Missed Catalogue Payment – What happens now?
It happens. Life's busy, Cashflow or a simple oversight. You login to make a payment for your Catalogue and realise your Payment due date has already passed.
First, don't panic, there isn't much you can do right now. Go ahead and make the repayment if you can and bring the account up to date.
It's likely the Catalogue company will call you if your account is overdue. You can also expect a letter telling you that you missed a payment.
First Missed Payment
If this is your first missed payment, you could call the Catalogue company, they will appreciate you have taken the time to contact them. Let them know the reason the payment is was late and ask nicely if they will cancel any Late fee and most importantly any late payment marker on your Credit Report.
Unable to make the minimum repayment
If you are not in a position to make the overdue payment, contact them and be upfront. Tell them the truth about your situation. For example, if you are not due to be paid for another two weeks, ask for a 2 week grace. In such circumstances, they may not be willing to reduce the late payment fee and remove any late payment markers, but it's still worth trying. It could also be worth asking the Catalogue company to change your payment due date to help avoid such problems again.
Catalogue companies know that problems occur, by letting them know in advance and coming to a solution, you maybe able to freeze interest, request the removal of any default fees and or request that no late payment marker is recorded.
Entering a Payment arrangement with your Catalogue company
You should be aware that if you call and discuss restructuring the debt (for example) reducing the amount you pay for a period, the Catalogue company may be record a AP on your Credit Report.
AP stands for Arrangement to Pay. This may have a small affect on you being able to obtain Credit elsewhere, although it's not looked at as severe as a Default or ongoing missed payments, it does highlight that you are not currently managing your financial situation, although, it does show that you are trying to resolve things, so whilst it does have an affect, it doesn't have such a severe effect as ignoring the issue.
If you have missed multiple payments to your Catalogue, it's essential you contact them and try to come to some sort of resolution urgently. Failing to do so will result in the Catalogue company defaulting your account.
Failing to come to Solution
This will have a very severe affect on your Credit rating for six years, plus, you could find the debt being managed by a Debt Recovery company, this could result in further action being taken, including possible legal action, this could increase the amount owed.
If you are unable to come to a solution that suits both you and the Catalogue company, consider contacting Step Change.