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Store cards "one of most expensive forms of credit"

UK consumers have been advised against taking out store cards from retail outlets in order to avoid paying out for excessive interest.

According to Thomas Charles, store cards are likely to be one of the most expensive forms of credit that people can consider, with an average interest rate of 29 per cent APR.

James Falla, managing director of Thomas Charles, commented that people should be very careful when taking out these cards and be sure to think carefully about paying off the balance as soon as possible.

"My advice 100 per cent is don't take out a store card full stop," Mr Falla said.

"You get sucked into those things because the classic sales technique is: 'Do you want ten per cent off your purchase today?' Of course you do - who would not want to save ten per cent?," he added.

Shoppers with store cards in the UK are paying an average of 62 per cent more interest than people who opt for credit cards, according to uSwitch.com, with the total amount of credit outstanding on such cards reaching £2.17 billion.

People with outstanding debt or who need to boost their income may consider taking out a personal loan.

See how much you could borrow with an unsecured personal loan from Lombard Direct.
© Adfero Ltd

25/02/2008 11:01:58

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