Shoppers out hunting for sales bargains have been warned not to get suckered into a store card deal that could wipe out any savings with a wincingly high APR.
The post-Christmas period is the time of year with the largest mark downs on many products – but it is also the time of year when many shops put the biggest push on their own-brand store cards.
These may have tempting introductory offers, but often include repayment terms which will make it difficult to clear the debt within the offer period.
Once the initial offer period is over, store cards fail to compare with the best rate deals available by a wide margin.
“The new year is a time when we all resolve to save money but it’s also the time when many stores ‘up the anti’ on getting shoppers to sign up to their store cards or interest free loans,” said Post Office head of credit cards Gary Fitton.
“On the face of it, the savings offered by some store cards look tempting but once the promotional periods have closed, it’s easy to be landed with hefty APRs – meaning you could still be paying for your new year ‘bargains’ well into next Christmas and beyond.”
Shoppers should compare loans and best rate offers before they sign up to any deal, say personal finance advisors.
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