Consumers given store card warning

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Consumers given store card warning

Mon 10th Dec 2007

Christmas shoppers should "steer clear" of using store cards to pay for the purchases, a Which? official has said.

Paul Davies, head of money research at the consumer group, said the warning particularly applies to consumers who are unable to pay off their credit balances in full each month.

In such circumstances consumers would be charged interest rates in the high twenties when there are much more competitive credit cards on the market, Mr Davies said.

"Unless you're very disciplined," consumers should avoid using store cards, the Which? official added.

Retailers often heavily promote store cards at the point of sale in the Christmas season and many people may be tempted under the pressure at this time of year, Mr Davies indicated.

"But this is even more of a reason to decline and choose a better way of borrowing if you need to," he stated.

Some 16 million Britons owe a total of around £2.2 billion on store cards, according to recent research by the financial comparison site uSwitch.

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