Brits are unable to control their spending whilst they are away on holiday. According to a new report by American Express, 83% may need to seek holiday debt advice as they do not plan a holiday budget. One in three will fritter away their money at the airport on the journey home, just to avoid changing their foreign currency back to the British pound.
Holiday spending traps to look our for include duty free, with 20% of those polled admitting to going over budget to treat themselves to cheaper booze, cigarettes or perfume.
Kirstie Bayley from American Express says: “The last thing people want to do when they go on holiday is worry about money.” This is backed up by the stats, which show that just 17% of holidaymakers will keep to a tight budget abroad. In comparison, 45% said that they would blow their holiday budget in one if they saw something that caught their eye.
Worrying About Holiday Debt?
If you are worrying about getting into further debt whilst you are abroad, then you need to budget and find a way to tighten your purse strings whilst still having a good time! We can offer you some simple but effective debt management tips to help you avoid needing holiday debt advice by ensuring that you do not fall into further debt whilst away:
1: Mobile Phones.
Mobile phones are a great way to keep in touch with the happenings back on British soil and gloat to your nearest and dearest about the glorious weather! But remember that International rates from your mobile provider can often be very expensive, making calls from Europe to the UK can cost you 38p a minute, and outside of Europe you can expect to pay even more. You can also pay up to 40p a text which is almost four times the regular amount!
Check with your mobile phone provider as some do international packages that you can bolt-on to your current contract, helping to save you from any nasty surprises when the phone bill arrives.
2: Shop Around for your Insurance.
Everyone needs to take travel insurance when they go abroad just in case the unexpected happens. However you will find that the price from policy to policy can change dramatically. Best thing to do is to shop around on the Internet and make sure that you check the level of excess you would need to pay in the event of a claim. Sometimes it can be worth paying that little bit extra for increased cover but there are bargains to be had on the Internet!
If you are planning to go away a couple of times or more in a year then it can be more cost-effective to get a annual multi-trip policy.
3: Book Airport Parking in Advance.
Another way that shopping around on the Internet can save you money is the cost of airport parking. Check out the special offers online, and sometimes it can be worth staying at a hotel close to the airport that will let you leave your car there. Best of all, see if you can get a lift to and from the airport, take the train or check local taxi prices as some firms will do you a special rate if you book a return.
4: Your Money Abroad.
Sometimes holiday makers can be financially stung when they least expect it and this damage can be dependant on how you finance your trip whilst you are away. Planning in advance means that you can really save some money:
a) Watch Out for Fees: Although your credit or debit card can be an easy to way pay for things, it can also be expensive. Most card providers add a currency conversion fee of up to 3% and withdrawing from a cash machine can add an extra charge per transaction!
b) Don’t Get Your Currency Last Minute: Shopping around for the best currency exchange rate is the easiest way to make your Sterling go further. However, leaving it until the airport means that it could cost you up to 11% more!