Store Cards high on UK debt contributors list

22/01/2007

According to a survey from The Debt Counsellors it has been highlighted that one of the major factors that contribute to the UK debt situation has been store card debt.

The survey tells us more about the UK debt situation and in particular how store cards contribute to debt. Credit cards took the lions share that affected UK debt, however more than 41% of those people who have debt issues owed money on store cards.

Many people used store card during the recent festive season and are now feeling the real impact. Traditionally, many store cards bear higher interest rates than conventional credit cards.

January statistics from Alliance and Leicester Personal Loans state that 23% of people used their store cards during the festive season last year.

According to senior counsellor John Porter for Debt Counsellors “many consumers are mounting up store card debt by using their plastic in the wrong way”.

"Store cards can be tempting because of free gift incentives or offers of discounts. It is fine to take advantage of these but the balance must be paid off immediately, otherwise excessive interest fees will be incurred. He added.