Martin Lewis has issued a warning to people who use a debit card
Ben Test Hurst-BM and Ben Hurst
15:30, 14 Nov 2025Updated 15:31, 14 Nov 2025
Martin Lewis has explained how only using debit cards isn’t sometimes the right solution (Image: ITV)
Martin Lewis has issued a warning today to anyone with a debit card from banks such as NatWest, Barclays, Nationwide and Lloyds. During his BBC podcast, the money-saving guru emphasised how certain people routinely choose their debit bank card instead of a credit card.
He cautioned users could be stung by escalating interest rates on debit cards – potentially even higher than those levied on credit cards. He said: “Many people tend to think credit card’s bad, debit card’s good, but it just isn’t that simple. First of all, if you’re overdrawn, a debit card is a debt card too, and a typical high street overdraft is at 40% annual interest compared to a high street credit card at 25% annual interest. Overdrafts are more expensive debt than credit cards. If you had to owe on one, you’d be best not to owe on either. If you had to owe on one, you would be better to owe on the credit card.”
Mr Lewis also highlighted that credit card transactions benefit from additional safeguards. Section 75 is a consumer protection provision within the UK’s Consumer Credit Act 1974 that renders a credit card company jointly responsible alongside a retailer should anything go awry with a purchase.
The protection covers individual purchases valued between £100 and £30,000, shielding shoppers if items are defective, don’t turn up, or fail to match their description, even when just a deposit has been paid using a credit card. Mr Lewis said: “On the credit card, plus you have extra protection when spending on a credit card too.
“Section 75 rules state, if you’re buying something that costs over £100 up to £30,000 and you pay for any of it, even a penny of it on a credit card, the credit card company is liable for the entire amount and jointly liable with the retailer. So if something goes wrong, you can go back to it. On debit cards, you only get charged back.”, reports the Mirror.
“Add to that the fact that on a credit card, you can also get rewards on your spending, cash back of up to 5% for a few months and up to 1% on a regular basis. Then for many people, done sensibly as long as you’re paying your credit card off in full every month and you’ve chosen the right credit card, it’s often a better way to spend than a debit card.”
Those following the discussion weighed in, with Ryu observing: “With regard to chargeback and sec 75 protection – that needs looking into. There is no consistency between the banks and even within banks on how they interpret the same MasterCard/visa rules. Customers of Ripple Energy (in administration) are finding getting a refund is a lottery”. Madcat added: “Plus you can do a subsequent balance transfer to a different credit card company and make use of zero interest opportunities; some have quite long periods e with their introductory product. This is useful for large, one off purchases or a temporary cash flow problem eg Christmas.”
James stated: “Another advantage of some credit cards (eg Nationwide) is 0% commission on purchases in Europe.”
JB said: “With regard to chargeback and sec 75 protection – that needs looking into There is no consistency between the banks and even within banks on how they interpret the same MasterCard/visa rules. Customers of Ripple Energy (in administration) are finding getting a refund is a lottery.”
Mr Lewis had previously warned: “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% AER (like an APR, similar-ish).
“Credit cards, 25%. Overdrafts are the most expensive form of high street debt. Treat it like a debt – you want to get out of it.”