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Debt help when your catalogue balance is threatening to overwhelm you

Catalogue Debts overview

When you apply for an account with a catalogue company, you’re provided with a credit amount (much like an overdraft). This credit facility is a ‘revolving’ one, which becomes available again once repaid. Differing catalogue companies charge different levels of interest rates, with a typical rate of 39.9%.

Each month the catalogue company will send a statement that details the minimum repayment, which may be something along the lines of at least £5 or 7% (whichever is higher).

Debts with catalogue companies are considered non-priority debts. That means that priority debts should be paid before it if you only have a limited amount of money to service your debts.

Priority debts include: mortgage repayments and loans secured on your home; rent; gas and electricity debts; council tax; and certain payments ordered by the courts.

The advantages of Catalogue Debts as a credit solution

  • Catalogue accounts can provide a much-needed option for purchasing household goods when you wouldn’t normally be able to pay for them outright.
  • Using a catalogue account responsibly can improve or create a positive credit history.
  • Unlike other credit solutions, such as Hire Purchase, you won’t be required to return the goods should you fall behind with the monthly repayments.

The disadvantages of Catalogue Debts as a credit solution

  • If you fall behind with repayments and don’t catch up within a stated period, your creditor will take action which could lead to your debt being passed to a debt collection agency. Alternatively, the catalogue company may take you to court.
  • At an average of 39.9% APR, catalogue credit is considered among the more expensive forms of finance.

Worried about debts that won't go away?

Debt help tips for tackling Catalogue Debt

  • If you miss one or more repayments you should get in touch with the catalogue company as soon as possible to tell them about your circumstances and what steps you’re taking to address the situation.
  • If you still have goods on order or have had the goods for 14 days or less, you still have a right to return them. However, you may be required to pay for the postage to do this.
  • You should explore your options by speaking with an impartial debt charity, which could provide you with advice free from bias as to what your options may be. You should also head to our debt solutions page to learn about different solutions that could resolve not only your catalogue debt, but wrap many of your debts into a single repayment (or in some instances, write off a portion).

IVAs – A potential solution for Catalogue debt

An Individual Voluntary Arrangement could be a suited debt solution for your catalogue debt if you owe over £5,000 to more than two creditors.

As a form of debt settlement, an IVA runs over either five or six years, with any remaining debt written off once the period draws to a close.

*An Individual Voluntary Arrangement (‘IVA’) is subject to the customer meeting qualifying criteria and gaining creditor acceptance. Monthly IVA payments include fees and may differ to the example provided, based on the assessment made of your own personal circumstances – these fees will be clearly explained to you in writing by your IVA company. Debt write off amounts are subject to creditor acceptance and vary by individual customer based on their own financial circumstances, and are applied upon successful IVA completion.

Substantiation example, Someone owes £60,000, they pay £100 over 60 months which equals £6000, write off amount would be £54,000 which is 90% of total debt level. Upon submitting your details on this website we will pass your details to one of our approved partners as this website does not give any advice.

Free debt counseling, debt adjusting and credit information services are available from the Money Advice Service.

National Debt Help
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