Catalogue and store card debt: what happens, and what you can actually do
Catalogue accounts and store cards are regulated credit like any other, but they carry two specific traps: interest rates well above typical credit cards, and 'buy now pay later' promotional periods where the entire deferred interest is added retrospectively if you miss the deadline by a single day. Here is the escalation process in order, what your rights are, and how this debt is treated in each UK debt solution.
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Where this debt sits in the hierarchy
Nobody can take your home or your liberty for this debt. That does not make it harmless — a default, a County Court Judgment and enforcement are all real — but it does mean rent, mortgage, council tax, energy and court fines come first if you have to choose.
What actually happens, in order
Missed payment
Charges are applied and any promotional interest deal is usually lost.
Deferred interest applied
If a buy-now-pay-later period ends unpaid, interest accrued across the whole period can be added at once.
Arrears notices, then a default notice
The same statutory process as any regulated agreement.
Default registered
Six years on your credit file from the default date.
Sale to a debt purchaser
Very common with catalogue debt, often at a substantial discount to the balance.
What people are not usually told
Because these debts are frequently sold on cheaply, purchasers are often more willing to accept a reduced full and final settlement than the original retailer would be. Separately, if the account was opened with minimal affordability checking, or the credit limit was repeatedly increased without assessment, an irresponsible lending complaint is worth making — it is free and can result in interest and charges being refunded.
How this debt is treated in each solution
Every formal solution handles debts differently, and this one is no exception.
| IVA | DMP | DRO | Bankruptcy | |
|---|---|---|---|---|
| Formal insolvency | Yes | No | Yes | Yes |
| Where it applies | England, Wales and Northern Ireland | The whole of the UK | England and Wales (Northern Ireland has its own version with different thresholds) | England, Wales and Northern Ireland (Scotland calls it sequestration) |
| Typical duration | 60 months, or 72 with home equity | Until the debt is repaid — no fixed end | 12 months | Discharged in 12 months; payments up to 3 years |
| Monthly payments | Monthly, affordability-based | Monthly, flexible, changeable | No payments at all | Only if you have surplus income |
| Your home | Excluded; equity sets the term | Not affected | Not available to homeowners | May be sold |
| Credit file impact | 6 years from the start date | Defaults recorded, 6 years each | 6 years from the order date | 6 years from the order |
| Public register | Listed on the public Individual Insolvency Register, which anyone can search. Your address can be withheld only on evidenced safety grounds. | Nothing public. A DMP is a private arrangement. | Listed on the public Individual Insolvency Register. | Listed on the public Individual Insolvency Register, and in some cases advertised more widely. |
| Fees | Paid from your monthly payments | Free providers available | Free — no application fee | £680 application fee |
| Creditor protection | Legally binding on included creditors | None — entirely voluntary | Full protection, then write-off | Full protection, then discharge |
Arrears existing at the start date can usually be included in a formal solution. Ongoing liabilities — this year's council tax, current rent, current energy usage — cannot be, and must be budgeted for separately.
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Common questions
Is catalogue debt a priority debt?
No. It sits with credit cards and personal loans as non-priority. However loud the letters are, the consequence of not paying is a damaged credit file and possible court action, not losing your home. Priority debts come first.
Related guides
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