Brits Hit the Plastic to fund Overseas Holidays

A report from Credit Expert has revealed that one in six Britons will turn to their credit cards in order to finance their foreign holiday this summer.

The report revealed that 14% of British holidaymakers would actually use their credit card to pay for their foreign trip as well as relying on their credit cards for purchases for goods and services whilst abroad.

Worryingly, 10% admit to booking their foreign holiday without having the funds in place for spending money. Credit Expert’s personal credit index revealed that before departure, this section of holidaymakers have no idea how they will fund their holiday once at their destination.

Jim Hodgkins, managing director of CreditExpert, said: “ Getting carried away and overspending a little on holiday is something nearly everyone has experienced.

“ But the latest personal credit index reveals a worrying picture of people failing to budget for their holiday costs or plan their repayments, meaning they could be repaying holiday borrowings well up to and beyond the Christmas period.”

This is an alarming trend as many UK credit cardholders continue to build up credit card debt due to being only able to pay the minimum monthly repayments on their credit cards, thus allowing for their card debt to accrue more interest. Having large credit card bills like this in the run up to Christmas can create a strain on already stretched household incomes.

With foreign holidays still a large financial outlay for most families, it’s worrying that one in three Britons that pay for their sunshine break with a credit card, don’t expect to repay the holiday costs loaded onto their credit card by their next statement. One in six estimate that it will take between four to six months to pay off their holiday costs on their card.

A minority of 2% expect to be repaying their credit card holiday bill by the time their next holiday comes around.

With many Britons unable to give up their holidays even when they can’t afford it, the debt accrued is contributing to the UK’s already growing personal debt mountain.

Currently 15 per cent of indebted Britons are not happy with their debt levels, two per cent more than in June.

On the brighter side, more than three in four Britons (76 per cent) are still untroubled by their debt levels, Credit Expert reveals.

Alisdair Milton
15th September 2006

More Information:

• Causes and Cures Of Credit Card Debt
  For some, credit cards can prove a temptation too far, and soon they find themselves in debt. Simple precautions will keep the savvy card holder from such dangers.
• Tips On How British Women Can Climb Out Of Their Growing Credit Card Debt
  More women in the UK are spending money on credit cards than at any other time. In percentage terms, there are now more British women spending more each month than they earn.
• Airmile Credit Cards
  These days most major UK credit card providers offer a vast array of reward programs to try and entice potential new customers to apply for a card. Since the inception of reward packages, one of the most popular packages that applicants go for is airmile credit cards.

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