Holidays put Brits in debt
June 1, 2007 by admin
Filed under News, News-Banking
Millions of Brits are happy to put themselves in debt in order to go on holiday.
New research shows that as many as 12 million people borrow money in order to take a break abroad and they end up paying for it well after returning.
CreditExpert.co.uk, an online credit monitoring service, carried out research which found that credit cards, loans and overdrafts are the most popular ways of getting together the money for a trip.
Shockingly, six per cent of respondents admitted to going into debt most or every time they go on holiday, with 18 per cent believing that an annual holiday is so important that they do not think about the money until they return.
Once on holiday things do not get any better, with 22 per cent revealing that they lose track of how much they are spending.
“It’s worrying that, as a nation, many of us have a ‘me now, debt later’ attitude to our finances. Most of us work hard and need a well-earned break, but it’s important that we plan ahead and ensure our bank balance can handle the large outgoings that holidays and other expenses entail,” said Jim Hodgkins, managing director at CreditExpert.co.uk.
“Keeping a budget for the cost of the vacation as well as day-to-day holiday expenses will help you avoid going into debt.
“Missed credit repayments are likely to have a negative impact on your credit report, which means lenders may not want to offer you credit in future,” he added.
People aged between 25 and 34 are most likely to lose track of their holiday spending and 37 per cent say that this is the cause of their debt.
