Store Card Use Increasing As Mortgage Gets Paid On Switch

By Author: Maria Tillinghous
Total Articles: 33
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To avoid getting into too much debt, people are using cash and store cards more frequently. Department stores like M&S and Debenhams have noted an increase in cash and store card transactions. It's just a bit surprising that the use of credit cards are certainly going down in stores, and there is a strong belief that they are now being utilized for the purpose of settling household expenses like utility bills and rentals.

A GfK NOP poll revealed that consumer confidence slipped lower than it has been since the recession of 1990, largely due to dropping house prices and increasing household expenses. Recently more than two million Brits have seen the limits on their ability to borrow on their credit card curtailed.

Store credit cards charge some of the highest interest rates, so we can conclude that consumers are hurting financially when their usage of them increases. Everyone has their own ideas about borrowing, but whether you are a cautious cash-only spender or you don't mind resorting to using credit cards, you should still be wary of using a store credit card unless it is a last resort due to high cost ...
... of interest associated with them.

The interest rate for store cards can be as high as 31 percent, the average being 22 percent. This interest rate seems high when you consider the 17% rate on a credit card. A recent study discovered that roughly 4 million people pay rent or mortgage with a credit card. Paying on a loan or mortgage with a credit card is very expensive, but not as much as a payday loan. The UK is having problems with personal finance.

It seems disadvantageous and a little irresponsible but if you are in imminent danger of losing your house, this action is sensible. The first step is to use the help of Citizens Advice, it's important to not miss aid you are readily eligible for. In you must use your card in a pinch, don't worry, it is a reasonable measure until such time as you have recovered financially. It can't make things worse. Credit card debt in not secured by property, but if the rent or mortgage isn't paid, you'll find yourself with nowhere to live in only a few months.