- Thursday, 25 February 2010Consumers have been warned about the dangers of store cards and the hidden debt problems that can occur.
Spokesperson for the Consumer Credit Counselling Service (CCCS) Tim Howard said many consumers fail to read the small print when they sign up for store cards, and do not check interest rates.
"Store cards are a very real form of debt and, when mismanaged, can get you into as much as, if not more trouble as credit from high street lenders," he said.
"Consumers need to be aware of what they are committing themselves too."
Mr Howard's comments follow the release of new research from insolvency trade body R3, which reveals that 66 per cent of insolvency practitioners have dealt with cases where people have signed up for store credit cards with little understanding.
Many people subsequently accumulate a large amount of debt on their cards, states R3, with nearly 80 per cent of insolvency practitioners believing that consumers view spending on store cards as "less real" than spending in cash.
Consumers should always read the small print and consider the interest rates, advised Mr Howard.
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