- More than half of British holidaymakers (57%) used their credit cards to help fund their fun in the sun this year
- A total of £9.7 billion was put on plastic this summer – amounting to an average of £473 per person
- Two in five (42%) of those with holiday debt estimate they’ll still be paying it off in two months or more, leaving millions suffering a summer debt hangover in the run up to ‘spending season’
- Half of all holidaymakers (50%) admit they have used their cards while abroad, despite half (50%) of them not knowing exactly what fees their bank or credit card providers would charge on overseas transactions
- uSwitch.com urges consumers to evaluate their holiday debt and use September to get their get finances under control ahead of the most expensive part of the year.
Over half of British holidaymakers (57%) have relied on credit over the summer to help fund their fun in the sun, racking up substantial debt, according to research from uSwitch.com, the price comparison and switching service. Having put £9.7 billion on plastic this summer to help pay for holidays, consumers are now experiencing a ‘summer fun hangover’ and potentially months of tightened spending.
On average, each holidaymaker put £473 onto their credit card this summer, including flights and accommodation. This summer spending splurge will leave millions of households paying off their debt long into the cold, rainy months, with two in five (42%) taking at least two months to pay it all off.
While abroad, half (50%) chose to put their holiday activities on plastic, despite having no idea what their credit card provider charges them for doing so. This has left many holidaymakers with a bigger bill than they bargained for, as the banks charge an average commission of 2.85% on each overseas transaction and in some instances add on an additional £5 each time the card is used abroad.
With the accumulated interest compounding the issue, uSwitch.com is urging consumers returning home following a summer of spending to evaluate their holiday debt. Then make the most of September to get their get finances under control ahead of the most expensive time of the year.
Tashema Jackson, money expert at uSwitch.com, says: “The summer holidays can be an expensive time of year, and the only way many of us can make it through is to use our credit cards. However, there are consequences and millions of consumers are taking months to pay off their summer debt and won’t have balanced the books long after those days on the beach are but a distant memory.
“If you have returned home feeling the burden of your holiday spending, you don’t have to suffer in silence. For many, sorting out our finances is a once in a year job – however to better stay on top of them, you will find you that if you re-evaluate them every time you have a splurge you will be able to better manage your debt.
“By looking at the options available to you, whether that is using your savings to pay off your debt or switching to a balance transfer credit card, taking the time to consider your finances now could help significantly reduce your outgoings and pay for the expensive months ahead.
“If you are really struggling with your post-holiday debt, speak to your bank and see if they can help, alternatively there are charities such as StepChange, who offer free and impartial advice to help get your debt under control.”
Find out how you could save over £1,000 a year with uSwitch here.