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Whether you’re looking to update your wardrobe or invest in new home furnishings, you might be considering shopping from a catalogue. While there are many benefits to shopping from the comfort of your own home, catalogue debt can cause issues. Many catalogue companies offer a form of finance that allows you to spread the cost of your purchases. This can help expensive purchases feel more affordable, but it could also lead to problem debt.
Catalogue debt is one of the most accessible types of debt and can be especially tempting if you’re a regular catalogue shopper, are offered a joining incentive, or have historically been someone who can pay off your full balance each month. If you do choose to take out finance and don’t clear the full amount, you’ll likely be charged interest on the outstanding balance. If you’re only able to cover the minimum payment and are offered high interest rates, catalogue finance can be very expensive way to borrow. It’s also a debt type that can easily get out of control as making several small purchases adds up over time.
If you’ve been browsing your favourite catalogue and found the perfect outfit for your sister’s wedding or a chair that will be perfect addition to your living room, there will usually be a range of payment options available to you. While you might choose to buy the item outright, you may also be able to make your purchase on finance. This payment method will allow you to spread the cost of your shopping over a set period.
Most catalogue finance deals offer a monthly payment schedule, and you’ll pay off the balance in instalments. Depending on the terms you’re offered, you might be able to clear the full amount without being charged any interest. However, if you can only make the minimum payment or take longer than expected to repay the debt, you could face mounting interest and charges.
You can find yourself facing persistent debt if the amount of money you’ve paid in catalogue debt interest and charges is higher than your original purchase amount. This is often a possibility if you can only make the minimum payment towards your debt each month.
If you’re at risk of entering persistent debt, you’ll receive a warning letter from the catalogue company after 18 months. This is typically the point when the scales tip and your interest payments will start to outweigh your original debt. You’ll receive another letter after 27 months if you continue to only make the minimum payment each month. If you remain in debt for 36 months, the company should offer you an affordable payment plan or propose another way for you to clear the debt.
If you’ve built up catalogue debt and are worried about the implications this might have on your finances, don’t worry.
Speaking to an experienced debt solution provider such as My Debt Plan has its benefits. We have a team of friendly advisors who offer debt help every day to UK residents.
We can talk through your options and support you to find the right debt management solution for you.
For free advice about your finances and the debt solutions available that can help you pay off your catalogue debts, call us on 0161 826 0585.
Tell us about your current debts and one of our experienced and friendly advisors can help you get the ball rolling.
Dependant on your circumstances and financial situation, we'll let you know if an IVA is a potential solution for you.
If you qualify for an IVA, we will take the necessary steps to set up and arrange this for you.
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