Warning issued over store cards

Those who use store cards to make purchases this Christmas are likely to receive a “rude shock”, David Kuo of Fool.co.uk has warned.

According to Mr Kuo, many store card companies are planning to increase the interest rates, which could put those who use them over the Christmas period at an increased risk of getting into debt.

And he also warned the cards themselves are becoming harder to successfully to apply for, noting that it is “going to be increasingly more difficult this Christmas” to get hold of one.

He also urged those making expensive purchases over the festive season to “put money aside if you haven’t already done so”, advice which could be useful to those looking to follow a debt management plan over the coming months.

Recent research from Birmingham Midshires has found fewer people are planning on paying for Christmas on credit, with 11 per cent of those surveyed stating they would relay on their credit card to make purchases.

By Tom Musk