Payday loan could help provide store card alternative
(16 November 2005)

A price comparison firm has suggested that customers avoid being tempted by high-interest store cards this Christmas – and a payday advance is one good alternative which won't see you struggling for months against a tide of hefty repayments.

The comments from moneysupermarket.com indicate that customers can lose out significantly when using a new store card to pay for that one major purchase if they don't pay off their incurred debts immediately.

It points out that each year £100 million more than necessary is spent on store card accounts – largely due to interest levels which in some cases hit 29.9 per cent APR and make customers suffer over a period of months.

Richard Mason, the director of credit cards at moneysupermarket, commented: "Store cards are attractive to consumers at point of sale as they usually offer a discount or introductory offer when you first take out the card.

"If you are making a big purchase, such as a kitchen or a substantial amount of clothes….it is very important to absolutely ensure you pay the full debt off within the first month of taking out the store card. With extortionately high interest rates on most store cards….it is best to steer clear of them."

A short term loan can bolster your resources when looking to fund important buys, and won't leave you feeling the sting for months to come.



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