Help with catalogue bills/interest?

Mae85

Hi all, I did previously post this on a different section of the forum but was advised to pos it here!

Basically myself and my OH are on a joint esa claim, I have 2 catalogues (fashion world and studio) which I’ve had since way before me and him got together.

I owe £645 on fashion world and pay £28 a month ( this is the minimum payment and all I can afford, £20 of this is interest!) and £666 to studio which I pay £33 a month and £27 of that is interest.

Now I know what you’re thinking- why take out a catalogue if you are on benefits- but it seemed like a good idea at the time- I was struggling to buy clothes and xmas gifts so took out a catalogue and it has spiralled from there.

I do not use either catalogue anymore and just focus on paying th bill off (which is never ending as most of the payment each month is interest so essentially I am paying £7 a month off it) .

We are both struggling on the money we are on, he has CSA to pay, other bills and HMRC debt.

I was just wondering if there was any advice regarding these catalogues? Can I stop paying them or come to some kind of arrangement with them?

I’ve always been on esa even before meeting my OH, I know I shouldn’t have started them but there’s no point looking back now is there.

Any help I would appreciate.

sourcrates

Hi,


Catalogue companies are notoriously bad at doing payment plans, they may do a temporary arrangement for say 6 months, but then they would start interest and charges again.


If you default on payments, your account gets passed over to collections (same company-different dept) who may be able to make a longer arrangement with you, however the monthly payments tend to be on the large side, having said that, your debt is not massive, so that may work for you.


As always, write to the creditor, explain your situation, see what terms they can offer you.

Fireflyaway

I had a couple of catalogues and sourcrates observation is also what id say. They were not that helpful.
In the end my catalogues were passed to a debt collection agency who were actually easier to deal with. They stopped interest and agreed on an affordable repayment plan. I set up a standing order and forgot about it. Then after time they were cleared and closed off.
This method will screw up your credit score but do you really need it to be good? Depends on your plans.

Mae85

Thanks for the advice- the only advice I got on the other place I posted this was to not have an iPhone and stop paying the measly £18 a month I do for it and get my priorities right then I would be able to afford my catalogue bill lol

So I need to write to both companies and explain my situation and then see what they say?

enthusiasticsaver

Ideally you want them to stop interest so if the only way is to default then this may be what you have to do.

National_Debtline

Hi Mae


To negotiate a reduced payment plan and a freeze on interest you will need to complete a statement of affairs (SOA). This will show the catalogues your income and outgoings and what you can afford to offer them. You can complete one here http://www.stoozing.com/calculator/soa.php.


If it's all you can afford, you can offer them a token amount of £1 per month. Or even nothing if you have no spare money. If you have more available, split it proportionally between the 2 debts. If you have other debts they'll need to be included in the negotiations as it's important to treat all your creditors fairly.


If you need any help with this you can receive free advice from one of the debt advice charities. They'll have sample letters you can send with your SOA, and be able to explain other debt options you may have available.


I hope this helps.


Susie
@natdebtline

Mae85

Thanks for that. Been as our benefits are a joint claim, will I have to declare all of his and his ex wife!!!8217;s debt or just mine?

Karonher

Mae85 wrote: »

Thanks for the advice- the only advice I got on the other place I posted this was to not have an iPhone and stop paying the measly £18 a month I do for it and get my priorities right then I would be able to afford my catalogue bill lol

So I need to write to both companies and explain my situation and then see what they say?

You could go sim only as you don't need an iPhone. There are some good deals £6 or so a month. That would give you an extra £12 a month to put towards the debt.

Mae85

Lol I!!!8217;ve already had loads of people telling me to get my priorities right about this whole iPhone malarkey.

I!!!8217;ve also explained in that other thread that my phone is old. The battery dies after an hour of it being off charge, having to charge it at least 3 times a day. So I do need a new phone as again, I explained that our phones are our lifelines seen as neither of us go out due to our mental health issues etc. I!!!8217;m
Not explaining this again as it just gets me down.

marliepanda

Mae85 wrote: »

Thanks for the advice- the only advice I got on the other place I posted this was to not have an iPhone and stop paying the measly £18 a month I do for it and get my priorities right then I would be able to afford my catalogue bill lol

So I need to write to both companies and explain my situation and then see what they say?

I think being untruthful about your other post isnt helpful or fair to the many people who did post to help you:

https://forums.moneysavingexpert.com/discussion/5859884/struggling-with-my-monthly-catalogue-payments-on-esa&page=2

One member mentioned your phone. There was lots of good advice given by many many other members. The only other time it was mentioned towards the end of the thread was when you mentioned upgrading your phone when it was due and some people said that wasnt a wise decision and to go SIM only.

marliepanda

Mae85 wrote: »

I!!!8217;ve also explained in that other thread that my phone is old. The battery dies after an hour of it being off charge, having to charge it at least 3 times a day. So I do need a new phone as again, I explained that our phones are our lifelines seen as neither of us go out due to our mental health issues etc. I!!!8217;m

Without being rude, if you do not leave the house, why does it matter that you have to keep charging your phone? Even a small portable charger would help to get your debts sorted then you could upgrade to whatever you wanted.