Do you use store cards?
Overusing store cards is among the most unapparent, yet crucial features of the UK shopper’s debt problems. Unapparent because the schemes are such that, in light of various offers and incentives as passed on to the store card holder’s and the various terms and conditions (added with an asterisk sign), the shopper tends to believe that he or she is actually gaining after making purchasing on the popular, branded store cards.
Crucial because, the stated perceptible benefits do not actually exist in the form as presented by the store brands, thus resulting in store card debt and therefore overall debt problems.
Just like bad credit payday loans – see here. The perceived benefit of store cards is in fact a fallacy, based on the presumption that those that utilise this service will have issues repaying the borrowed amount.
This in fact is the logical reasoning behind failed attempts to deal with debt problems despite referring to the best credit schemes as offered by UK credit agencies and reputed setups.
Store card debt is a problem, most store cardholder’s do not even realize and therefore completely ignore. This ignorance propels continued behaviour and eventually escalates the overall debt problems faced by UK shoppers.
To counter the same and deal with the issue, this article sheds light on a few relevant aspects on the notion of arrears store card debt.
Repercussions of store card usage
Immediate incentives fill in for long term benefits – Debt problems are intensified with store cards.
The popular and supposed beneficial store cards are usually accompanied with catchy advertisements and taglines for promotion, which makes them look like an interesting instrument.
However, more than often these tag lines and promotional schemes are valid only for a restricted duration, say six months and thereafter the scheme elapses, which is often unnoticed. This implied manipulation leads to arrears store card debt and therefore sacrifice of long-term debt planning in the name of immediate benefits.
Another not so very detailed clause is the terms, while referring to store cards, relates to the cost in an eventuality of late payments. At the outset, store cards might promote better shopping terms, eventually however, in case there are payment delays or any over limit shopping possibilities, the interest rates multiply drastically to end up in arrears store card debt related debt problems.
Well are they useless then?
The answer to this question is no. Store credit cards can be optimally utilized without leading to any arrears store card debt and thus debt problems. They serve the immediate needs, in absence of ready cash. The idea however is about carefully understanding the promotional deal and closely monitoring the purchase process to ensure complete benefits from the same. Store card bills for instance ought to be immediately paid, if the idea is to avoid escalated costs. Easier said than done, there is bound to be a default here, either on account of finance scarcity or miss-management. Lousy approach in this aspect could very easily pave the path to arrears store card debt.
It can thus be argued that well controlled shopping plans with store cards are fine, but as soon as the extravaganza begins, arrears store card debt is quite a possibility.