Spending too much on a store credit card this Christmas could lead to financial difficulties, one expert has warned.
The credit cards offered by retailers often offer an "exuberant" rate of interest, which could prove to be an expensive error for shoppers who build up a large balance, stated Lisa Taylor, analyst at Moneyfacts.
On average, store credit cards offer interest rates of around 24.6 per cent, around eight per cent higher than other credit cards and four times higher than some personal loans, she noted.
However, Ms Taylor also claimed that many balance transfer cards allow a switch from store credit card, which could be a means of ensuring that a reasonable amount is repaid.
"By all means make the most of the discounts on offer, as these can be especially worth while on larger purchases, but don't let your initial saving go to waste by paying the sometimes exuberant rates of interest," concluded Ms Taylor.
Moneyextra recently noted that balance transfer cards are ideal for transferring post-Christmas debts, advising consumers with large balances to opt for plastic with capped fees.
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