Decidedly un-savvy Britons are paying up to 333 per cent more interest on store cards than they could on equivalent credit card borrowing, new figures have revealed.
Financial advisors say that UK borrowers could save hundreds of pounds if they switched their balances to a best rate credit card offer.
To compare credit cards with store cards, borrowers with a £400 balance who are only paying off the minimum amount every month could save £263 in interest and clear their debt three years earlier by switching to a best rate card.
“Many consumers are concerned about how they are going to pay off their January spending sprees, especially those paid for on high-rate store cards,” said financial advisor Nick White
“A way to ease some of the burden would be to shift their store card debt to a more competitive credit card.
“Although the Competition Commission has suggested store cards carry a warning if their APR is over 25 per cent, few providers have done anything to address the staggering rates they charge.”
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