| The number of people with one or more credit cards | | | | Before you sign up to one of these cards, take time |
| has grown at an unbelievable rate in recent years. | | | | to consider: |
| Like the mobile phone, the credit card has become a | | | | The discount may be a good deal and if there is a |
| way of life for many people, something they'd be | | | | purchase that you are seriously considering anyway |
| lost without. | | | | and you have the money to fund the purchase within |
| The offer of a store card for your favourite store | | | | the interest free period. |
| can be tempting and may offer opening discounts, | | | | What is the APR rate on this offer? How much will |
| invitations to special events (encouraging you to | | | | you be charged on the remaining balance? |
| spend money in the store, of course) and the familiar | | | | There may be an interest free period. How long does |
| "If you take out the card today, you'll get 10% off | | | | this last and when it ends, what rate will be charged? |
| your purchases. It won't take very long; we can fill | | | | Payment Protection Insurance will be offered. Check |
| the form in now. You may as well take advantage of | | | | how much this is going to cost and what benefits are |
| the offer and get your discount at least." You know | | | | offered. This is an option but could prove a blessing |
| how it goes and yes, there are some things you'd | | | | under some circumstances, such as illness or |
| like and the discount is worth thinking about. Before | | | | redundancy. Read the agreement carefully to find out |
| you know what's happening, you're giving details of | | | | more. |
| your current account etc., etc., etc. | | | | Remember that you'll need to budget carefully for |
| It's a familiar scenario. Over 40% of people who sign | | | | store card purchases - it's easy to overspend. |
| up in this way had no intention of doing so when | | | | You don't need to sign there and then. Take the |
| they entered the store, according to the Office of | | | | agreement away and check everything, including the |
| Fair Trading, and yet they may well make a major | | | | interest free period, APR, default and late payment |
| purchase. | | | | penalties. Ask questions until you're satisfied you fully |
| This isn't a problem if you have the money available | | | | understand everything. |
| to clear the balance within the interest free period, | | | | The Office of Fair Trading endorses the above |
| which can be from 35 to 55 days, in most cases. | | | | advice. They also advise that you compare the store |
| However, if you're unable to meet this time-limit you | | | | card with other payment methods. |
| need to be aware that the interest on the | | | | Don't be hassled into taking out a card you don't |
| outstanding balance can soon mount up. | | | | want by some pushy person who doesn't really care |
| The Consumer Credit card act sets down regulations | | | | whether or not you're getting what's right for you, |
| for any loan under £25,000. Whether or not a total | | | | as long as they get their commission for signing you |
| overhaul of these rules is necessary is under | | | | up! |
| consideration. | | | | Remember, as with credit cards, the statements |
| Data provider Moneyfacts provide some enlightening | | | | come in monthly. Keep track of your spending. Credit |
| information regarding the variation in store cards | | | | cards with low APR's are, in general, a better deal |
| interest rates. John Lewis, which includes Waitrose, | | | | than store cards, according to the majority of |
| has an APR of 13% and Marks & Spencer offer | | | | financial experts. |
| 18.9%, whereas Debenhams and Comets Timecard | | | | Take care and weigh up all the options. |
| are currently charging 28% and 29.9% respectively. | | | | |