay what you owe in full (just more slowly) DAS might be more suitable.

If you’re struggling with your repayments – and you doubt you’d be able to repay what you owe in full in a reasonable amount of time – you might want to consider a Trust Deed. This is because when a Trust Deed comes to a successful conclusion (usually after three years), any remaining unsecured debt you haven’t managed to repay will be written off.

However, there are a few other considerations you’d need to be aware of. For example, during the final year of a Trust Deed, you might have to release some equity in your home so you can repay more of what you owe – although most people would agree this isn’t as bad as having to sell it (which might happen in bankruptcy). The Debt Arrangement Scheme would not require you to sell your home or release any equity.

Both DAS and a Trust Deed will damage your credit rating for up to six years. For both, it’s not just you who decides whether it’s right for you – you also need some or all of your lenders to agree to it.

You cannot arrange either of these solutions yourself. If you’re considering one of them, you’d need to talk to a debt adviser. They can talk about your situation with you and, from there, tell you whether a Trust Deed or DAS is more suitable for someone in your situation.


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