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An Intro To Weekly Payment Stores UK

by Jim ONeil on September 8, 2010

in bad credit shopping

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Just because you are in the brink of bankruptcy does not mean that you no longer have the right to purchase whatever it is that you need.
Despite the bad credit record you may have incurred, you still have the right to live decently by having the basic needs and domestic devices.

In the United Kingdom, this right is respected and promoted by weekly payment stores. These stores have given relief to many people who cannot pay lump sum for big items that they need for their house or to those who are also restricted to loan money or purchase goods with credit.

An increasing number of consumers are falling into unmanageable debts. Either this reality is brought about by an unstable employment or business as the UK is still reeling from the effects of the global economic crisis.

Without any Individual Voluntary Agreement or IVA’s to protect themselves, many have been declared bankrupt by virtue of county court judgments or CCJs. In deed of trust definition, a person who is declared bankrupt can no longer loan cash from any financial and commercial institution.

He cannot also purchase anything with credit. The CCJs for most people in the UK is, therefore, do not just shame but also paralyzes someone’s buying power.

In weekly payment stores, however, you can still get the necessary furniture and other appliances you may need without much worry. These require no credit check on its patrons so anyone troubled with a history of bad debts can still make purchases.

Any credit that has tainted your financial standing does not have an effect on your being a customer of a weekly payment store. While other stores may just give you a scornful stare, a weekly payment store will still give you the respect you are entitled to as a customer.

Weekly payment stores, as the name implies, offer easy installment plans for its clients. Instead of paying for an item once, no matter how costly it is, you can just pay it on a weekly basis.

This scheme is obviously lighter on the budget since it could stretch your income beyond the usual limits. You do not have to face the dilemma of buying a much-needed bed or spending the money instead for food. It will just take you, at most, three months to complete the installment.

You do not have to bring with you volumes of documents just to convince a weekly payment store on your credit history.

All that is needed is enough facts that confirm your ability to pay the weekly installments. This assures you that you can immediately take your purchase with you and take pleasure from it.

Benefits of Weekly Payment Stores

UK consumers realize many benefits when they use weekly payment stores.

These stores allow people to get what they need, while requiring affordable installment payments in return.

Here are the main reasons that consumers use weekly payment stores for their big-ticket item shopping needs:

  • Weekly, biweekly, or monthly cash payments rather than a single lump sum payment
  • Early repayment accepted
  • No deposit requirement
  • No credit check
  • Free delivery offered by some
  • Direct debit, in-store, and telephone payment options
  • Wide range of electronics, appliances, furniture, and gaming and computing equipment featuring popular brand names
  • Low price guarantees
  • Optional service agreement and lifetime return guarantee (for an additional cost)
  • Customer service assistance during account establishment

Drawbacks of Weekly Payment Stores

With the good, comes the bad and weekly payment stores are not free of drawbacks.

These stores are designed for consumers who cannot get credit elsewhere.

Weekly payment retailers are able to charge this captive audience a 29 percent or higher representative APR for purchases.

The high financing cost helps them to offset situations when consumers do not pay or default on their payments. The drawbacks to dealing with weekly payment stores include:

  • Financing is not guaranteed
  • Interest rate rivals that of a credit card
  • Total payment greatly exceeds typical selling price for the product
  • Missed payments can add to credit issues
  • Some weekly payment store staff have been known to harass customers for payment

How to Use Weekly Payment Stores

Most weekly payment stores allow consumers to apply for an account online, via the telephone, or at a store location. Completing the process usually requires a visit to the store.

Documentation that must be provided includes:

  • Proof of identity (government ID, passport, driver license, or birth certificate)
  • Proof of address (mortgage, tenancy, or rent card agreement)
  • Proof of income (bank, post office, or benefit statement or wage slip)
  • Contact information for one or more personal references

Approval is usually granted on the day that this information is provided at the local store.

Consumers sign an agreement and arrange for delivery of their purchases.

Delivery usually occurs within seven days unless a special order is involved.

Delivery drivers may be trained in product installation and demonstration, streamlining things for the consumer.

Ensuring a Pleasant Interaction with Weekly Payment Stores

Consumers should do their part to ensure a pleasant transaction with a weekly payment store.

Before signing a credit agreement, they should read the document carefully and ask questions about anything that is unclear or not mentioned.

Asking about the consequences of a late or missed payment helps consumers understand the worst that could happen.

These retailers can be very persistent when attempting to recoup their money.

Harassing phone calls, threatening letters, and calls to family and friends are not unheard of in this industry.

If consumers doubt that they will be able to pay for their purchase within the outlined period, they should look for an alternative way to get the item.

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