Store cards 'cost £892m more'
Published On 10 December 2007
Shoppers using store cards to purchase Christmas gifts could find themselves paying far more in interest than those using regular credit cards.That's according to uSwitch, which found that store cards cost £892 million more in interest than other forms of plastic.
According to the comparison site's research, the average APR on a store card is 26 per cent, compared to an average of ten per cent for a credit card.
"People are typically lured into store card 'deals' at the checkout because they will get a small discount on the purchase being made," said Mike Naylor from uSwitch.
"In most cases, this discount will be completely negated by the high levels of interest incurred by those who do not pay the balance off in full every month."
The study showed that UK Christmas shoppers will spend an average of £863 each this festive period, which, with a store card, would cost £179 in interest compared to £123 with a credit card.
A recent report from Halifax revealed that adults in the UK will blow a combined £11.9 billion on presents this Yuletide.
