Martin Lewis issues new warning over hidden 'danger' of dipping into your bank account overdraft
dailyrecord.co.ukMartin Lewis issued a new warning to everyone with a bank account overdraft on the latest episode of his Money Show Live TV programme.
The financial guru focused on personal finance this week, a hot topic at the start of the new year as many households try to get back on track after the festive season.Martin explained to ITV viewers how they could instantly start to reduce the amount of money they owe on a credit card by moving their debt to a zero per cent interest rate card, allowing them to pay back what they’ve borrowed faster.
But he also busted one of the biggest myths about debit cards and explained why dipping into your overdraft could be more costly than paying off a credit card.The consumer champion said: “Credit cards are horrible, debit cards are great - not true.
If you’re overdrawn, your debit card is a debt card.”Martin explained how most consumer overdrafts are now 40 per cent - double a high street credit card rate, which means you could be paying twice as much interest for using your overdraft as you would for using a typical credit card.The founder of MoneySavingExpert.com warned: “Debit cards are danger cards if you’re overdrawn.
Read more on dailyrecord.co.uk