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Hyde Park, Eastgate, Fairfield,
Covington:
+1-513-723-1600
Portsmouth:
+1-740-300-2022
Call For A No-Pressure, Free Consultation

Full Service Bankruptcy
And Debt-Relief Lawyers

The link between store brand credit cards and holiday debt

| Dec 11, 2019 | Bankruptcy

During the holiday season, consumers in Ohio and across the nation may come across a variety of financial offers as they attempt to check off their holiday lists. In many cases, stores may offer customers significant discounts for applying for and using a retail credit card. While the rewards involved may seem enticing, the price of such a decision could prove much higher than anticipated, as store brand credit cards continue to be a leading cause of holiday debt.

One of the most pressing concerns with retail credit cards could pertain to the higher than average interest rates involved. Studies indicate that store credit cards carry average rates of more than 20% interest. In addition, instead of offering interest free periods, studies indicate that similar cards typically only offer periods of deferred interest and those who fail to pay off the balance by the end of a promotion may be left with a substantial financial surprise.

Studies also indicate that store cards may come with limited benefits, as similar lines of credit can only be used at specific locations. Studies also suggest that the offers provided through store credit cards are also geared toward enticing consumers to spend more than initially planned. Experts also indicate that the rewards available through retail cards may still struggle to compare with those available through other lines of credit.

Many individuals have experienced the trials of debt after using store brand credit cards to fund their holiday shopping endeavors. Those who face extended periods of monetary strain under similar scenarios and wish to better understand their available options for relief could find it helpful to speak with an attorney for guidance in making informed choices. An attorney can work with a client in Ohio in developing a plan to pursue the necessary relief and provide him or her with guidance on how to prevent similar hardships in the future.

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