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.
You can find out more the advantages and disadvantages of DAS and alternative formal solutions such as Protected Trust Deeds by contacting our debt advice team.