Store Card Debt Help
Purchase anything from any major high street store and see how many times you are offered credit in the form of a store card. Its unbelievable! They usually come with 10% off your current purchase or a 0% interest free introductory fee, very similar to credit cards. However, you must be careful with this type of borrowing. Many store cards come with extremely high rates of interest (typically 25%+) and if your not carefully, your finances could be spiralling out of control and you could soon require some professional debt help.
Some tips to keep in mind when taking out Store Cards;
Pay off your balance
Make sure you pay off your balance in full every month and don’t let it build up. It will take you longer to clear a debt from a store card than a credit card.
Check the APR
Check the Annual Percentage Rate (APR) on the card before you take it out. Keep in mind that many credit cards have a much better rate and usually come with more benefits than a store card.
Can store cards affect my credit rating?
Remember store cards are exactly like credit cards. If you apply for to many in a short period of time you might end up getting refused and it could temporarily damage your credit rating. If you are about to take out a loan or a mortgage your application could also be affected. If you need to apply for another form of credit, leave it at least 3 months before applying.
In some instances we can profit from store cards using their benefits;
Get the initial discount offers
Take advantage of the 10% (approx) introductory rate and then don’t use it again
Get the membership benefits
Some cards offer benefits such as if you spend over a certain amount you may get 6 months interest free. So if you buy an item for £160, divide this by 6 which would give you 6 payments of £25. Thus keeping the majority of money in your bank and gaining the interest from it. Stick to it thought! If you don’t this is where you will end up in financial trouble. If you don’t you item will end up costing you more in the long run.
There is only way to beat the credit card / store card system and that is to be strong willed! Pay your balances off in full and stick to your payment programme.
Professional debt help
If you have got into financial trouble with your credit card or store card, whether you have over spent and cannot afford the repayments or you have taken out a loan to consolidate your debts, give us a call at the UK Debt Advisor free on 0800 043 2027 for professional, no obligation advice or use our free call back service.