Store Card Debt Advice

Store card debt has become a fact of life for many consumers, and they have even been referred to as the “the devil in disguise”. The Tory Party believes that Britain is addicted to debt and are prepared to introduce new cooling off periods for customers who are issued with store cards, if they come into power. The Party claims that the UK owe over £2 billion pounds worth of debt on store cards alone with approximately 13.4 million in circulation.

If you are considering getting a store card or you are seeking store card debt advice, it is important that you are aware of the personal and financial implications of store card debt.

Store Card Debt

Store cards are branded which mean that you can only use them in one particular shop or shops under the same chain. Like a credit card as you will be given a credit limit and your purchases will be subject to an annual interest rate (APR). It is important that you are aware of the APR as some store cards are charging up to 30%, which is almost double that of a traditional credit card.

store card debt

Store cards can seem very tempting as they often offer new customers a special introductory deals, such as a discount on your first purchase. But despite the initial benefits, there are many implications of a store card which needs to be considered. The biggest implication is the high rate of interest, as you will be paying back much more than the original item cost if you do not pay off the balance in full.

Please remember that store card debt can easily mount up and become very difficult to pay off. If it is an essential purchase then it may be better to pay for it with ‘real money’ so that you are not stung by high interest rates. One Advice would never recommend getting into more debt for a non-essential purpose, and we can offer free debt advice to help with your store card debt, please call our One Advice debt advisors on {Phone Number}.

How to Deal with Store Card Debt

If your store card debt is getting out of control, then you need to seek expert debt advice. One Advice can offer you a number of ways on how to deal with your store card debt, as well as other lines of unsecured credit.

Ways to deal with store card debt include:

Debt Management Plan: If you have debt levels under £15,000 then a debt management plan can be a good way for you to deal with your store card debt. It allows you to take control of your finances as you make one reduced payment which will cover all of your unsecured debt. This reduced payment should relieve any financial pressure to meet your priority debt, such as mortgage payment or utility bills. One Advice will deal with your creditors on your behalf and some are willing to freeze additional interest and charges on your store card debt.

Individual Voluntary Arrangement (IVA):
An IVA is suitable for those who have higher levels of unsecured debt, including debt from store cards, which is typically over £15,000. In the same light as a debt management plan, an IVA will allow you to reduce your monthly creditor payments. However it also offers you the additional benefit that you can write off your unaffordable debt. You and your creditors will come to a legally binding agreement about how much you can realistically afford to pay to your debts each month, and at the end of the IVA term any remaining debt will be cleared.

Bankruptcy: Bankruptcy is not the best way to deal with store card debt. Bankruptcy is a major financial decision to make as you lose control of your major assets and it can have implications for many years to come. One Advice would recommend that you seek out other debt solutions first.

Free Store Card Debt Advice

Whether your debts are from store cards, credit cards or unsecured loans. No matter what your level of debt or no matter how many creditors, we can offer you free store card debt advice to help you become free from your store card debt.