Do not get your fingers burnt

When it comes to getting hold of your cash abroad, things have never been easier. But with so many ways of getting your hands on it many of us get burnt with hidden costs.

MoneyExpert however has some advice on the pros and cons of each of the different methods of accessing cash abroad.

Debit cards

Debit cards are one of the easiest ways to get hold of your cash. As a nation we’re withdrawing £6.4 billion abroad every year as the number of cash machines worldwide shoots up you’ll have to go pretty far off the beaten track not to find one. Compare current accounts now

Pros
o It’s so easy, all you need is your card
o There are a number of providers who won’t charge you anything for withdrawing abroad, Natwest is the largest bank with this policy

Cons
o What happens if you can’t find a cash machine?
o The average charge on withdrawing cash is a £3.67 on a £96 withdrawal

Credit cards

If you’re going to be heading out to lots of restaurants or shops then you don’t really want to have to carry a lot of money on you. Credit cards make sense for this sort of transaction but again you’ll have to pay for the privilege of using them abroad. Compare credit cards today

Pros
o Lower charges than on a debit card
o You can spend without fear of reaching a daily maximum limit, normally of around £300 which is imposed on most debit cards

Cons
o If you’re off to an ‘exotic’ destination which providers associate with credit card fraud then you had better be careful to tell your provider where you are going or you could find your card cut off
o Again there’s the charges issue, which come in at around £2.75 for every £100 you spend

Traveller’s cheques

If you don’t want to rely on electronic payments or searching out a cash-point then traveller’s cheques offer a simple and secure method of getting way of getting your holiday spending money.

Pros
o With a travellers cheque it’s easy to keep track of how much you’re spending
o If you have your possessions stolen so long as you keep the serial numbers of your cheques and Purchase Agreement separately you will be able to reclaim them

Cons
o If you’re short of time you might not want to spend time queuing up in a Bureau de Change
o You’ll need to make sure you’ve got a supply of cash before you leave the country to tide you over for the initial expenses when you arrive
o Be careful to check that the exchange rates are competitive before cashing your cheques in if you want to get the most out of your money

Currency exchange

Taking a trip to the bureau de change before you leave will mean that you shouldn’t have to think about where you’re money is coming from for the rest of the holiday, all you have to worry about is keeping it safe and keeping an eye on your spending.

Pros
o If you do a bit of research you should be able to find an exchange who won’t charge you for exchanging your cash, both the Post Office and Thomson Holidays offer this service, but be sure to check that the exchange rate they offer you is competitive

Cons
o If you run out of money you could be in trouble

Click though to MoneyExpert for money saving tips and hints

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