Debt Management vs Debt Arrangement Scheme

Debt Management Plan

Sometimes the right solution to debt is not to enter a Trust Deed, instead, a debt management plan could be offered. Debt management plans are an informal debt solution whereby creditors are negotiated with in order to accept a lesser amount each month, but repay the whole debt over a longer period of time. This is different to a Trust Deed as it is an informal arrangement.


The debt management plan is about finding an affordable amount to repay towards the debt each month. The money left over, after paying essential expenditure, is then offered to creditors. The debt management has positives and negatives which you should explore fully.


People living in Scotland with debt problems are often better suited to the debt arrangement scheme. The DAS debt solution guarantees to freeze interest and charges and protects a property, if applicable. The DAS is similar to the debt management plan, but the debt arrangement scheme ensures it will provide an enhanced level of protection against creditors.


Debt Management vs Debt Arrangement Scheme


The debt arrangement scheme is a Scotland only debt solution. This means that only people residing in Scotland can enter the debt solution. The debt management plan is for everybody else throughout the UK.


Many companies advise Scottish people of a debt management plan, when in fact the debt arrangement scheme is the best solution. For this reason, ensure you’re getting advice from a Scottish debt advice organisation.


The debt management plan doesn’t guarantee to freeze interest and charges, whereas the debt arrangement scheme will. The debt management solution can’t protect a house from creditors, but the DAS will. The debt management plan could last longer than the debt arrangement scheme too.


Scottish Debt Management Charity


Trust Deed Advice is managed by Debt Support Trust, a Scottish debt advice charity. Our not for profit advice team will be able to explain whether a debt arrangement scheme would be applicable for you or whether another solution would be better, such as bankruptcy.


After explaining each debt solution, and what it would mean for you, they would guide you through the process of becoming debt free.


Debt management plans are rarely used for people in Scotland because the DAS is a better debt solution. If you are in a debt management plan and would like help to switch to a debt arrangement scheme then speak to our debt advisors today. We can help you set an affordable budget and help you with a free debt arrangement plan without fees and charges.


If you would like help from our Scottish debt advice service then call us on 0800 085 0226. Debt Support Trust advisors are trained to give confidential, honest debt advice. You can also email the charity on for debt help.