Catalogue debt is becoming an increasingly difficult problem for the United Kingdom. The Citizen’s Advice Bureau said that in 2013 they received a whopping 62,000 phone calls asking for help with catalogue loans, compared to a total of 61,000 for advice on payday loans. However, because it is less newsworthy than online credit companies, we hear about it significantly less.
What Is Catalogue Debt?
Many catalogue-based businesses will offer deals whereby you receive goods instantly, and pay them back over a set period of time (typically around 20-40 weeks). This can make goods appear very reasonably priced. However, the high-interest rates that apply can make it a very expensive way to borrow.
Many people struggle with catalogue debts as they will only meet the minimum repayments which mean interest can still cause the debt to rise. They are also very easily accessible meaning that many people sign up when they do not have the credit to justify it.
Because the money is being borrowed over an extended period of time, this can cause issues when circumstances changed. While you might have initially had the income to meet the repayments, they can cause problems if things change and you suddenly find yourself on harder times with a debt that just won’t go away.
What Happens If I Can’t Pay My Catalogue Debts?
As a private company lender, catalogue companies are somewhat limited in how they can get their money back. You own the goods you bought from them, so they cannot take them off you. They will just notify you that you are in arrears and ask you to make up the payments.
If you do not, and the debt continues to go unpaid, they may pass the debt on to a collection agency. They might also take you to court. Have unmanageable debt is always a serious issue that can cause intense mental and economic strain, but this is not what you would call a ‘priority debt’. Unlike with a mortgage, they cannot take your home off you. Unlike energy providers, they cannot cut off your resources.
Not being able to meet your catalogue repayments is not illegal.
Can I Cancel a Catalogue Purchase?
If you have had a change of heart after making a catalogue purchase, for whatever reason, you have 14 days to return the item in full working order for a refund. You may have to cover the postage costs, but this is not always the case, and it will not be massively expensive.
As always you also have consumer rights. If your purchase does not work or is damaged in any way, then you can similarly return it for a full refund.
What Do I Do When I Am in Catalogue Purchase Arrears?
If you have found that a catalogue purchase is spiralling out of control and is contributing to a problem of unmanageable debt, then it is essential that you deal with it as soon as possible. We speak to people every day who have taken on commitments that they just can’t keep up with. It happens all the time – circumstances change.
Our advisers are well-versed in clearing debt issues up and are ready to work with you to find a solution that suits you, while often while writing off significant amounts of debt altogether. Call us now on 0800 808 5142 and let’s get started.