Many people pay for their car insurance in monthly instalments by direct debit, but the TV presenter and founder of Money Saving Expert says this is an expensive mistake.
Martin said that, if you pay for car insurance monthly by direct debit, it is effectively a loan and you could be paying interest of up to 40% on it - on top of your car insurance bill.
Martin said: "Monthly direct debit is a LOAN - they pay the year for you and loan you the money often at 20% - 40% APR way more than a typical credit card.
Even if you have to pay interest on the credit card payment, that could be cheaper than what the insurance companies are charging you, Martin said.
Martin Lewis frequently says that the trick to using a credit card safely and wisely is to make sure you pay of your bill every month - in full...
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