Failing to pay your debts can affect your credit rating in the same way as missing a loan repayment or credit card payment.
If you fall behind with your catalogue repayments, in the first instance, your creditor will simply ask you to catch up with your arrears. If you are able to do this, then you will be allowed to continue making payments in the agreed way. If you are unable to pay, then the credit account will default. This will mean that your account is closed and you will be no longer able to make any purchases. This does not close the debts however.
Catalogue companies will often sell the debts to a Debt Collection Agency or they will take legal action to reclaim their lost money.
Catalogue debts are not like a Hire Purchase agreement. Your creditor will not attempt to repossess your purchased goods and you are not able to simply cancel the agreement and give the items back.
To find out more, take a look at our Catalogue Debt page.