Martin Lewis has told customers to remember that a "debit card is a debt card" as he issued a warning.
The founder of MoneySavingExpert shared advice for anyone in an overdraft on his ITV show. An overdraft allows you to borrow money through your current account by taking out more money than you have in the account.
This is referred to as being overdrawn. However, Martin warned against people using this method as a way of borrowing money.
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According to YorkshireLive, Martin explained that the average bank loan is under 8% APR (the cost of borrowing rate); and the average credit card rate is 19% APR. Martin said: "'Credit cards are horrible. Debit cards are great'. Not true.
"If you're overdrawn, your debit card is a debt card, and most consumer overdrafts are now 40%, double a high street credit card. Which means debit cards are now danger cards if you're overdrawn.
"Now the first thing if you're overdrawn is to check your eligibility for a -% overdraft and to what amount. People also ask me, can I shift my overdraft onto a 0% card? The answer is yes, but 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.
"With your overdraft, treat it like every other debt. Try to shift your direct debits to just before payday, so the longer you're overdrawn, the bigger your interest charges. So if you can move it to just before payday, you won't be in debt for as long and it should reduce the interest."
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