'Beware the bind of store cards'
10 December 2007
It's convenient and easy, but using a store card to fund your festive needs is also pricey in the long-term.
New research shows that shop cards have an average APR of 26 per cent, which is ten per cent higher than the typical APR for a credit card.
This equates to £892 million more in interest over the next year.
A Playstation 3 bought in Argos with a store card for £349.97 could actually end up costing £611.28, uSwitch.com found.
Meanwhile, a suit bought in Burtons costing £150 could actually set you back £233.98 with a store card.
Mike Naylor, Personal Finance Expert at uSwitch.com, said: "People tend to get carried away with Christmas spending; we just hope they seriously look at how much more store cards will cost them and ensure they use the best deals available.
"Ultimately, these cards are generally an extremely expensive form of credit and consumers should consider the long-term costs carefully before using them."
There are 13.4 million people in the UK who have store cards, with a collective outstanding balance of £2.17 billion.
