Store finance is a common way to pay for items and pay back in instalments.
This type of credit is often referred to as ‘buy now pay later’ credit, which has grown in popularity in recent years due to providers such as Klarna and Clearpay.
Interest-free credit is offered by many major high street stores and online retailers and is often available interest free (0% APR) for a fixed time. This means you won’t pay any interest if you pay the loan back in full before this period runs out.
Store finance is regulated by the Consumer Credit Act and most agreements are a type of unsecured personal loan. This means you’re the legal owner of the goods straight away, and the retailer can’t take the goods back if you miss payments.
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Before taking out a ‘buy now pay later’ loan it’s important to work out whether you can afford to repay the debt during the interest-free period. Check the terms and conditions of the loan for any early repayment charges and make sure you can afford any interest payments if you can’t pay the loan back during the interest free period.
Store cards and persistent debt
If you’ve been making minimum payments on your store card for a while, you may have recently received a letter telling you that your account is in 'persistent debt'. They may have asked you to increase your monthly payment. Find out more about persistent debt
If you need help dealing with letters about persistent debt, we can help
Please call our dedicated team of advisors on 0300 303 2517, Monday – Friday 9am - 5pm.