Avoid store cards over Xmas, says financial advisor

Customers should be wary of store cards which offer on-the-spot discounts over the festive period, one financial advisor has advised.

AWD Chase de Vere has highlighted the "notoriously high" interest rates that users of the cards can be faced with if they do not pay off any debts straight away.

"My advice is to avoid store cards unless you are savvy and know you’ll pay them off immediately or certainly before you’re hit with interest payments," said the firm’s savings manager Susan Hannums.

She went on to say that any benefits holders of a store card do receive can be effectively cancelled out by the amount deducted for interest.

"The interest rates on store cards are notoriously high so unless you pay them off straight away you could soon negate any special offer or discount you received by taking one out," Ms Hannums explained.

The average interest on paid per household on debts stands at £3,327, according to research from Credit Action.