22 August 2007
People returning from summer holidays should consider paying pay their credit card debt before their suntan fades, the Consumer Credit Counselling Service has advised.
People returning from summer holidays should consider paying pay their credit card debts before their suntan fades, the Consumer Credit Counselling Service has advised.
While on holiday people tend to use their credit cards more to pay for expensive purchases including meals out, excursions and car rental.
However budgeting for these expenses in advance could make a real difference to the ease with which any debt can be paid when holidays are over.
It also helps to avoid mounting interest charges, CCCS explained.
"When you go on holiday you tend to treat yourself to a few more things, you tend to use your credit cards more than you usually would at home," Frances Walker, spokesperson for the CCCS, said.
"But the same things would apply that when you come home you need to make arrangements to repay your credit card…and that should stop you getting into any serious debt."
She added: "Obviously the sensible advice…would be to save for your holidays or save for Christmas or whatever, but often people don't do that.
"It would be better to have a budget and to think what exactly you are going to spend and can you afford it?"
Figures from Credit Action show that consumer debt in the UK increased by £107 billion in the year to the end of June.
The UK is currently responsible for a third of all consumer debt in Europe, with a total borrowing figure of over £1.3 trillion.
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