Credit Cards -
Store cards "the most expensive form of credit" - 22/02/2008
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Debt consultancy firm Thomas Charles has said that store cards are "probably the most expensive form of credit that anyone can consider".
James Falla, managing director of Thomas Charles, said: "My advice 100 per cent is don't take out a store card full stop."
Recent research has revealed that the average store card APR is 26 per cent – this is ten per cent higher than the average credit card at 16 per cent APR. The total amount of credit outstanding on store cards has reached £2.17 billion.
"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?' Of course you do – who would not want to save ten per cent? But in order to get that ten per cent off, you need to take out a store card," Mr Charles said.
"If you don't intend to pay that balance off straight away or at the end of the month you're probably then facing one of the most expensive forms of credit."
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