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Whilst we all enjoy a good shopping session, our finances may think differently. The pair of shoes that you NEED are £40 over your budget. What to do? Do you wait until next month when you can afford them? Or do you opt to take out a store card and take them home today? Store cards are lethal when it comes to personal debt. Although many promise a 10-15% discount off your first purchase and claim to have low interest charges, the truth is that these cards play havoc with a persons finances. It may sound too good to be true, but it is important to remember that those new pair of shoes are going to cost you more than they are priced. If you pay £10 a month on a £60 pair of shoes then you are likely to pay over £100 for them over a 10 month period. And dont forget, those shoes need a lovely pair of jeans to go with them! Once the letters and the phone calls begin, thats when you know youre in trouble. The majority of retailers will state that the debt will be shortly passed onto debt collectors who will continue to bombard you with threats and court orders. Although they are perfectly within their rights to do so, creditors are highly unlikely to claim a debtor bankrupt. Claiming yourself bankrupt would cost around £600, whilst commercial companies would have to fork out up to 3 times that amount to do so. In the majority of cases, filing someone as bankrupt does not mean that they are given everything they are owed. For example, if you already owe multiple companies money through borrowing then the likelihood of the original retailer getting the full amount back is slim, as all creditors will want their share. Although bankruptcy is an unlikely prospect, it definitely pays to approach these store cards with caution. Deals between creditors and debtors can often be made including a http://coopermatthews.com/company-voluntary-arrangement.html, individual voluntary arrangement and debt management plans.