Wednesday 22nd August, 2007 

The popularity of store cards may be storing up a bad debt problem, Credit Action has warned.

The money education charity is cautioning people, who use store cards, to use this type of credit wisely. Chris Tapp, depute director of the charity, advises that consumers should shop about for cheaper forms of credit.

Whilst there are cheaper credit cards available, the charity's depute director urges consumers not to discount taking out a loan or even an overdraft as this may be a substantially cheaper form of borrowing, than a store card.

Unfortunately we use store cards without considering the alternatives. Store cards APR's are typically in the region of 27% which is a very expensive way to buy your clothes. Credit cards APR's are typically around the 18% and unsecured loans and overdrafts are even cheaper.

By continuing to use these expensive forms of credit it is obvious that problems are just around the corner. In order to prevent these debt problems from getting worse read through our website for advice or get advice from our forum. Written by Tweag