Martin Lewis issues warning to anyone using debit card over credit card

Martin Lewis issues warning to anyone using debit card over credit card
-Credit:Reach Publishing Services Limited


Martin Lewis has issued a warning over using debit cards over credit cards. The BBC Sounds and ITV star has sounded the alarm over using debit cards rather than credit cards when it comes to the plastic in your wallets or purses.

“I’ve got a warning. Many people think when it comes to debt, debit cards good, credit cards bad," Mr Lewis said. “But when it comes to debt, if you’re overdrawn, it’s credit cards bad, debit cards worse. Most overdrafts with virtually all high street banks and many others are at 40% AER (like an APR, similar-ish).

“Credit cards, 25%. Overdrafts are the most expensive form of high street debt. Treat it like a debt - you want to get out of it.” Martin said: “You get £175 for switching to it at the moment, you’ve gotta be new to it, and that can pay off some of your overdraft, and you get a 0% overdraft of up to £250 usually, not every time but most people do.

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“But it doesn’t actually move your overdraft for you, so when you apply to switch, the normal process is your direct debits are moved over, your standing orders are moved over, that will happen. Normally it closes your old bank account but if you’ve still got an overdraft your old bank will say, hang on, do you want to pay this off, or we’ll keep it open because you owe us the money.

“So you’ll have to sort out paying that but you can go into overdraft on this one then pay off the old one.” Taking to Twitter, now X, Mr Lewis shared: "To the few who complain every time I give a money tip, show people how to clear debt, cut costs, get something cheaper, campaign for improvements... "it's a cop out, you should deal with the real problem, you need to change the structure of society instead."

" Even though it's literally my job, I of course apologise for focusing on practical fixes which i know will have an impact, and have collectively helped millions over the years. Gotta go now, I have a wind to **** in."