Debit cards are awesome for small everyday stuff: a coffee, a sandwich, that impulse buy of a llama-shaped lamp. You know, things under £100 where protection doesn’t matter. Plus, you avoid any risk of credit card interest on tiny purchases.
But for big-ticket items—like electronics, flights, or a new mattress—use your credit card. And then pay it off immediately. Boom. You get protection, a free loan, and zero interest. It’s like having your cake and eating the financial wizard’s advice too.
If you don’t have a credit card yet, don’t panic. Martin suggests a rewards credit card with no annual fee. Use it for groceries, then pay it off right away. You’ll earn cashback or points while avoiding the debt trap. It’s basically money for nothing, and chicks for free—well, nearly.
The Hidden Fee Trap You Never Knew Existed
Here’s a curveball: some retailers charge a surcharge for using credit cards. Airlines, for instance, often add a 2% fee. In that case, debit might be cheaper. But check first—Martin says always look for the “credit card fee” in tiny print. It’s like finding a spider in your salad—annoying and avoidable.
Another sneaky cost: overseas transactions. Debit cards often charge foreign transaction fees of 2-3%. Some credit cards have zero fees abroad. So if you’re sipping sangria in Spain, use credit. Your wallet will thank you with a little extra tapas money.
Martin Lewis warned against using debit cards that are now becoming
Oh, and one more thing: fraud protection. If your debit card details get stolen, the money is taken from your account immediately. It can take weeks to get it back. With credit, the bank’s money gets stolen—you’re just the middleman. That stress alone is worth the switch.
