Martin Lewis urges people with debit cards to switch to credit cards

dailyrecord.co.uk:

Martin Lewis has urged the public to stop using debit cards and switch to credit - as it's stronger.The BBC Sounds podcast host reacted to a caller's query on a recent episode of his podcast, which drops weekly on BBC Sounds.The Money Saving Expert shared three rules people should abide by that can make a credit card "more powerful" than debit, reports Birmingham Live.Sharing his "catchphrase", Martin emphasised that credit cards are ideal to use if you "pay it off in FULL every month".The MSE founder said: "A credit card has two purposes.

Its first purpose is a transactional card, it's a method of transacting and paying for things. Its second purpose is a debt card.

If you can neuter its ability to charge you interest, and effectively neuter its debt ability, you can turn it into a transactional card."He added that credit cards are "more powerful" than debit cards and said they typically come with lower interest rates compared to overdrafts on debit cards.

He also said the average high street bank overdraft rate is around 40 per cent, but general credit card interest rates are usually about 20 per cent.And he said: "A credit card is often cheaper debt than a debit card".