Store cards "are still more expensive than credit cards"
By MoneyhighStreet Staff.
Date: June 9, 2008
New research has indicated that consumers would be better off using credit cards, rather than expensive store cards.Figures released by Fool.co.uk showed that there are 11 million people in the country with store cards and that these people are paying up to 50 per cent more interest than they would be in credit cards.Rules introduced by the Competition Commission last year were supposed to reduce the interest rates charged on store cards. However, the study found that the average rate charged on this sort of borrowing has fallen just 0.7 per cent since May 2007, to 24.3 per cent APR.
Store cards are the devil in disguise,commented Ed Bowsher, a savings expert at Fool.co.uk.They initially offer attractive benefits and bonuses, which can be hard to resist - but there is a downside to grabbing these discounts and deals.If you''ve spent on a store card and are still paying off the balance, that debt could be costing you far more than it needs to. However, by making use of a zero per cent balance transfer credit card, you could avoid paying any interest for up to 15 months.Recently, Experian said that consumers in financial difficulty should consider debt consolidation as a way to control their situation.
Source:http://www.moneyhighstreet.com/finance-news/376/
