Store Card Debts

Store card debt is a growing concern, and while they are not all bad if you use them correctly, you must be well disciplined and repay what you owe each month, or the debts can start to swiftly build up.

So, What Is A Store Card?

Store cards are, essentially, credit cards that you can only use in one store or group of stores belonging to a specific retailer. You use the card to buy the things you want and, ideally, pay it off at the end of the month and, like credit cards, you’ll be charged interest if you don’t. However, the interest rates are often much higher than your standard credit card – around two-thirds of store cards charge over 25% interest!

So why would you agree to get a store card? Well, in order to get you to use their store’s card, you may have noticed that the checkout staff offer you a discount on that day’s shopping if you sign up, and after that you may be offered vouchers or store discounts. There is an argument here for mis-selling, as the counter staff are very rarely trained financial advisers, and are usually incentivised to sell as many as they can. In many stores you are not even credit checked to ensure that a store card is suitable for your financial situation.

Store cards can often be confused with branded credit cards (such as Tesco, Sainsbury’s and John Lewis) which are standard credit cards that can be used anywhere, just with the store’s branding and possibly some benefit if you use the card in their stores. A store card is also not the same as a loyalty card (Nectar or Tesco Clubcard) which allows you to get points as you spend which can redeemed later on for goods.

As when signing up for a credit card, make sure you check the Annual Percentage Rate (APR) before agreeing to sign up to a store card, the interest rates are usually much higher than a standard credit card, which means that if you don’t pay your card off in full in each month, any savings you may make on the day, are quickly wiped out with debt.

Can’t Pay Your Store Card Debt?

If you are struggling to repay your store card debt, don’t panic! Contact Debt Assist UK now and talk to one of our friendly advisers. Store card debts are treated in exactly the same way as credit card debts and our advisers will find the best solution to get you out of this situation. We pride ourselves on our customer service and if we can’t help you, we will gladly point you in the direction of someone who we believe can help; and there is absolutely no obligation to use any of our services even after talking to us (but we believe that we’re the best, so why wouldn’t you?), so what have you got to lose? Contact us now or call us on 0800 048 9555.