"Sting-in-the-tail store cards" may cost over the odds
14/08/2008
Using store cards could increase the price consumers pay by a quarter, Alliance & Leicester has warned.
Store cards carry an average interest rate of 26 per cent – a total of three times more than a "competitive" personal loan – meaning summer bargains may end up more expensive than shoppers realise.
The bank said people who have run up debts from store cards and other means may want to consider a consolidation loan to ease the burden.
Personal loans manager Mark Boyle urged consumers to assess their debt problems.
"For those who wish to make their debt easier to manage, taking out a personal loan and consolidating it into one easy-to-manage chunk may be a wise option," he said.
According to the research, nearly a quarter (24 per cent) of British people have store cards that could be costing them money.
In related news, Fool.co.uk has said it is "hardly a shock" that consumer confidence has recently declined with living costs rising.
