Many people choose to buy clothes and other products from catalogues, so they can spread the cost over a number of payments. It might seem more affordable, but catalogues can be an expensive way to borrow. 

If you’re struggling with catalogue debt, don’t worry, it’s important to remember you’re not alone. We’re here to help you find relief from debt stress.

Catalogue credit is a way of buying things, normally by post, and your payments are spread over weeks or months.

You can use your own paper catalogue, shop online or buy through an agent who is often a friend, neighbour or relative. The agent usually earns a commission on what they sell.

Catalogue credit is often called ‘mail order’ credit or a ‘shopping account’. One of the best-known catalogue companies is Littlewoods.

Catalogue credit is sometimes interest-free, as long as you repay the cost of the item within a set period of time. This is usually between 3 and 12 months. If you don’t repay within this time, interest can build up quickly.

If you buy more expensive items, the catalogue company may charge interest over a longer time. Their interest rate tends to be quite high. It is a good idea to shop around to see if you can get the same products cheaper elsewhere.

Added extras you might not need 

Catalogues might also offer insurance for products. This is sometimes called ‘shopping insurance’ and it promises to protect anything you buy. These policies can be expensive, and they don’t cover everything. You might not need the extra protection, for example, there might be a long guarantee on the product you are buying. Check the small print carefully.

Some catalogue companies are licensed as moneylenders with the Central Bank of Ireland.

This is because they charge more than 23% APR (Annual Percentage Rate).  If the interest rate they are charging you is more than 23% APR, you have the same rights as you would in a moneylending agreement.