Retailers put up store card rates

24/09/2008

Store card rates have been hiked - just as the Christmas shopping season gets under way.

New analysis from financial website Moneyfacts.co.uk show that three major UK retailers - Karen Millen, Oasis and Principles - have upped their repayment rates by as much as 4.3 per cent.

They are now set to charge an APR of 28.9 per cent on all purchases.
Michelle Slade, an analyst at Moneyfacts.co.uk, said: "As everyone feels the pinch, many customers may be tempted by the offer of a discount on their first purchases. However, this could end up costing customers hundreds in additional interest.

"By also cutting the minimum repayment required, some customers may think it a good opportunity to reduce their monthly outgoings, but in the long run they will end up paying much more in additional interest."

The economic downturn, which has seen GDP growth grind to a halt, is expected to impact on retailers severely.

Annual price rises of 4.7 per cent - the most for 16 years - are also discouraging many shoppers from spending big.

Tags; Debt Management and Banking, Credit Card Lifestyle,

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