Cost of living: Martin Lewis shares genius ‘credit card in ice bowl’ trick to help pay off debt
The Money Saving Expert founder shared the clever trick on The Martin Lewis Money Show Live as he advised views on paying off credit card debt.
Martin Lewis has shared a genius trick to help you pay off your credit card debt - and all you need is a fridge-freezer, your card and a bowl of water. The Money Saving Expert founder revealed the tip on The Martin Lewis Money Show Live on ITV this week.
Mr Lewis set out the advice during a segment of the show in which he talked about credit card and debt, including about how people can make balance transfers to 0% cards to help clear debt faster. He said that you should not spend on a 0% card and focus instead on clearing debts, leading him to explain the “ice bowl trick”.
The consumer champion told viewers: "Clear your debts in highest interest order first, which for many will be the overdraft. Then, you take all the spare cash you possibly have and you put it at clearing the highest interest rate debts.
“You only pay the minimum on the others. Then when the top one goes, you focus on clearing the next highest and so on. It’s called snowballing and it gets rid of your debts more quickly.
"If you have any savings, use them to clear the debts. If you have an emergency you can always put it back on the card afterwards - you haven’t lost anything. If you’re struggling, tell people you’re in debt, tell people you can’t afford to buy a round.
“And everyone else, let’s not put pressure on people to spend when they don’t have the cash." He went on:"Set up a direct debit to pay at least the minimum. You can pay more, but make sure you’re not missing that.
"Next, make sure you clear the card before the 0% ends or you will pay back the 20-22% rate. If you can’t do that, you need to balance transfer it again. Do not spend on these cards. Do not withdraw cash on these cards, because that is usually not at a cheap rate.
"These cards are only for shifting debt to. And if you really don’t trust yourself, get the card, get a bowl of water.
“Card in the water, bowl in the fridge [freezer], then you’ll need a hammer to spend on the card and it might give you a moment of thinking time."