Perils of catalogue debt

Pressure on household finances is causing thousands more people to fall into unaffordable debt with mail order catalogues, according to the debt charity, the Money Advice Trust.

National Debtline, which is run by the charity, received a record 25,000 calls about catalogue debt last year, up 10 per cent on the year and nearly double the number received in 2007 before the credit crunch.

It's had a further 7,000 calls so far this year.

Families on tight budgets have been turning to catalogues to take advantage of keen prices and offers to buy now and pay later with no interest.

Then they find they can't settle the bill.

Catalogue debt is prompting more calls for help than payday loans, mortgages or rent.

The Trust says many people don't realise they are signing a consumer credit agreement, which means the debt is enforceable in the courts.

Nor do they understand that missing a payment on a catalogue debt will usually invalidate any special zero per cent interest deal.

Time for a health check

Facing up to financial problems is a big deal for many people.

Some put it off for 18 months or 2 years, even though they are falling behind on interest and other payments. By which time the problem is much worse.

So the new money Health Check from the government's impartial Money Advice Service is a useful tool.

And here's is my Fiddler on the Roof take on it. Remember "If I was a rich man, didle deedle didle...etc"

The check doesn't provide the sort of detailed advice that you would get from a debt expert and an investment specialist, but it will point you in the right direction.

In fact, if you own up to serious debt problems, it offers a quick route out of the questionnaire to an action page which offers instant help, including contact numbers for debt charities who will assist.

The Money Advice Service wants millions to try it out, with a target of 500,000 in the first year.

Let's hope the people who most need the help will end up taking the Health Check.

They'll need to be on a computer, on the internet and know about the service.