Secured loans and tackling "expensive" store card debt
25/02/2008Consumers have been advised again this week on the dangers of generating debt with expensive store cards.
According to a spokesman for debt consultancy group Thomas Charles, store cards are "probably the most expensive form of credit" available and can leave many people seeking financial help later, such as secured loans or debt consolidation.
James Falla, managing director of Thomas Charles, said recent instability in the financial market appears to have had little affect on the number of people being able to obtain store credit but advised consumers not to be tempted by special offers.
"My advice 100 per cent is don't take out a store card full stop … the average store card is 29 per cent [annual percentage rate]. It's very, very high and you get sucked in to those things," he said.
He added that for those thinking of using a store card to take advantage of opening offers destroying the card immediately after was advisable but that it was important to remember that this still generates an outstanding balance.
Many people choose to face their expensive credit or store card debts with secured loans as they often help to spread the cost of their repayments in a more manageable way.
 © Adfero Ltd
<< Back to News page
|