Expert: Store cards are a very real form of debt

By Sarah Engle, Thu 25 Feb 2010 - Published in Credit Cards

Brits should consider store cards as a very real form of debt, rather than failing to see them as real money.

The Consumer Credit Counselling Service said that people can go over budget on store cards and should make sure they keep tabs on how much they are spending on them.

Tom Howard, a spokesperson for the organisation, commented after insolvency trade body R3 said unqualified shop staff should not be allowed to sell store cards.

The expert said: "Consumers need to be aware of what they are committing themselves to.

"Consumers must always read the small print, and ask themselves if they really need a store card."

He added that Brits should also look at the interest rate that they will be charged, what happens if they default on payments and the benefits of getting a store card.

R3 called for the changes to the system after its research found that two-thirds of insolvency practitioners have dealt with cases where people have signed up to store cards without understanding the rates and fees involved.

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