Robin Amlot, senior editor of AWD Moneyextra, the financial service information website, has hit out at the fact that not only are the interest rates high, the people pushing the card are often clueless about the product they are offering.
With a temptation to promote the benefits of the cards only – such as discounted clothing and purchases – consumers are often left unaware and uninformed of the practicalities of having store cards.
“They [stores] should make it clear exactly what you are getting into,” Mr Amlot said, adding: “It would help if the sales people offering these cards knew something about the product.”
At a time when consumer debt has surpassed the £1 trillion mark, a proportion of this is credit card debt and store card debt. With some of the latter carrying rates as high as 30 per cent, Mr Amlot suggested that warnings on statements may not be enough to highlight the problem.
“Putting a warning about the high rate of interest on statements will only make a difference if people actually read them as opposed to just looking at the total or minimum payment,” he said.