How to get out of catalogue debt
Catalogue accounts often carry some of the highest interest rates of any credit. Here is how to stop the balance growing and every realistic way to clear it.
Applies to: England, Wales & Northern Ireland
What to do now
- Stop ordering on the account while you clear it.
- Check any buy now pay later end dates on your statement.
- If payments are unaffordable, ask for a freeze — freeze interest letter.
Why catalogue debt grows so fast
Catalogue credit is often priced well above a typical credit card, and the minimum payment can be low enough that most of it goes on interest. Many accounts also offer “buy now pay later” on individual orders: if the item is not paid off by the end date, interest is usually charged back to the date of purchase.
Every route, side by side
| Route | How fast | Cost | Credit file | Good to know |
|---|---|---|---|---|
| Pay a fixed amount each month | Depends on the amount | Nothing extra | Improves as the balance falls | Use the payoff calculator to see how long. |
| Ask for reduced payments and frozen interest | Slower, but the balance actually falls | Free | May show an arrangement to pay | Lenders must consider it; they do not have to agree. |
| Debt management plan | Often several years | Free from debt charities | Usually shows arrears, an arrangement or a default | Informal: creditors are not bound by it, but most cooperate. |
| Full and final settlement | Immediate, once accepted | Needs a lump sum | Shows as partially settled | Get the acceptance in writing before you pay. |
| Debt Relief Order | 12 months, then written off | Free to apply | Recorded for six years | Debts under £50,000, spare income £75 a month or less, assets of £2,000 or less (plus one vehicle up to £4,000), not a homeowner. |
| Individual Voluntary Arrangement | Usually five or six years | Fees come out of your payments | Recorded for six years | Legally binding once approved; usually for larger debts. |
| Bankruptcy | Usually discharged after 12 months | £680 to apply | Recorded for six years | You may lose assets, including equity in your home. |
The table puts the routes side by side; it is not a ranking of what is best for you. Which fits depends on your income, what you own, where you live and what you owe, so check with a free adviser before choosing a formal solution. In Scotland the formal options are different — see debt solutions in Scotland.
If the credit was unaffordable
Lenders must check that credit is affordable before lending and before increasing a limit. If you think a catalogue firm kept increasing your limit when it could see you were struggling, you can complain to it and then to the Financial Ombudsman Service.
You never have to pay for debt advice. MoneyHelper (government-backed), StepChange, National Debtline and Citizens Advice all give free, confidential advice with no obligation.
Common questions
Is catalogue debt a priority debt?
No. Catalogue debt is non-priority: deal with it after rent or mortgage, council tax and energy. But it still needs dealing with, because it can end in a default and court action.
Can a catalogue company take me to court?
Yes. If the account is defaulted and not repaid, the catalogue company or a debt purchaser can issue a County Court claim, after first sending a letter of claim.
Do catalogue debts get sold to collectors?
Often, yes. If you get a notice of assignment, the new owner takes over the debt on the same terms.