Tackling your store card
The high cost single store temptation
Written by the Debt Freedom team 2 min read
"Have nothing in your house that you do not know to be useful, or believe to be beautiful." William Morris
You may having been tempted by a store card, perhaps with a one time discount to open. 10% off the purchase you were going to make anyway!
However, since then you have added to it, perhaps with some things you have never used or worn. It's not uncommon - take a look in your wardrobe.
Getting out of scorecard debt is again about a change of mindset and habits. You first need to stop using it. The interest rates are often very high and if you have revolving debt like 1.9 million other people in the UK, you are paying again and again for the same purchases. In addition, it can be too convenient. Impulse purchases can cost you dearly.
Here are some tips to help you pay off a store card:
- Stop using it
- Remove it from your phones wallet
- Hide the card at the bottom of a draw
- If you can't afford to pay it in full, overpay on the balance
- Set up a fixed amount to repay each month not the minimum
- Make regular overpayments to the card on top of your overpayments
- Save up and pay cash for things you really want
You should stock take the things you purchased on the card:
- Do you still have them?
- Have you used them?
- Could you sell them to help pay off what you still owe?
Try to work out how much the items cost you and how much interest you have now paid. It can be a sobering exercise.
Paying too much with interest on top
A little like catalogue debt, you may in fact be paying too much in the first place for things and then paying interest on top. In the long run, you may have been better off not having the stuff at all.
Spending addictions
Overspending can also be an addiction, trying to make yourself feel better by spending. It is not the answer, deal with what is making you unhappy - only buy things that make you truly happy.