Overview
- In a new podcast clip reported on January 14, Lewis said most overdrafts charge around 40%, exceeding typical credit card rates of about 24.9%.
- He advised prioritising repayment of overdrafts while making only the minimum payments on credit cards to avoid increasing higher-cost debt.
- He recommended rescheduling direct debits to just before payday to prevent starting the month deeper into an overdraft.
- The warning was set against Confused.com data showing 55% of Britons began 2026 in debt following Christmas spending.
- Coverage outlined arranged versus unarranged overdrafts using NatWest’s definition and noted that sensible use can help credit scores while breaches can harm them.