Borrowers urged to plan ahead

Shoppers who borrow money using store cards have been advised to plan ahead to avoid what could be a serious debt management headache.

With Halloween approaching, Nationwide has warned that credit consumers could find themselves facing some frightening repayment demands if they are careless about their store card borrowing.

In fact, the building society suggests that while introductory store card offers might be tempting, consumers should do their best to avoid what it calls the “horror of high interest rates”.

Jeremy Wood, divisional director at Nationwide, said: “Although store card introductory offers look great at face value, borrowers who are unable to clear their balances each month could find that they are paying over the odds.

“By taking a Nationwide credit card, shoppers benefit from lower interest rates and zero per cent introductory offers on purchases and transfers, making their money go that bit further when treating themselves.”

Figures compiled by Credit Action show that the typical British household now pays close to ten per cent of their take home wages on servicing interest on debt arrears.