The Low and Grow Process (DAS) is a formal debt solution introduced in January 2021 that may help residents of Scotland who have experienced a loss of income due to the recent Covid lockdown restrictions.
The Low and Grow Process debt solution may appeal to those who are in a position to repay their debt over a longer period of time but require a short term solution in the intermediate period before their regular income returns to normal may be eligible to apply for a Low and Grow DAS.
The benefits and risks are the same as any other debt payment programme (DPP) undertaken as part of the Debt Arrangement Scheme.
When a person repays their debts through the Debt Arrangement Scheme, interest and contractual charges are frozen. The Debt Arrangement Scheme lifts wage arrestments; stops court action including Sequestration (bankruptcy in Scotland) and requires one monthly payment that is distributed to all creditors on their behalf.
When applying for a debt payment programme using Low and Grow DAS, it is recommended that a minimum of 5% of the overall debt is paid for the duration of the discretionary condition period of lower payments, or a minimum of £35 per month, whichever is lower.