Martin Lewis credit card warning as he reveals how to beat high interest charges


Martin Lewis has warned people with a credit card to take advantage of a ‘core weapon’ to help beat high interest fees. The financial guru has shared his tips for cutting repayments for those with credit card debts.

He is urging people to check what they are paying before using what he says is a ‘core weapon’ to help manage debts. In the latest MoneySavingExpert.com (MSE) newsletter, he said: “The average credit card interest rate for purchases has jumped four percentage points over the last year.

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“Now it’s a shocking 34.7 per cent (so £347 interest on £1,000 static debt over a year), according to financial information site Moneyfacts. So check what you’re paying now – frankly, if it isn’t 0 per cent, you need to see if you can fight it.

“The core weapon is a balance transfer. That’s when you get a new card that pays off debt on your existing card(s), so you owe it instead but at 0 per cent interest—this means your repayments clear the actual debt, not just mostly cover interest.”

Balance transfer credit cards could be useful if you have debt across a number of different cards or soaring interest rates, The Sun reports. They allow you to move the balance from other cards to a new one.

This means you do not pay interest for a set period, which could make your debt easier to pay off as money saved on interest can be put toward owed finances. It is important to note that you cannot transfer a balance between cards from the same bank.

Use an eligibility calculator before applying for a credit card as each application leaves a mark on your credit file and can affect your credit score. Price comparison websites like MoneySavingExpert’s Cheap Credit Club or Compare the Market can help.

To make an application, you will need to give your name, address, email address and details of your income. You will also need to provide details of how much money you want to transfer to the new card – but this can be done after you have been accepted.

If your application is approved, you will need to transfer the balances within a set period which is usually about 60 or 90 days. Your old balance will be cleared and you can start making interest-free repayments on your new card.



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