British consumers are being warned that they could be paying triple the amount of interest on a store card than they would be on a standard credit card.
This is after new figures from online comparison site uSwitch.com show that switching store card debt to a card that has an interest-free introductory offer can help cardholders save hundreds of pounds.
Interest rates charged on store cards are often double that which is charged on other market-leading cards and so consumers wanting to pay off the monthly minimum on a £400 balance can save £263 in interest and therefore pay off their debt three years quicker.
Nick White, head of personal finance at uSwitch.com, advised Britons to take this action if they wanted to pay off their January spending sprees.
"With APRs on many store cards exceeding six times the Bank of England base rate, consumers can make significant savings by carrying a store card balance to a low-rate credit card, enabling them to pay off their debt many years earlier."
For those who are adamant that they want to keep their store card, Mr White urged them to pay off their debt in full each month, preferably by direct debit. This would help ensure they pay "as little interest as possible".
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