Store credit cards are one of the costliest ways to borrow but the financial distress of many shoppers has led to an increase in their usage. Sean Gardner, chief executive of website MoneyExpert said, ‘you wouldn’t be motivated to spend on a store card unless you had to.’

A poll recently taken by GfK NOP showed that consumer confidence had reached an all time low. These recent difficulties are similar to that of 1990, the last recorded recession. Alongside falling house prices and the rising costs of fuel, food and other household costs, approximately 1.8 million Britons had had their credit limits cut over the last few months. 

Debenhams chief executive Rob Templeman said, ‘We are seeing a lot more cash purchases and the number of store card transactions is moving up.’  In order to keep afloat some consumers have to rely on their store cards instead of credit cards, in more recent months more people are even using their store cards to pay their everyday bills.