Watch out for the temptation of store cards: while a quarter of adults shop with credit on such cards or through catalogues, Londoners are most likely to have fallen behind with their repayments, according to findings from the Debt Advisory Centre (DAC).
Almost four in 10 store card shoppers in the capital are at least a month late on their store card debts, according to the DAC, which also reports that young people are most likely to get into trouble with this type of credit.
A third of store card shoppers aged between 25 and 34 are a month or more behind with their repayments.
“The level of arrears among young people in particular is shockingly high,” said Ian Williams of the DAC.
“A third of 25-34-year-old borrowers admit to being a month or more behind with their payments.
“Not only may this lead to them being hit with additional charges and borrowing costs, but their credit rating may also suffer.
“This could impact on their ability to get a mortgage, loan or other form of credit in the future.”
Williams added: “As with other forms of borrowing, it is important that people who fall behind with store card and catalogue repayments speak to their lenders as soon as possible and consider getting expert debt advice.”
The Government-backed National Debtline can offer advice and help for those who are struggling with repayments. Contact it at nationaldebtline.org or on 0808 808 4000.
