Store Card Debt Advice

If you are struggling to repay store cards in the UK you have come to the right place.

There are many debt solutions where you could look to consolidate your debts into one monthly repayment plan.

Don’t worry if you have bad credit, as no credit scores are needed.

Many UK citizens are struggling to pay catalogue debts, credit card debts, personal loans, and unsecured loans they have borrowed.

In our Store Card free Debt Advice guide, you will learn everything you need to know about unsecured debts and even whether there’s a chance for store card debts to be written off without going bankrupt with a debt relief order.

What is a store card?

A store card is a type of credit card that will be used for only a high street chain or group.

They are a type of agreement in finance that will allow you to buy goods in certain shops and pay later.

Similar to a credit card, you will also be charged interest if you do not repay the amount in full.

This type of card, however, normally has a higher interest rate than a usual credit card which can consequently leave you with financial pressures and a store benefit card needing to be paid off.

Find out today, how you can write off your debt.

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Features of store cards

Store cards usually come with specific features that draw you into signing up. Some of the features that can be included are money off specific products, vouchers, or access to events and holidays.

When hearing about the perks included in this card, it is difficult to refuse the offer, but when you know the ins and out of the card it is much easier to say no.

Usually, a store card will have an extremely high-interest rate (20-30%) that is larger than a lot of credit cards.

A high-interest rate will mean that when you don’t pay off your outstanding balance straight away, you will end up paying out a lot more than you truly wish to.

You can receive plenty of benefits with store cards, however, you should take careful consideration when signing up as they are really designed to ensure loyalty, rather than giving customers perks.

Store card advantages and disadvantages

It is important to note that store cards can have very many perks, yet they also have plenty of disadvantages.

Here is a short summary of some pros and cons:

Pro’s

Discounts/ money off
Freebies/ introductory offers
Partner with your favourite store- when you regularly go to a shop, you can see this as a benefit.
Securing good deals when paying the card off completely.

Con’s

High-interest rates
Specified locations only
Sales assistants sell these cards (not financial experts or debt adviser) If you have questions, they are not trained to answer in enough depth.

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Store card minimum payments

There are store card minimum payments required to pay back each month.

The minimum payment is usually more than the interest you will be charged each month.

This shows that store cards can lead to debt as many people might only pay the minimum amount every month (or not spend at all). This would cause debt as you will be paying interest as well as the minimum payment, this would take a long while to repay if you are not spending over the smallest payment.

Store cards and persistent debt

Persistent debts are debts that mean you have paid more on interest, fees, and charges than you have spent repaying your store cards over 18 months.

There are specific time scales that the Financial Conduct Authority (FCA) will have to contact you about if you have a persistent debt. These time scales are 18 months, 27 months, and 36 months.

After 18 months of persistent debt

If you have been contacted by the FCA about having paid more interest than your store card balance, you should take action in repaying your card to make the debt disappear.

The company you have bought the store card from may also attempt to contact you in encouragement.

After 27 months of persistent debt

After 27 months of persistent debt, you will be contacted again by the provider of your store card.

If you are still only making the minimum payment for the repayment plan, you will be encouraged to take action.

After 36 months of persistent debt

When you have reached 36 months of persistent debt, you will be offered a way to pay it off by your provider.

You could be offered an affordable payment plan with minimum repayments across three to four years.

You can also be offered a way to clear your debt completely through a balance transfer fee with a balance transfer card, personal loan, or bankruptcy.

When you have reached 36 months of debt, your account will most likely be suspended- affecting your credit file.

Store card arrears

Your account can go into arrears when you stop paying your minimum payments for the store card. When you don’t pay the minimum amount, each month a charge of £12 will be added (making it cost even more to pay off your card).

Continuing to avoid the payments towards your card can eventually result in further action with the provider, where legal action can be brought in.

Is debt consolidation worth it for store cards?

When questioning if debt consolidation is worth it for store cards, you should ensure that your total payment for your cards are smaller than what it would be without a consolidation loan.

When struggling to repay your credit and store cards, debt consolidation can help to close the accounts and keep you on a straight path to getting out of debt.

Debt consolidation can help you to track your payments, regain financial control, and give you a disposable income.

If you have passed the introductory period, you will be charged the APR rate (usually around 30%). When holding a few varieties of cards, you will be paying a large sum of money each money, therefore, a debt consolidation loan can be beneficial to give you extra time and financial freedom.

Store card debt help

Do you need help to pay off your store card debt? We can help you!

Contact us today to get personalised debt advice with completely tailored solutions to help you land right back on your feet.

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Store Card for Bad Credit UK

From our research, the most popular store card for people with a bad credit file are:

Should I worry about non-priority debts?

Despite these debts being non-priority, you should still be making sure you are paying each month and not falling behind.

When you fall behind on your non-priority debts as well as priority debts, such as household bills, you can find yourself in an endless loop where many people struggle to get out of without drastic measures being put in place.

Final Thoughts

If you find you are in a store card debt now, you will be able to get out of it with the help of this guide.

Even though store cards can seem like a brilliant idea to many, with amazing deals when joining- you should always look into every aspect before signing up, to make sure you do not find yourself in a loop of persistent debt.

Struggling With Other Debts

Here are some other debt guides if you are struggling with different types of debts: