Catalogue Debt Scotland – Advice
With A Trust Deed You Could Write Off Your Unaffordable Debt
Table of Contents
What Is Catalogue Debt?
Catalogues remain an extremely popular way of purchasing goods for many people. They often give you an option to ‘buy now, pay later’ and to spread the cost of your purchases over a period of weeks. These features can seem attractive, but with high interest rates and/or simply higher prices than competitors, it can be an expensive way to purchase good or to borrow.
Can I Just Make Minimum Payments on my Catalogue Debt?
Some catalogue companies will sometimes only ask for a ‘minimum payment’ from you on a weekly or monthly basis. Paying this amount can seem tempting but they can often not completely cover the interest and repayments, so your debt will increase giving you more to pay in the long run. If you take this option for a prolonged period of time the your account may be considered to be in ‘Persistent Debt’.
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What Is Persistent Catalogue Debt?
Persistent Debt occurs when you have been paying minimum payments for a prolonged period of time and you have only been repaying interest and charges as opposed to the actual original balance of the account. If or when this occurs, your creditor should contact you to encourage you to clear your debt so that that it is gone within 18 months. If this is not possible, then you will often be contacted as follows:
After 27 Months
You will be contacted again by your creditor, encouraging you to deal with the debt.
After 36 Months
If your persistent debt remains, then your creditor should offer you a method of paying the debt within three to four years. This could be a payment plan that is affordable or a loan or credit card. If these options aren’t suitable to your circumstances, then your creditor may consider ceasing any interest or charges on your account.
At this stage, your credit history will almost certainly have been negatively affected.
What Happens If I Fall Behind with My Catalogue Debt Payments?
If you fall behind with your catalogue payments, in the first instance, your creditor will simply ask you to catch up with your arrears. If you are able to do this, then you will be allowed to continue making payments in the agreed way. If you are unable to then the account will default. This will mean that your account is closed and you will be no longer able to make any purchases.
Catalogue companies will often sell the debt to a Debt Collection Agency or they will take legal action to reclaim their lost money.
Catalogue debt is not like Hire Purchase. Your creditor will not attempt to repossess your purchased goods and you are not able to simply cancel the agreement and give the items back.
Can I Cancel My Catalogue Debt?
Under the Sales of Goods Act section Online and Distance Selling, all purchases made online or through a catalogue are subject to a 14-day cooling off period. This means that should you decide you cannot afford the purchases, then with this timeframe you could simply send them back ‘no questions asked’.
Who Can Help Me with My Catalogue Debt?
If you are having trouble paying your Catalogue debts or if you have other unsecured debts that are beginning to get out of control, then the following solutions may be right for you:
Contact TrustDeed4Me for help. We can help you begin to get your life back on track.
Can I Have Catalogue Debts Written Off?
Since catalogue debt is unsecured, you could potentially have it written off under the terms of a Trust Deed.
Trust Deeds are solely available to residents of Scotland. If you are a resident of England, Wales or Northern Ireland, then visit our sister site IVA4Me.co.uk to find out about Catalogue Debt Help.
Catalogue Debt FAQS
If you fall behind on your catalogue repayments, or if you fail to make your minimum repayments, then your catalogue company may ask you to catch up. If you are unable to do this then they have a few options that they could take.Read More
With offers of 'buy now pay later' and being able to pay for purchases over instalments, catalogues are an extremely convenient way for many people to shop. But, it can be incredibly tempting and easy to overspend and create a debt burden that is tricky to pay off, especially around...Read More