Catalogue Debt a Bigger Problem than Payday Loans
The Money Advice Trust’s National Debtline warned today that more people are struggling with home shopping catalogue debts than they are with payday loans, mortgages or rent arrears.
The charity received over 25,000 telephone calls from people worried about their debts with catalogue companies in 2011, which is the largest share of calls in the trust’s 25 year history.
The UK debt charity warned that people do not realise that using catalogues to buy products ties them into a consumer credit agreement with debts enforceable in the courts.
National Debtline has received over 7,000 calls from people struggling with catalogue debts in the first quarter of 2012. It urges people who are struggling financially to seek help and free independent advice and not ignore the problem.
Money Advice Trust chief executive Joana Elson said: ‘Many people don’t realise that missing a payment on a catalogue debt will usually invalidate any special low or 0 per cent interest deal.’
‘Catalogue debts go largely unmentioned in public these days, but advisers at National Debtline hear from nearly 100 people every day struggling to repay such debts.
‘Many people might be surprised to hear we get more calls on catalogue debts than on things like mortgages, rent and payday loans.’