Martin Lewis issues warning over using debit cards instead of credit cards

"The money expert shared his advice on his BBC podcast, explaining why debit cards could actually sometimes have steeper charges than credit cards. He said: Many people tend to think a credit card's bad, debit card's good, but it just isn't that simple. If you are overdrawn, a debit card is a debt card too, and a typical high street overdraft is at 40 per cent annual interest compared to a high street credit card at 25 per cent annual interest, he added."

"Mr Lewis explained that because of these high interest rates, it could be cheaper to pay off credit card debt over debit card overdraft, but stressed it's better not to have debt at all. Credit cards also offer extra protections under Section 75 a consumer protection right under the UK's Consumer Credit Act 1974 that makes a credit card provider jointly liable with a supplier if something goes wrong with a purchase."

The Independent covers issues from reproductive rights to climate change and Big Tech and funds on-the-ground reporting through reader donations while avoiding paywalls. Donations enable sending journalists to investigate and interview both sides and support productions such as the documentary 'The A Word' about American women fighting for reproductive rights. Martin Lewis warns that debit cards can incur steeper charges when they trigger an overdraft. A typical high-street overdraft can carry around 40% annual interest, while a typical high-street credit card can be about 25% annual interest. Credit cards can sometimes be cheaper to clear than overdrafts and offer Section 75 protection for purchases between £100 and £30,000.

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