Friday, June 2, 2006
Category:
Secured Loans
British borrowers have been warned that supermarket credit card deals can prove far more costly than they may first appear, with secured loans possibly a better option for many.
A study conducted by Moneynet has found that the loyalty benefits offered by some supermarket credit cards can be minimal when compared to the high interest rates often charged.
"Supermarket card holders who pile up debt on these cards while thinking they are getting a good deal from loyalty schemes such as bonus points or shopping vouchers are shooting themselves in the foot," remarked Richard Brown, chief executive of Moneynet.
Consumers may wish to consider acquiring secured loans rather than amassing debts on supermarket credit cards, with interest rates reaching as high as 28.8 per cent.
With secured loans often offering a far more beneficial deal, consumers are urged to think twice before signing up to a supermarket credit card scheme.
