Martin Lewis issues warning to people who use debit cards over credit cards to make payments

Martin Lewis has shared a warning to anyone who prefers to make purchases on their debit card rather than using a credit card.

A financial journalist on a mission to make sure Brits are getting the most out of their money, Lewis has shared his advice on everything from the tax benefits of getting married to protecting yourself against phone theft and advice on claiming car finance compensation.

The financial guru has now turned his attention to the methods in which people spend their money, issuing a warning to anyone who declines to use a credit card during a recent episode of the BBC's The Martin Lewis Podcast.

When it comes to credit cards, most of us think of horror stories regarding people owing thousands in credit card debt.

Whereas using a debit card and spending the money in your current account seems like much more of a sensible idea.

However, it would appear this payment type doesn't necessarily deserve the bad reputation.

In fact, it can actually be very beneficial to make your purchases on a credit card.

Touching on the subject in the podcast episode, Lewis said: "Many people tend to think credit card's bad, debit card's good, but it just isn't that simple."

He went on to explain that when a person is overdrawn, their debit card is no different to a credit card and often has higher interest rates.

"A typical high street overdraft is at 40% annual interest compared to a high street credit card at 25% annual interest," he said.

"Overdrafts are more expensive debt than credit cards."

Lewis is quick to caution that the best financial situation is one where you don't owe money on either a debit or credit card; however, if you do find yourself in debt, it's better to be with a credit card.

"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," he added.

Why debit cards can cost you more than credit cards!

A snip from full “Wallet Workout: Gain (£100s) pounds” new episode of the Martin Lewis Podcast. Listen to it all on https://t.co/JuhMaGUFS3, Apple, Spotify & all the usual pod players pic.twitter.com/oNFnmf6kH4

— Martin Lewis (@MartinSLewis) November 14, 2025

Credit cards also offer numerous benefits as well, such as allowing you to build your credit score and earn rewards when spending. They also provide more consumer protection when spending.

Lewis explained that under Section 75 of the UK's Consumer Credit Act 1974 card companies are liable for purchases made on their services.

"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," he said.

"So if something goes wrong, you can go back to it. On debit cards, you only get charged back."