UK consumers should plan their credit card for holiday season

With the festive season well and truly over, many people in the UK are now thinking about booking their holidays, and for a large number of these holidaymakers one of the essentials that will be taken on holiday with them is the trusty old credit card. However, data has shown that many of us are actually using the wrong credit card when we go abroad, and in many cases we are being charged nearly a hundred pounds in various fees and charges simply for using the credit card to make purchases whilst abroad.

Nearly sixty percent of UK consumers used their credit cards abroad last summer, and credit card use whilst abroad is becoming increasingly popular due to the convenience and the security aspect compared to carrying around cash. However, consumers that use the wrong card could find themselves paying through the nose simply for the privilege of using their own credit card whilst on holiday.

Jeremy Wood, divisional director at Nationwide stated: "Whilst recovering from the big Christmas spend, those planning to go abroad this winter should be aware of the hidden charges that most card providers impose which people can ill-afford at this, or anytime of the year." He also aded that consumers need to start thinking about how they intend to repay the balance on their cards following their holiday.

One expert from Moneysupermarket stated: "You could be left with more than a tan if you don't think about how to handle your debt when you come home. If you are one of the 41 per cent of credit card holders who fail to clear their balance at the end of each month you would be wise to transfer your debt onto one of the 49 zero per cent balance transfer deals available in order to minimise the amount you will pay in interest. You would also be advised to begin saving towards paying off the balance when the zero per cent deal ends."

Alisdair Milton
14th January 2007

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