Imagine that you’re at the checkout counter. You are ready to pay for your purchases when suddenly the friendly clerk offers you a 15% discount on all your purchases. That is, if you sign up for the store card. Your senses warn you against signing up, but you ignore it. After all, who can resist getting free a 15% discount? This is a trick that many avid shoppers had fallen prey to. Store credit is rarely a good thing. Despite the wide range of convenience and attractive offers, the store credit card comes with strings attached.

How Store Credit Debt Accumulates

Everyone takes advantage of using credit at one time or another. There are cases when spending becomes uncontrollable. Things that used to be unaffordable can now be bought using credit. Basically, a lot of people are using credit to buy what they otherwise cannot afford.

A lot of people are at ease with the idea of using credit to boost their purchasing power. This is the root of the problem. Using store cards should not be an issue if a person is disciplined enough to control his spending and pay off the all balances within the interest-free timeframe. For individuals who can’t pay the balance each month, the interest payment can accumulate and the debt trap can occur.

How to Get Out of Store Credit Debt

Store card charges will vary among retailers. The worst rates are those that hover at 30% while the reasonable ones are at 13% or under. It is always recommended that you check these rates carefully before signing up.

If you are caught in the store card debt trap, it is critical for you to get out of it as soon as possible. It is possible to spend 15 years paying off a debt of just $1,000 if a consumer chooses to make the minimum monthly payment only. The combination of high interest rates and the minimum requirement to pay only 4% or less of the balance creates an environment where a relatively small debt can hang around for years or even decades.

It is essential to know the amount of interest you are paying, or your payments can be wasted on the store card debt. A lot of advertising is spent on convincing consumers to sign up for these offers. Advertisers often highlight the advantages of paying the minimum per month but the truth is the interest payments make up the bulk of the repayment scheme. Usually, the interest payment can amount to the principal even without the consumer realizing it. The key to getting rid of store debt is pay off all existing debts that you can afford to pay and resist the temptation to use the store card again.