Soaring credit card debt fuelling rise in store card use
Soaring credit card debt fuelling rise in store card use
Monday 2nd June 2008
According to Rob Templeman, chief executive of Debenhams, the retailer has noted a significant rise in the use of store cards and a decline in credit card use in its shops.
Mr Templeton attributed this to the fact that credit cards are being used to pay for household expenses.
He told the Observer: "We are seeing a lot more cash purchase and the number of store card transactions is moving up.
"There is a definite trend away from credit cards, and my suspicion is customers are using them to pay their everyday bills."
Responding to the trend, Sean Gardner of MoneyExpert.com warned that store cards are one of the most expensive ways to borrow and urged customers to seek other debt management methods to cope with the strain on their finances.
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