Store card debt reaches £2.17 billion
The debt on store cards held by British consumers has now reached a total balance of £2.17 billion, it has emerged.
Recently-published research from financial services comparison firm uSwitch.com reveals that this debt is spread over 13.6 million accounts, with an average APR of 26.34 per cent on these cards.
Interest on individual store card debts was found to be 62 per cent higher than that levied on credit card debt.
Mike Naylor, personal finance expert, at uSwitch.com said: “People are typically lured into store card deals at the checkout because they will get a small discount on the purchase being made.
“In most cases, this discount will be completely negated by the high levels of interest incurred by those who do not pay the balance off in full every month.”
He added that the checkout of a department store is not the best location for consumers to make financial and debt management decisions.
Credit Action recently reported that 15 per cent of adults are experiencing financial difficulty with unsecured loans of over £10,000, according to research from Thomas Charles.
