Brits Borrow Money To Fund Summer Holidays
By Alison Steed and Liz King
AROUND 10m Brits have borrowed a massive £12 billion to fund their summer holidays this year, with the average holiday spend reaching £1,200.
The figures, revealed through research by protection insurer Bright Grey, show that people are relying on credit cards, travel agent payment plans or borrowing from friends and family to get themselves away for a summer break.
One in 10 borrowers will take more than two months to pay off their debt, which could add another £100 to those borrowing the money on a credit card. The average credit card interest rate is currently 18.7 per cent, but you would be able to reduce the amount it costs you if you use a 0 per cent purchase card, transfer the balance to a 0 per cent balance transfer card, or simply get the best value credit card you can from the beginning by using a credit card comparison service.
One in seven Brits will have a holiday each year, regardless of their financial position, or because they feel they need to be seen to be taking a holiday each year by their friends.
Roger Edwards, proposition director at Bright Grey, said: "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. Planning ahead for the future financially can help avoid using expensive emergency measures to cover them for the short-term and also mean that everyone can enjoy the sun without the grey cloud of debt hanging over their heads."
However, it is important to remember how to save money on your holidays if your money is tight. Take a look at the MyMoneyDiva top tips on how to save money on your holiday.
Holiday facts
- The average trip for a Briton overseas is under 10 days.
- It takes 4.3 months for the average holiday to be planned.
- Nearly one fifth of UK adults will be going on a bed and breakfast holiday this year, while nearly one sixth prefer a tailor-made trip.
- Just under another third of UK adults are planning to take their main summer holiday in the UK itself.
- Less than one in ten Britons are currently considering heading outside of Europe this summer
Source: Bright Grey
