Store cards 'often taken out by confused shoppers'

Friday, May 7th 2010

Store cards are often signed up to by consumers who do not fully understand the terms and conditions, according to one chartered financial planner.

High interest rates can come with store cards and Martin Bamford, who is also managing director at Informed Choice, said people could be left with "expensive debt".

Debt is a particular risk for consumers who do not clear the balance on their store cards every month.

Instead, he advised: "You are much more likely to get a better rate of interest from your credit card, particularly if you move to a balance transfer deal in the future."

Many shoppers feel pressured to agree to store cards when at the till purchasing their items, Mr Bamford added.

A recent poll by MyVoucherCodes.co.uk found 42 per cent of consumers believed they were pushed into signing an agreement.

Of those who owned a store card, two-thirds said they were in debt because of relying on credit for shopping.