Catalogue debt is an easy way for people on low incomes to buy essential/low value items. But is it the best way?
As catalogue debt offers a seemingly easy way to pay for small-value items it is a common problem area for people on low incomes. Each item that is bought seems like a small amount of money per week/month but the interest charges (whether identified separately or built in to the price of the goods) are often very high.
Avoiding Catalogue Debt
Many people would be better off ignoring catalogues and getting their goods from discount retailers. If the weekly or monthly cost of goods from a catalogue seem attractive, calculate the full cost of paying for it over a year with the cost from a discount retailer. Also consider that if you are finding it difficult to budget now, this will be even harder once you have a weekly/monthly bill to pay to your catalogue representative.
What to do if You Have a Problem
If you are having difficulty making your catalogue payments, or if they are making it hard for you to pay other essential bills then you have a problem. Make sure that you are not giving these payments higher priority than they deserve - possibly because you see a representative of the catalogue company on a regular basis. Your priority should be to pay for essential items like mortgage/rent, food, council tax etc before paying any unsecured debt (which is what catalogue debt is).
Get advice from the Citizen's Advice Bureau who will be able to help you with making a budget and dealing with your creditors.
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