Holidaymakers hitting their credit cards - Credit cards - News | moneyfacts.co.uk

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Holidaymakers hitting their credit cards

Holidaymakers hitting their credit cards

Category: Credit cards

Updated: 09/07/2010
First Published: 09/07/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Millions of people are willing to get further into debt just to get away this summer.

Almost a third of UK adults going away this year are racking up debt in order to fund their summer holiday, according to a new survey by Bright Grey.

Most of these people intend to pay for their trip by using their credit card, a travel agent payment plan or borrowing cash from friends or family.

Yet over half (58%) admit to not having the money readily available to repay their debtors straight away, increasing the likelihood that they will have to face additional interest payments.

"Getting away on holiday can be a high point of the year for many people, however, with one in three borrowing to pay for their getaway, it is important to make sure they don't end up with a financial holiday hangover on their return," said Roger Edwards, Proposition Director at Bright Grey.

If you are thinking of going on holiday on your credit card, it is important that you weigh up the options available to you.

If you want to pay for your trip using an existing credit card, once the deal is done, it could be worth swapping to a card that offers 0% balance transfers.

Competitive deals are currently available from Virgin Money, BT and the AA, and mean that all the money you pay back during the 0% balance transfer period will be used to pay off your debt, rather than interest.

Alternatively, if you don't already have a credit card, a 0% purchase credit card is likely to be the one for you.

Ideal for making big buck purchases such as holidays, interest free periods of up to 12 months are currently available, meaning you have up to a year to pay back the money you owe from the date your card arrives.

As is the case with 0% balance transfer cards, budgeting properly to make sure you can pay back all or as much of the debt as you can before the offer period ends is vital, as interest rates will rise sharply once the period expires.

Find the best credit card rates - Compare credit cards

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Close