Unsecured loans a cheaper alternative to store cards at Christmas
One of the UK’s leading product review websites has recently advised Christmas shoppers to avoid the usage of store cards over the festive season.
Traditionally, store cards are one of the most popular forms of credit attainment during the holiday season, as they offer shoppers convenience, and also provide certain loyalty related benefits. However, it has also been revealed that store cards can lead many Brits into financial difficulties, if they are not careful.
Accordingly, more than 15 million of us owe a staggering 17 billion pounds through this specific credit medium, and they are identified as being one of the primary causes for consumers to become uncomfortably indebted. Store cards can present an extremely expensive way to borrow, and on average, will cost the borrower in excess of 5 times more than that of a competitively priced unsecured loan.
One expert suggested that store cards are often “hard sold” to consumers during special events, which are held by the retailers. The unique benefits of said cards often blindside shoppers to the fact that other forms of credit, such as unsecured loans, are considerably cheaper.
There are certain occasions in which these types of cards can be beneficial, although, it is important for users to clear their balances as soon as possible, in order to avoid being stung by the above average rates of interest, which are commonly associated to their use.
