If your store card accounts are overdue or entering ‘persistent debt,’ we can assist you in repaying them and restoring your financial stability. Through a debt consolidation loan, you have the opportunity to settle your creditors, resulting in a single affordable monthly payment.
Interested in learning more? Keep reading!
A store card functions as a specific type of credit card usable only at designated stores. Similar to credit cards, you utilise them for purchasing goods, with repayments scheduled for a later date. However, a common issue is that many store cards carry high interest rates.
What begins as a modest purchase can quickly escalate into a situation with significant consequences. Amidst mounting financial pressures and escalating interest, settling a store card balance can sometimes seem like an insurmountable challenge.
Focus on only one monthly payment.
No problem. We consider all credit scores – even bad ones!
We are experts in debt solutions.
No hidden upfront fees to worry about.
Real rates tailored just for you.
Focus on only one monthly payment.
No problem. We consider all credit scores – even bad ones!
We are experts in debt solutions.
No hidden upfront fees to worry about.
Real rates tailored just for you.
Similar to many financial queries, the answer to this question hinges on your specific circumstances. However, if you find it challenging to meet the repayments and you have accumulated substantial store card debt, it’s likely that you have too many.
An alternative method to assess if you possess an excessive number of store cards is to examine your credit utilisation ratio. This metric reflects the amount of available credit compared to how much credit you are utilising. Typically, it is advisable to maintain this ratio at approximately 30%.
For example:
Is debt consolidation a worthwhile option for store cards? To assess its worth, you should ensure that your total payment is less than what it would be without a consolidation loan.
For instance, if you possess three store cards with balances of £500, £200, and £300, each at Representative 29.9% APR, over two years, you would repay nearly £1,300 to clear the original debt, assuming no additional spending.
On the other hand, if you opt for a £1,000 debt consolidation loan at Representative 12.9% APR, you would repay approximately £1,130 over the same period. In this scenario, you would save £170 in interest over two years.
This calculation doesn’t account for other debts you may have. By consolidating all these debts into one loan, debt consolidation might indeed prove to be worthwhile.
For personalised advice regarding your specific circumstances, please consult with one of our team members.
If you’re struggling to meet the payments on your store cards, debt consolidation could help by closing these accounts and allowing you to focus on a single monthly loan repayment.
If you’re considering a UK debt consolidation loan, it’s advisable to close your existing store cards once you’ve paid off the balances. Keeping these cards open may encourage ongoing spending, potentially leading to further debt.
To determine if you qualify for a debt consolidation loan, reach out today, and we’ll assist you in finding the best solution for your needs.
Our online application involves a soft search, preserving your credit rating, and we consider all credit histories. Keep in mind that the lender will conduct a hard credit check, which will be visible on your credit file.
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You can visit the Money Helper website to find out more about managing your money and to get free advice, they are an independent service set up to help people manage their money
Your details might be used for a soft credit check, which you can see but lenders cannot. This will not impact your credit score. The lender will perform a credit check which will appear on your credit file.
DebtConsolidation.co.uk is a registered trading name of Dissolve Debt Limited, which is authorised and regulated by the Financial Conduct Authority and is entered on the financial services register under reference number: 662423. Dissolve Debt Limited is registered in England and Wales (Company Number 05278758), registered office; Paul House Stockport Road, Timperley, Altrincham, Cheshire, England, WA15 7UQ. Registered with the Information Commissioners Office, (Registration Number Z896984X).
Disclaimer
The Financial Ombudsman Service (FOS) is an agency for arbitrating on unresolved complaints between regulated firms and their clients. Full details on the FOS can be found on its website at www.financial-ombudsman.org.uk.
“Dissolve Debt Limited” act as a broker processing the information that you provide to us and pass this on to our Limited group of third party lenders and brokers.
We do not charge a borrowers fee for the use of our brokerage services, however we do receive commission from lenders (or other brokers) when borrowers sign into a credit agreement following an introduction through the Debt Consolidation website.
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As operator of this website, Debt Consolidation is not an agent or representative of consumers or any lenders and therefore does not endorse the services offered by specific lenders.
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Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
If you are thinking of consolidating existing borrowing, you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.
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