Q: I’ve heard about the new Zebit pre-loaded Mastercards – are they a good idea if I’m a little strapped for cash this Christmas?
A: No! Short-term lender Zebit’s new pre-loaded Mastercard may seem like it’s offering you ‘free’ money at a time when you need it most, but the eventual cost to you could be frightening.
New customers are limited to borrowing up to £800 and this can be repaid over a maximum of seven months.
However, the APR interest is a ridiculous 2,012%, so even if you paid the £800 back after a month, you would be charged £285.50 interest.
My best advice is, as with all payday loans (which is essentially what this is), to avoid at all costs.
If you are struggling to make ends meet this Christmas, open a credit card that offers 0% interest for at least 12 months – such as the M&S Credit Card , which offers a 15-month interest-free period.
And only spend on it what you know you can afford to totally repay by the end of the interest-free period.
Also, make sure you read Savvy Shopper, my money-saving column in Woman’s Own each week and pick up some essential day-to-day money-making and money-saving tips.
Andrea Ventress, money expert
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