People with debt problems considering a store card should check the terms and conditions
People with debt problems considering a store card should check the terms and conditions
- Wednesday, 15 December 2010Consumers, including those with
debt problems, who are tempted to take out a store card to fund Christmas should shop around for the best deals.
According to Joanna Parsley, associate director of Credit Action, store cards can be a great temptation that could cause problems in the future.
She stated: "Signing up in store means for many consumers that reading the small print is a low priority.
"We would always urge consumers thinking of taking out a store card to make sure they know of any other fees or clauses that might impact on them down the line."
Fees could lead someone to get into
debt problems if they cannot afford to pay them off and interest accrues.
Ms Parsley also suggested that anyone thinking about borrowing to fund Christmas should do so as cheaply as possible by shopping around for the best deals.
She made these suggestions after Santander announced on December 10th that it will be changing some of its terms and conditions to the store cards it handles for shops such as House of Fraser.
The main change that could impact those with
debt problems could be the £10 fee that will be charged if the card is not used for six months.

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