24 November 2008
Christmas shoppers are being warned that using store cards to pay for gifts and other festive goodies could cost them more than using credit cards.
According to uSwitch.com, store card users could pay 47% more in interest payments than those using credit cards this Christmas.
The independent price comparison site found that there are almost 16 million store cards in issue in the UK, carrying outstanding balances worth a total of £2 billion.
It calculated that using store cards for festive shopping could cost consumers £1.9 billion in interest - over £1.4 billion more than using credit cards.
Louise Bond, personal finance expert at uSwitch.com, said that with household budgets under pressure, consumers need to be careful about how they spend money as well as the overall amount.
"There are a number of competitive 0% credit card offers in the market and consumers need to shop around for the best deals," she remarked.
uSwitch.com is also urging consumers to use credit card cheques as a last resort only, since hefty fees and interest rates could cause serious financial problems.
© 2008 Adfero Ltd
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