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Will Store Cards Bankrupt Me?

I enjoy shopping just as much as the next person, but the amount of money I spend is ridiculous! No matter how many pairs of shoes I own, dresses I buy or bags I have, I always want more. And when I say want I mean need. Although there are sales, discounts and bargains to be found out there, the price of fashion is extremely high.

Many stores and retailers will offer customers store cards, promising a 10% discount on your first purchase and great deals on interest. Although these sound like a great way to continue spending without breaking the bank, they are dangerous. Whilst it may seem like a no brainer paying in instalments for items, the truth is that this spending never stops. You may be chilling in your brand new dress and paying £10 a month for it but in reality you are paying more than it is worth. The interest that is added on over the months means that a £50 dress will cost around £80 once it is fully paid for.

For this reason, many people find themselves getting further and further into debt; a scary prospect for anybody. Once the letters and phone calls begin, the panicking starts too. How are you going to pay the money back? Whilst big companies are able to make deals with their creditors like a company voluntary arrangement, individuals such as you and I have it much more difficult. However, deals can be made with creditors.

The chance of a creditor actually claiming you bankrupt is extremely small, although this doesn’t mean that you should refuse to act. It will cost a company up to 5 times more money to claim an individual bankrupt. Plus, if that particular individual also owes money to numerous creditors then it is highly unlikely that the original retailer will get the full amount back anyway. If the debt that you owe to a retailer is passed on to a debt company then it is highly advisable to contact that company immediately. More often than not these types of organisations are willing to wipe off any interest that you are charged and will agree to receive the original amount. The majority will also agree to paying by instalments.

Store cards, loans, credit cards, they all play their part in personal debt. However, tackling them head on and making contact with creditors will almost certainly benefit you.

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