Martin Lewis: money saving expert says debit cards are a ‘danger’ as he issues warning about overdrafts
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He has been fighting tirelessly to help people save money during the cost of living crisis.
“Credit cards are bad, debit cards are good…. not true,” Martin warned.
He made the shocking revelation that if you are overdrawn then your “debit card is now a debt card.” This comes as a shock to most people who believe that it is safer to have a debit card than a credit card.
Martin explained that most debit cards have an overdraft with a 40% interest rate, so that would make your debit card a danger card if you are overdrawn.
The founder of the Money Supermarket website explained how to avoid getting into debt, saying: “Now the first thing if you’re overdrawn is to check your eligibility for a 0% overdraft and to what amount.
“People also ask me, can I shift my overdraft onto a 0% card? The answer is yes, but with only a few specialist cards, it’s called a money transfer.
“With a money transfer card, you apply for a new card and it pays the money into the bank account for you so you can get rid of your overdraft, you now owe the card. It’s best for large overdrafts, you need a decent credit history.”
The most important thing Martin wants you to remember is: “Treat it like every other debt. What do I mean by that? I want you to repay it.”
- Check Eligibility for 0% overdraft
- Special ‘Money Transfer’ 0% cards can be used too
- Treat it like any other debt
Watch The Martin Lewis Money Show Live on ITV Tuesday at 8pm