Britons could be putting their finances in danger by taking out expensive store credit cards, one expert has warned.
The Motley Fool has claimed that UK consumers are "sleepwalking into danger", as store credit cards feature higher rates of interest that those available on the high street.
A recent study conducted by the company found that one in three Britons have no idea of the rate of interest on their store credit card, while one in sixteen of these fail to pay their balances in full.
Additionally, three per cent of respondents stated that "pushy" sales assistants had talked them into taking out a store credit card in the past.
David Kuo, head of personal finance at The Motley Fool, commented: "A significant minority may find that any benefits they had initially hoped for have been eroded by high interest charges because they have not paid off their balances in full."
He added that savvy shoppers could save on interest payments by switching their balance to 0% credit cards.
According to This is Money, store credit cards can offer benefits to consumers - provided the balance is paid off each month.
News Side
Warning over store credit cards
Mon, 18 Dec 2006
Recommended links
Find the best credit card ratesCompare 0% credit card deals
Compare balance transfer cards
Credit card search tool
Get tips on choosing and using credit cards
Festive store credit card warning
Credit card cash warning
news content
Search
