2 weeks Ago By [email protected] (Cait Findlay, Christian Abbott)
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More info × Group 28 Thank you for subscribing! We have more newsletters Show Me No thanks, close See our Privacy Notice A warning has been issued to all debit card users. Finance expert have raised a red flag for those who use their debit cards for daily transactions, suggesting there might be a better way to manage finances. Steve Saxton, a mortgage lender by profession, took to TikTok to warn: "If there's anything that ever happens – any kind of fraud or someone gets hold of your information – your current account is at risk.
" He clarified: "To be clear – if you use a credit card, that is not your money. I'm saying that in a positive light – because it's not your money, it's not tied directly to your bank account, it's the credit card company's money. "I've heard people taking weeks to get the money back because the banks or the credit union doesn't believe the charge.
They will remove it from your statement." He continued: "It's never going to come from your account, so trust me – I've been in lending for 25 years – put everything on your credit card." He further advised, according to Birmingham Live : "Pay it off immediately, or every Friday, or the next day or night – I don't care.
However, if you can't afford to pay for something in cash or pulled from your debit account, don't buy it – don't put it on a credit card. "All of these things come with using a credit card, but here's the big thing – it's not tied to your current account and that's the beauty of it," he added. Your credit card company will send you a monthly bill, detailing all your purchases for that period.
The team at Money Saving Expert, led by BBC and ITV personality Martin Lewis, advise: "There will be a total balance – so the amount required to pay it off in full – and a minimum repayment listed, along with a due date for payment. "Most cards waive interest on spending (though not cash withdrawals, which usually attract interest from day one) if you pay the money back in full and on time by this due date, so this is the cheapest option if you're able to." Mr Lewis warns: "I've got a warning.
Many people think when it comes to debt, debit cards good, credit cards bad. But when it comes to debt, if you're overdrawn, it's credit cards bad, debit cards worse. "Most overdrafts with virtually all high street banks and many others are at 40 percent AER (like an APR, similar-ish).
Credit cards, 25 percent. Overdrafts are the most expensive form of high street debt. Treat it like a debt – you want to get out of it.
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