Older travellers have the know-how to safeguard their holiday spending, according to a new report which reveals that more than half of over-65s buy their holiday using a credit card in order to protect themselves through the Consumer Credit Act.
The GoCompare research showed that 51 per of those aged over 65 usually purchase their holiday using a credit card, compared to just 23% of 18 to 24-year-olds.
A key attraction of using credit cards is that the Consumer Credit Act will cover people who spend between £100 and £30,000 and mean the credit card provider and retailer will have equal liability in refunding the credit card holder.
Although this may not apply to holidays that are bought through a travel agent that is ATOL protected, it helps to avoid financial loss in situations such as a tour operator folding – something that has left thousands of consumers out of pocket in the past.
The savvy credit card spending is not restricted to purchasing the holiday itself, either, as 40% of over-65s say they avoid using ATMs while abroad in order to avoid the withdrawal charges and 61% know exactly what charges and interest rates would apply for using their plastic overseas.
This contrasts with the 30% of 18 to 24-year-olds who believe that there are no fees or charges for using their credit cards abroad and suggests that younger travellers could benefit from looking to their elders for holiday spending advice, said credit card expert Matt Sanders.
“If you’re planning on using a credit card abroad, it’s important to know what you’ll be charged for and where. Withdrawing cash is usually the most expensive way to pay when you’re abroad and it won’t give you the additional protection that paying by plastic does.”
Even when they return home, older travellers are exhibiting financial savviness, with 87% of people in the age group paying off their credit card bills within a month of landing back on UK shores.
Mr Sanders concluded: “The golden rule of using your plastic on holiday is to always repay your balance by direct debit to help reduce any potential interest accrued by your holiday purchases.”
The report follows recent uSwitch research, which revealed that British holidaymakers are set to pay more than £300 million in extra charges this summer for accessing their money and buying essential items while abroad.
According to the study, 12 million people from the UK will use their credit cards while on holiday this year, accumulating some £327 million in fees in the process.