A catalogue I have an account with are threatening to pass my debt to debt recovery what does this mean?

They will collect the money on behalf of the catalogue. They send you a letter and if you contact them they will allow you to pay them off in smaller amounts that are affordable to you.

The only time they involve bailiffs is if you ignore the letter and do not contact them.

The only disadvantag of this is you will now have a low credit profile now which can affect you when borrowing.

It means the debt recovery have bought the debt and will take you to court to get money back if you do not pay them back.

But going to court is not all bad since you can plead your case and maybe arrange fair repayments. A company cannot take off you what you do not have, and a court will address this issue. Go to your local Citizens Advice Bureau they are great at this sort of thing.

If the catalogue or debt recovery refuse your suggested repayments then yes by all means let a court do this for you. They will take in account of your earning, cost of living, expenses and what they think you can afford to pay. See the C.A.B. first and do not let your catalogue or debt agency bully you, even though you owe money you still have legal rights and they are hoping you will buckle first.

Only offer what you can afford to repay, sorry but you have to live too. But do NOT get into any more debt in the mean time.

You did the right things, no bailliff will come since you will be threatened with court proceedings first. A normal procedure with people in your financial situation. Do not be afraid it is not a criminal court. Bailiffs are a last resort and normally that is because you do something like ignore judical agreements by you and the court.

A debt recovery agency will typically buy the debt at a discount price from your creditor. The creditor gets paid most of the money you owed so happy with that and then the debt recovery agency will get all the money you owe and make a profit on the difference it bought the debt for.

They will send you a notice of outstanding payment to be paid on a certain date or they will issue a court summons. Sometimes this is the best way to go. Contact your C.A.B they have had more than enough expertise in this.

Debt recovery is when they sell your debt on to a debt collections agency. Often you can still negotiate terms with them but i've found from past experience that they often want the debt cleared within 12 months. If you have trouble with them i found the CAB very helpful. You can send letters to the company's with a financial report to show how much money you have and how much you can afford to pay each of them each month. Making mortgage/ rent, utilities and the arrears of, food and clothing priority. The CAB gave me figures that are seen as being acceptable costs of each that is taken into account before you repay anything.

going to a debt recover company will cost you more as they will charge fees to recover the money owed get back in touch with the catalogue company & arrange a payment scheme do not default on this explain your situation they should help or go to citizen advice get them to contact your creditors for you

Goodness gives you some good information, but consider whether any of your catalogues, store cards, credit cards or personal loans were taken out before 1 April 2007. If so it may be possible to get them legally cancelled, so solving some of your problems. The website www.bdebtfree.info can help you with this.

Go to the Citizens advice bureau. They will sort all of this out for you, and you dont pay them anything. They will negotiate the payments down to what you can afford.