Catalogues are wonderful but control your spending…
Catalogues offer great items and when you see the price broken down into weekly terms it’s easy to believe you can afford everything.
Use a Pay monthly catalogue well and you can improve your Credit Rating
Using a Pay monthly catalogue well can be beneficial to your budget and can help build your credit rating, however, if you spend too much or put yourself under too much pressure the minimum monthly repayments can become expensive and could well push you into arrears.
Start missing monthly repayments and you could damage your credit rating
The last thing you want is to push yourself into debt.
Try and ensure you can afford the repayments before taking out items, especially if you already have a balance and plan to order new items.
If do end up missing your Catalogue repayment then the Catalogue company will try and contact you, usually by email, telephone or letter.
If you can’t make the repayments you really should be totally honest and upfront with your Catalogue company, they may be able to reduce your monthly minimum repayment or set up a payment arrangement.
Catalogue companies Collections departments
Catalogue companies have a special department which can help, you should talk to the Collections/Arrears department as soon as you know there is a problem. That way your Catalogue company can look at special repayment terms for a short period, or even freezing interest.
If your account is in arrears your Credit limit may be frozen
If your Catalogue account is in arrears or you have missed repayments, your Catalogue company may restrict orders from your account. Once you get your account back up to date, your Catalogue company may reinstate your Credit.
If you make a repayment plan with your Catalogue, try to stick to it
Also make sure you try and keep to any agreements you have made with your catalogue, as failing to do so, can result in your account being closed and further action being taken.
Catalogue companies will also likely report the account conduct back to the Credit Reference agencies and may charge for late payments.
If they do agree a repayment plan (known as as an Arrangement to Pay) and you break it, you may not be able to set up a new one.
Catalogue companies will try very hard to work with you to ensure you can get your account back on track.
However, once it’s clear the relationship has broken down (IE, you are not making the agreed repayments for example, they can close the account and may sell the debt on to a Debt Collection company).
If you continue to miss payments your Catalogue account may Default.
If a Catalogue company feel there is no other way to restore the relationship and the account is 2 or more payments in arrears they can Issue you with a default notice.
Never Ignore a Default notice.
Do not ignore a default notice, this is a very serious piece of paper, try your best to bring your account back up to date.
If you can’t the likely hood is the account will go into default status and your Catalogue account will be closed fully. At this point, the Catalogue company is likely to instruct solicitors or sell the debt to a Debt Collection company.
Always order what you can afford and try to ensure you are sensible when using your Pay monthly Catalogue.