Store cards ‘can co-exist with credit debt management’
It is possible to undertake a process of credit debt management and still hold store cards, according to the British Retail Consortium (BRC).
The trade association suggests that consumers should be given a wider understanding of the products and allowed to decide whether they can afford repayments.
While many store cards offer interest-free periods of up to 56 days, a Moneyfacts study found they have an average interest rate of 24.3 per cent, compared with a typical 16.72 per cent for traditional credit cards.
BRC press officer Dale Atkinson states: “These cards offer a range of benefits to customers, including special promotions for cardholders.”
He adds that consumers should be able to choose whether to accept the lending “as long as the rate of interest on store card debt is made clear to customers”.
Those who find store cards have impacted on their credit debt management could benefit from expert advice.
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