What to Do With Catalogue Debt in My Name?
For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.
For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.
Are you thinking about how to pay a catalogue debt? Or are you worried about what might happen if you can’t? Our guide to ‘Catalogue Debt in My Name! 2023 Guide’ is here to help.
Every month, more than 170,000 people visit our website seeking advice on debt matters, so you’re not alone.
This easy guide will tell you:
- What to do if a catalogue debt is in your name.
- How to find out if the debt is real.
- The steps to take to pay off a catalogue debt.
- Options if you can’t pay your catalogue debt.
- How to get expert help and advice.
Citizens Advice says that catalogue shoppers who miss payment deadlines get charged very high fees, sometimes more than twice what they borrowed.1 We know that dealing with debt can be hard and concerning. But don’t worry; we’re here to help you understand what you can do and how to do it.
Let’s start looking at how to manage your catalogue debt.
A Family Member Used My Name to Open a Catalogue Account
It’s not unheard of for a family member to open an account and build up catalogue debt in another family member’s name. This puts people in a very difficult situation. The options are limited, but include:
- Asking the family member to clear the debt and accept the damage it has done to your credit score
- Reporting the act of fraud to the authorities
- Clearing the debt out of your pocket
Catalogue Debt Due to Identity Theft
Identity fraud is when your information is used to gain credit or buy goods. It could be used to get credit cards, open bank accounts, obtain ID and order goods by using your details. Action is needed when you suspect identity fraud has been committed.
Get a copy of your credit report and check the activity that has taken place. You may find other debts have been accrued.
Contact each creditor and inform them of the fraudulent activity. They might offer to refund you, in which case they become the victim in accordance with the Home Office Counting Rules. This doesn’t always happen, but it is worth contacting the catalogue company to see what they can do. You should inform your bank and report the fraud to Action Fraud on 0300 123 2040.
Action Fraud will give you more information on the steps you can take to recover the losses.
What Happens if I Don’t Pay My Catalogue?
If you miss a payment or more the catalogue company will contact you and ask you to catch up. This will include the amount of all the payments you have missed, plus additional charges such as late payment fees and interest. If you don’t make the catch-up payment your account will default. Defaulting on accounts does harm your credit score.
The catalogue company will take further action if you fail to catch up with the payments, don’t get in touch to discuss a repayment plan or ignore the debt entirely. Debt collectors may contact you and there’s a risk of court action if you don’t find a way to manage the debt that is suitable for you and accepted by the debt collector or catalogue company.
How a debt solution could help
Some debt solutions can:
- Stop nasty calls from creditors
- Freeze interest and charges
- Reduce your monthly payments
A few debt solutions can even result in writing off some of your debt.
Here’s an example:
Situation
| Monthly income | £2,504 |
| Monthly expenses | £2,345 |
| Total debt | £32,049 |
Monthly debt repayments
| Before | £587 |
| After | £158 |
£429 reduction in monthly payments
If you want to learn what debt solutions are available to you, click the button below to get started.
How Do I Clear Catalogue Debt?
You’ll need to clear the catalogue debt if the debt is yours or you have accepted that a family member or friend will not repay you. Initially, you’ll have monthly payments that you need to keep up with. There is a minimum payment amount, but this amount doesn’t cover the cost of interest. Therefore, whenever possible you should pay more than the minimum amount.
Only paying the minimum amount can lead to persistent debt. If you’re struggling to pay your catalogue debt back, there are many solutions available – please take a look at the table below to learn more.
| Catalogue Shopping Debt Help | How to Tackle Your Catalogue Payments |
|---|---|
| Installment Plans | Negotiate smaller, budget-friendly payments with your catalogue company |
| One-Off Payment | Pay a lump sum to reduce your debt and possibly get a discount for settling in one go |
| Company-Specific Hardship Programs | Inquire about any hardship assistance, which may include payment holidays, reduced payment plans, or even temporary freezes on interest |
| Budgeting and Financial Advice | Reach out to financial counseling services or debt charities for budgeting advice and help with negotiating debts |
| Debt Solutions | Explore your options for managing catalogue debts, such as IVAs or DMPs |
| Government Schemes | Government aid such as Universal Credit Budgeting Advances or Local Welfare Assistance can help with your overall financial situation, and potentially free up funds to pay off your catalogue debts |
| Interest-Free Payment Options | Transfer debt to an interest-free credit card or loan to stop the debt from growing and make repayments more manageable |
Can I Get a CCJ for Not Paying My Catalogue Debt?
If you stop paying the catalogue the debt is passed to debt collectors. Debt collectors will use letters and phone calls to try and get you to pay. Failing to talk to them and produce a repayment plan can lead to legal action. You may find yourself threatened with a CCJ.
If you are dealing with debt collectors, you can follow my guide to deal with them. Knowing your rights should help keep the situation as stress-free as possible.
If you need more advice, or advice about your specific circumstances, don’t hesitate to contact a debt charity fore free advice. I have linked a few options below.
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Can I Get a Debt Solution?
If you have catalogue debts that you are struggling to pay, you may want to consider a debt solution.
There are several different debt solutions available in the UK, so I recommend speaking to a debt charity as soon as possible. Their advisors will be able to look at your finances in detail and help you work out which debt solution will work best for you.
I have linked a few charities that offer these advisory services for free below.
Debt Management Plan (DMP)
A DMP is an informal debt solution that lets you pay off your debts via a single monthly payment.
Because it is informal, it is not legally binding so you are not tied into a DMP for a minimum number of payments.
Individual Voluntary Arrangement (IVA)
An IVA is a formal agreement between you and your creditors. You agree to pay a monthly sum that is distributed amongst your debts, and your creditors agree not to contact you during your IVA.
IVAs typically last for 5 or 6 years, and any outstanding debt is wiped off when it ends.
Keep in mind that IVAs are not suitable for everyone. You need to owe several thousand pounds to more than one creditor to be eligible. You also need to demonstrate that you have some disposable income every month.
Trust Deed
IVAs are not available in Scotland. Instead, you will need to opt for a Trust Deed.
Trust Deeds work in the same way as an IVA – you pay an agreed sum each month that is shared amongst your creditors, they can’t contact you, and any leftover debt at the end of your Trust Deed term is written off.
Debt Relief Order (DRO)
A DRO is a good option for those facing financial hardship with no assets and little income.
For 12 months, you make no payments, but your creditors freeze your interest and don’t contact you.
If your finances haven’t improved during this year, you may be able to write off your unsecured debts.
Bankruptcy
If you have debts but no realistic possibility of ever paying them off, you may need to declare bankruptcy.
Bankruptcy has an unfair stigma attached to it as it may be your only way of getting a financial fresh start. That said, it is a serious financial situation that should not be taken lightly.
Sequestration
Sequestration is the Scottish version of bankruptcy.
If you have little income and no valuable assets, you may be able to apply for a minimal asset process bankruptcy (MAP). A MAP is a quicker, cheaper, and more straightforward version of sequestration, so worth considering.
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