Martin Lewis warns overdrafts can cost more than credit cards

Martin Lewis said most overdrafts charge about 40% interest, compared with around 24.9% on a typical credit card.

Martin Lewis has warned millions about the cost of bank account overdrafts. He made the comments on his Martin Lewis Podcast and highlighted a large difference between typical overdraft and credit card rates. He said most overdrafts charge about 40% interest and contrasted this with a typical credit card rate reported as around 24.9%. He also noted that an overdrawn debit card functions as a debt card and that many people misunderstand repayment priorities. Key points: - Martin Lewis said on his podcast that most overdrafts charge about 40% interest. - He contrasted that figure with a typical credit card rate reported as around 24.9%. - He warned that an overdrawn debit card acts as a debt card and that many people often prioritise credit card repayments over clearing overdrafts. Summary: The remarks underline the higher cost of many overdrafts compared with typical credit card rates and note a common misunderstanding about which debts people repay first. Undetermined at this time.