New research from uSwitch has discovered that almost two thirds of us overspent this summer, spending on average £491.78 more each.
Overspent on your holidays?
A 0% balance transfer credit card can help you avoid s expensive interest payments on your balance.Compare credit cards
Poor exchange rates made holidays expensive
Nearly half said the plunging pound had pushed up their holiday costs. With everyday items pricier and accommodation bills more than expected.
Many holidaymakers slipped into debt to cover the costs of holidays, with a third using credit cards and one in ten dipping into overdrafts.
Others chose to curb their spending on luxuries with nearly a fifth dining out less, and another 19% buying fewer gifts for friends and family.
Almost half worse off after holidays
Extra holiday debt has squeezed budgets hard, with 46% saying they are now in a worse financial situation than before their holiday.
Of this group, 41% plan to get another credit card and worryingly almost a third are resorting to payday loans to help make ends meet (if you are considering this, read our guide on alternatives to payday loans).
Others are making lifestyle changes to pay off debts – 27% are taking on extra work shifts, while 26% plan to reduce their spending this Christmas.
Holiday debt sticking around until New Year
Despite people’s best efforts, this extra debt will be hanging around for many until the New Year. Those struggling claim it will take an average of four and a half months to clear.
The experience of a pricier holiday has also put many off future summer holidays, with half of holiday makers vowing to delay going on holiday again until it becomes cheaper to buy foreign currency.
Get some post-holiday breathing space
Tashema Jackson, money expert at uSwitch.com, says:
“For those struggling with post-holiday debt, it’s important to not stick your head in the sand.
“Balance transfer cards with an interest-free period could be a lifeline for those needing some breathing space. Those looking to transfer their debt should shop around to find the right card – and remember to carefully consider any transfer fees, as well as the length of the 0% offer.”
Overspent? Could a balance transfer card help?
A 0% balance transfer card allows you to transfer existing card debts to a new card that won’t charge interest for a set period of time, usually in exchange for paying an upfront transfer fee of around 3% of the balance.
Our short video explains how balance transfer cards work.
At the time of writing you can avoid interest on your card debts for as long as 41 months. Read up on the best balance transfer cards for autumn 2016 to find out more.
How much could you save?
Find out how much you could save by transferring your card debts to a balance transfer card with our credit card calculator.