Tuesday 11th December 2007
Consumer group Which? has claimed that credit cards can offer a "much better option" for Christmas shoppers than store cards.
Shoppers may be tempted to take out a store card at this time of year, but unless they are "very disciplined" and pay off the balance each month, it is best to use a credit card instead, the organisation has explained.
Paul Davies, head of money research, said that "there is quite a lot of pressure" to take out store cards over the festive period, but stressed that "this is even more of a reason to decline and choose a better way of borrowing if you need to".
"You can pay 27, 28, 29 per cent APR [interest on store cards], whereas there are much more competitive credit cards on the market," he added.
Some 16 million Britons owe a combined total of almost £2.2 billion on store cards, with average interest charged on such cards being at 26 per cent, according to a recent study by uSwitch.
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Credit cards
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