*This is a paid post
Throughout my adult life I have come across all sorts of deals on store cards, offers that make you want to buy something right there and then, that make anything you dream of seem within reach. Store Cards can be great – with an interest free period at the start they allow you to buy that dream dress, piece of furniture or TV. Purchases you have thought long and hard about or impulse purchases when you see something you love but can’t necessarily afford right now.
I have had these kinds of cards in the past – buying a bed on a store card or getting a store card just before a big sale to have a splurge and pay it back later. But how much later do you pay it off? After our journey of getting into and out of debt I make sure that I pay off cards in full every month but what if you have taken out a store card and don’t have the money to repay the balance in full after that lovely interest free period has ended? If you don’t have a way of repaying you could end up with interest of usually more than 30% APR – that’s an extra £20-£30 a year on every £100 you spend!
A great option in this situation is to transfer the balance across to a 0% interest balance transfer credit card. Most have an interest free period of at least a year to help you pay off the balance over a period of time without incurring any interest – usually with just a small balance transfer free.
Although we have been in debt in the past I don’t see anything wrong with taking out credit and making it work for you with manageable payments. Balance transfers are a great way of affording a holiday and paying it off through the year or spreading the cost of large purchases. They’re also great if you’re just finding it hard to keep up repayments on debts or just want everything in one place.
So, make use of store cards if you want to but make sure you pay off the debt – or transfer it to a 0% card – after the interest free period to avoid huge interest charges – and don’t miss payments on any debt or it could seriously effect your credit rating!