Store and Credit Card Debts
Credit cards are the most common type of personal debt, with store cards not far behind. These cards can lead to spiralling financial problems with the tendency to spend on consumer goods – such as groceries, clothes and holidays – with a buy now, pay later mindset. However, by the time ‘later’ comes around, interest and charges can leave your balance looking much bigger than initially anticipated.
Difference Between Credit Cards and Store Cards
Although these cards look similar and allow you to spend and pay later, there are significant differences between credit cards and store cards. You can use a credit card practically anywhere; payment networks, such as Visa and MasterCard, allow for global spending but with store cards you can only use them within that store. For example, a Debenhams store card can be used at any Debenhams across the UK, but only Debenhams will accept it.
Store cards are widely recognised as ‘the devil’s cards’; and it’s easy to understand why. It can be tempting to take out a store card (and crucially, a binding consumer credit agreement) when making a purchase in that store and the customer service adviser offers you the card which, when taken out there and then, will allow for discounts on your purchases. This is how a lot of store card accounts are opened. But the reason they’re dubbed devil cards is due to their huge rate of interest; many store cards tend to charge 25% and upwards whereas credit cards tend to offer long interest-free periods and a standard rate of around 17%-18%.
The technique to using a store card safely is to take out the card (if you really wish to), benefit from the immediate discounts and then pay it off straight away, so you never have to pay a penny in interest.
If you forget to pay of the store card balance, the card operators will hit you with sky-high interest, often ranging between 25% and 30%.
Struggling with Store Card or Credit Card Debts?
Taking out a store card or credit card can seem like an harmless and useful tool at first but it’s easy to fall foul of the fees and interest that is applied once you fail to repay the balance each month. Debts of this nature are deemed ‘unsecured debts’ and we can help individuals across Northern Ireland that are suffering with financial problems stemming from credit and store cards through a number of official, legal procedures that protect you from creditors.
Speak to one of our friendly, experienced advisers for free today.