City of York Trading Standards Consumer Advice service receive lots of inquiries about credit agreements each month.

The increasing number of financial services and products available give consumers a bewildering amount of options to consider. Before entering into any credit agreement Trading Standards advise caution to make sure that readers don't fall for one of the hidden cash traps.

Some of the more common phrases which may entice you are...

"If you open a store card account today you can get a ten per discount..."

This tempting offer only makes sense if you pay off the balance quickly and in full. However, be aware that many store cards have interest rates of over 30 per cent per year.

"Need a bit of extra cash this month?"

'Payment holidays' on loans look good but can lead to you having to pay a lot more interest long term.

"Minimum payment required"

If you only pay the minimum amount it can take many years to pay the balance and interest on a loan.

"Our extended warranty means you don't need to worry about repair bills..."

The cost of repairs is often less than the cost of the insurance premium. The work needed could be covered by your rights under sale of goods legislation. The law can protect customers for up to six years from the date of purchase. Many people are paying large sums of money for services which they are already entitled to.

Remember these five tips before signing on the dotted line

1) Don't just look at the monthly repayment amount on a credit agreement - work out how much you'll be paying back over the term of the loan.

2) Take time to read the written agreement and make sure you understand your obligations before you sign.

3) Be wary about special offers that are only available "now" and have to be signed immediately.

4) Shop around to make sure you get the best deal - compare the interest rates using the APRs (true percentage rates)

5) If you've got the cash to pay for items outright, don't be persuaded to sign a credit agreement unless it works out cheaper.

For further information about this or any other consumer matter, please call at 9 St Leonard's Place, York, telephone 01904 551562, fax on 01904 551590, or email trading.standards@

york.gov.uk Alternatively you can visit theTrading Standards website at www.york.gov.uk/business/tradingstandards

Updated: 11:32 Thursday, April 17, 2003