Store and Credit Card Debts in Northern Ireland

Credit cards are the most common type of personal debt, with store cards not far behind. These cards can lead to spiralling financial problems with the tendency to spend on consumer goods – such as groceries, clothes and holidays – with a buy now, pay later mindset. However, by the time ‘later’ comes around, interest and charges can leave your balance much bigger than initially anticipated.

What is the difference between credit card and store card debt?

Although these cards look similar and allow you to buy now and pay later, there are significant differences between credit cards and store cards. You can use a credit card practically anywhere; payment networks, such as Visa and MasterCard, allow for global spending but with store cards you can only use them within that store. For example, a Next store card can be used at any Next across the UK, but only Next will accept it.

It can be tempting to take out a store card (and crucially, a binding consumer credit agreement) when making a purchase in the store and the customer service adviser offers you the card which, when taken out there and then, will allow for discounts on your purchases. This is how a lot of store card accounts are opened.

However, caution should be exercised. Store cards typically come with an interest rate even greater than that which is levied on credit cards.

Struggling with store card or credit card debts?

Taking out a store card or credit card can seem like a harmless and useful tool at first but it’s easy to fall foul of the fees and interest that are applied should you fail to repay the balance in full each month.

We help individuals across Northern Ireland that are suffering with financial problems stemming from credit and store cards through a number of formal and informal insolvency processes which can help protect you from creditors as well as get you back on the road to financial freedom.

Speak to one of our friendly, experienced debt advisers today for a free initial consultation to help you better understand your options.