The answer is definitely no and there are several reasons why it is so – high APRs, dormancy fees and dangers of accumulating a lot of debt when paying only a minimum each month. A store card, taken out around Christmas and then forgotten, is like a ticking bomb, sure to explode and ruin your finances.

Around Christmas store cards are being more aggressively pushed upon customers. The offer of a 10% discount on your shopping seems appealing – but remember that you might end up paying more for running a store credit card than the cost of your shopping.

One obvious drawback is the APR on store cards, which is somewhere in the range from 19,90%  (Santander store cards for Topshop, Topman, Laura Ashley, Debenhams) to the incredible 29,90% (Argos, Burton, Dorothy Perkins, Edge Card, Homebase, Wallis, Warehouse Card and some other – from different providers).

Store cards are absolutely not suitable if you are only making the minimum monthly repayment – interest will accumulate incredibly quickly, making you pay much more in interest than the initial 10% or 20% discount.

Store cards used to be a good deal for very disciplined shoppers, who could take it out, bag a purchase with a discount, clear the whole debt at once and be happy ever after. It is not possible any more. Santander, for example, has now introduced a dormancy fee which you pay if you don’t use the store card from this provider for three months.

If you are already in the trap of a store card debt and are struggling to pay – move everything to a 0% balance transfer card. Even with a transfer fee (usually around 2,9%) it will cost you less than keeping a store card and accumulating further high-interest debt on it!