Martin Lewis has warned against underestimating what he describes as ‘the most dangerous form of mainstream debt’ in the UK.
While many people prioritise credit card debt, the money saving expert points to current account overdrafts – which typically charge interest as high as 40% – as being considerably more costly, and a trap many can fall into when trying to pay off their credit cards.
Speaking on The Martin Lewis Podcast, Lewis told viewers: “If you’re overdrawn, your debit card is a debt card too, and it is more expensive than a credit card,” adding: “think of your overdraft like a debt – plan to pay it off.”
