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Stressed Out Shoppers are Turning to Store Cards
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Store Card Payments are ‘No Quick Fix’
Writes Dan Drage dan.drage@consumerchoices.co.uk
Defying all known logic and rational thinking, shoppers are turning to store cards in order to remedy their credit crunch woes.
A trend towards store card payment is emerging according to Debenhams Chief Executive Rob Templeman. Debenhams have additionally observed a distinct movement away from credit cards among shoppers. Said Mr. Templeman:
'We are seeing a lot more cash purchases and the number of store card transactions is moving up. There is a definite trend away from credit cards, and my suspicion is customers are using them to pay their everyday bills.’
Approximately 1.9 million UK credit card holders have had their credit limit enforcedly reduced in the last six months. Over 160,000 Egg customers had their accounts terminated earlier this year.
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"Interest rates on store cards can be anything up to 38%, which is higher than some adverse credit cards"
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Chris Eagle, Commercial Manager at Credit Choices, is concerned:
‘Store cards are the single most expensive way to borrow money, and that’s a fact’
He continues:
‘Store card payments are no quick fix, and they’re an unhealthy way to make purchases. Interest rates on store cards can be anything up to 38%, which is higher than some adverse credit cards. Consider applying for and using an adverse credit card before relying on a store card. An adverse credit card could help you restore an ailing credit rating if used sensibly.’
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