Have you ever been in line at a department store and been made a very attractive credit card offer? Many stores offer a large discount, perhaps up to 40% off your purchase, if you sign up for that store’s credit card on the spot. The reason for this is simple; store credit cards make those stores a lot of money.
Store credit cards often have a lower credit limit and higher interest rate than standard credit cards. This can allow for many more people achieving approval for these cards as compared to standard credit cards. The higher interest rates ensure that store will make a maximum return on the credit they extended to their customers. For instance, the average interest rate on a standard credit card is about 14% while the store credit cards have an average interest rate in the 20s. This is clearly a bad deal. If you are struggling with debt from store credit cards, contact a qualified debt settlement attorney. Engaging a law firm to tackle your store credit debt can result in a large reduction of the principal balance owed on a store credit card.