Warning issued over catalogue debt

Debts to catalogue companies are a major concern for many and the problem of outstanding payments to mail order firms seems to be growing.

Accordin…

Debts to catalogue companies are a major concern for many and the problem of outstanding payments to mail order firms seems to be growing.

According to the Money Advice Trust, its National Debtline fielded 25,000 calls about debts to catalogue companies last year, but in the first quarter of 2012 it had already received 7,000 calls on the matter.

The organisation claims that catalogue debt is the fifth most common form of the problem, ahead of mortgages, rent and payday loans.

Joanna Elson, chief executive of the Money Advice Trust, said: "When buying from a catalogue, many people don't realise they are signing a consumer credit agreement, which means the debt is enforceable in the courts."

She added that people often do not realise that missing a payment usually ends any low or zero-interest deal they have on the goods they have purchased.

Recently, cashback site Quidco claimed that people were increasingly spending time hunting for bargains as a means of driving down their spending.

Posted by Paul Thacker

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