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Store credit card most expensive debt

Tue, 26 Feb 2008

Consumers should avoid store credit cards as they are "probably the most expensive form of credit " there is, it has been claimed.

James Falla, managing director of debt counselling service Thomas Charles, explained that compared to ordinary credit cards, store cards tended to charge much higher rates of interest .

He said: "The average store card is 29 per cent APR. It's very, very high, and you get sucked in to those things because the classic sales technique is: 'Do you want ten per cent off your purchase today?'"

Mr Falla added that it is fine for people to take out a store credit card for the ten per cent discount and then cut up the card.

He warned that anyone who did not do so and did not pay the balance of the credit card in full every month will be left with one of the most expensive forms of borrowing around.

According to uSwitch the average store card APR is 26 per cent - ten per cent high than the average credit card APR.
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