Debt management solution - Store Cards

If you are actively trying to find a solution to your debt, then you need some management strategies on how to handle your store cards.

High interest

It's all very tempting when you go into a store and someone on the check-out asks if you'd like a 10% discount on all your purchases. Bargain! Just think how much you could save. But if you are looking for a debt management solution, store cards are a false economy. Store cards can charge interest rates of up to 30% and this is where they can leave a nasty sting in their tail.

The problem begins when you shop on your store card but don't pay back the full balance within the interest free period.

Change your mindset

It's all too easy to have a bad day at work and think; I'll buy something to cheer myself up. Or I've not treated myself in ages; I'll get that new top. Retail therapy is rife. And in our society of credit and store cards, the buy now pay later mentality is becoming embedded into our retail culture.

If you are trying to find a debt management solution, then buying that top will only make your debt worse. Before you know it, things can spiral out of control.

Get disciplined

If you are disciplined and pay off your store card within the interest-free period, then they aren't a problem for you. But interest on unpaid debt can be hefty and management of that debt can leave you floundering for a solution that seem impossible to find.

Once you've addressed the 'I deserve to treat myself' approach and asked yourself if you can realistically afford to treat yourself, then you can start to take control of your impulse buying. Remember, the momentary pleasure of a new item of clothing or gadget will pale next to the stress and anxiety of increasing debt.

Debt management solution

If you have store card debts:

1. Write down each store, the amount you owe the store and the APR interest rate you are being charged. Putting things down in black and white will help you confront the reality of your situation.
2. Change your shopping behaviour and remember financial security can give you more satisfaction then a new product that you probably didn't need in the first place.
3. Budget your income and prioritise paying off your debts. The store card with the higher interest rate should be the first debt you plan to pay off. If you are concerned you can't contain your shopping impulses, then throw the store cards away!

Sticking to a debt management solution requires discipline. If you want to take control of your finances, it's worth it. Always consult an independent financial adviser to work out the best way forward for you.

For debt management solutions visit MRA Business Solutions at www.mradebthelp.co.uk, or call 0800 612 92 23.

For independent financial advice, visit our sister company Mike Robertson Associates at www.mraltd.com. You can email an independent financial adviser for professional help, or call 0870 803 1995.

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