Martin Lewis warning to anyone with a UK debit card !
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Martin Lewis has issued a warning to anyone using a debit card in the UK.
“Debit cards are now risk cards,” warned the money-saving expert.
He cautioned people to think twice before getting a debit card, and to compare a debit card to a “debt card” in some circumstances.
Speaking on ITV’s The Martin Lewis Money Show Live, Martin said: “Credit cards are horrible. Debit cards are terrific. Not true.
“If you’re overdrawn, your debit card is a debit card, and most consumer overdrafts are now 40%, double that of a high street credit card. Which means debit cards are now dangerous cards if you’re overdrawn.
“Now the first thing if you are overdrawn is to check your eligibility for an overdraft at -% and to any amount.
People also ask me; can I convert my overdraft to a 0% card? The answer is yes, but only a few specialized cards, it’s called a money transfer.
“With a money transfer card, you apply for a new card, you pay the money into your bank account so you can get rid of the overdraft, now you owe the card. It’s best for large overdrafts, you need a balance history.
“With an overdraft, treat it like any other debt. Try to shift the direct debit to just before payday, so the longer the overdraft, the higher the interest charges.
“So if you can move it to just before payday, you won’t be in debt for long and should reduce the interest.”