Very catalogue - ridiculous unaffordable interest, what should I do?

julie237 · 7 December 2017 at 9:50PM

Hi everyone,

I currently have a few small debts, which i have been able to handle until i got my latest statement from Very.
I am currently out of work and a single parent.
I owe Capital One about £900 which they have frozen the interest on and i am paying them £25 a month.
I owe Very £1,100 and my buy now pay later period with them is about to end on a total of £660. The estimated interest on this is over £100. Theres no way i will be able to afford it.
Should i get in touch and explain my financial situation to them?
I have had a DRO more than 6 years ago and have been considering if i should apply again. I have been doing ok with paying things off until i got the statement from Very. I didn’t realise the interest would be that much, and will no doubt steer clear of catalogues in the future.
Thanks for any help

FTBuyerGlasgow · 7 December 2017 at 11:19PM

Hi, I'd give Very a call to explain the situation. I've seen some other posters talk about getting a positive response out of Very.

Failing that, could you sell the things you bought from Very to help repay the debt? Or better yet, could you return the items to Very to cancel the agreement?

sourcrates · 8 December 2017 at 1:32AM

You can contact very, but it won’t stop the interest been added.

You are informed how much interest you will pay if you don’t settle the account before the BNPL period ends.

But as you are out of work now, that is bye the bye, the debt will just default if left unpaid, go through the collections process, and eventually get sold on.

Do you qualify for a debt relief order still ?

As that may be a better option whilst unemployed, the money your paying the other creditors should stop ideally, as you don’t want to be seen favouring one creditor over another, if you still meet the DRO criteria, save up the £90 fee and crack on with it.

National_Debtline · 8 December 2017 at 10:21AM

Hi Julie

Unfortunately interest does tend to be high once a buy now pay later period has ended. You may have a couple of options available, including the DRO you mention. Are the credit card and catalogue your only debts? And do you think when you get back into work you will still meet the DRO conditions? This is important to consider as you need to meet the conditions for the 12 months the DRO lasts otherwise it could fail.

Your other option is to try and negotiate a reduced payment and a freeze on interest. Your starting point is a statement of affairs (SOA) to work out how much (if anything) you can afford to offer. You'll find a SOA here http://www.stoozing.com/calculator/soa.php. You're welcome to post it back on here to get more advice on your best options.

Negotiating over the phone can sometimes be tricky so it is an option to send your SOA in the post, along with a letter asking your creditors to accept your offer. If you need more detailed advice this is available from one of the free debt advice agencies.

Good luck

Susie
@natdebtline

Very catalogue - ridiculous unaffordable interest, what should I do?

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