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A summer holiday is a yearly must for most of us Brits; however research shows it comes at a price, leaving many consumers paying off credit cards for months on end. Follow our tips on ways to keep the cost of a summer holiday down.
The average adult holidaymaker will take £424 worth of kit including phones, laptops and MP3 players away with them this summer, amounting to about £738 per party AXA research shows.
Of the £7bn worth of belongings we will take away, up to £1.61bn will be completely uninsured as only 77% take out travel insurance to cover these items.
Over a quarter of respondents in a Nectar Credit Card by American Express survey found are planning a main Summer holiday abroad this year and expect to be spending an average of £1,295 in total on flights, accommodation, meals and spending money for the family.
A survey by personal protection insurer Bright Grey also showed 32% of Brits are planning on using a credit card, a travel agent payment plan or to borrow cash from family or friends to fund a holiday – which on average 10% will take in excess of two months to repay.
“Getting away on holiday can be a high point of the year for many people; however with one in three borrowing to pay for their getaway, it is important to make sure they don’t end up with a financial holiday hangover on their return,” said Roger Edwards, Bright Grey proposition director.
“If you go anywhere without adequate insurance, or fail to look after your property carefully outside the home you could find yourself footing a fairly hefty bill to replace it,” said Amanda Edwards, AXA home insurance.
How to Manage you Holiday Spending
Firstly it is important to take out travel insurance when planning your holiday, as a summer break is expensive enough during peak season, without the possibility of having to fork out on additional items, return flights home, or, in the worst case an expensive hospital stay abroad without insurance.
Secondly look around for the right credit card if this is your means of payment, or simply a way of managing your spending while you are abroad. Different banks have deals which are better suited to your needs so do not just take the first one you find.
Lastly, try and budget before you leave so you do not have a shock when you look at your bank balance when you return home.
Compare travel insurance, credit cards or get debt advice on Moneyexpert.com
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