DEBT CRISIS HITS HARD
Published
by 'Metro Finance' Newspaper - Written by Jayne Atherton
If you've
run amok in the bazaars, settled the drink bills and raided
the airport shops, you could now be nursing a holiday
hangover of the financial kind. But if the summer has
overheated your bank balance you won't be alone - holidays
are second only to Christmas for racking up credit card
debt.
Money
owed on credit cards has risen to a staggering £21 billion
in the UK. But figures released this month by the Bank of
England show that customers are stacking up fresh debt on
their credit cards faster than at any time in the past three
years.
This news comes as no
surprise to online debt management company
UK Debt 24, which
is often called on to help pick up the pieces after summer
overspending has led to a financial crisis.
The
company has about 20% increase in customers at the end of
the summer when reality sinks in and the bills start
landing on the doormat. It has found that the top five
credit card busters are travel, bills, hotels, entertainment
(including restaurants and bars), holiday clothing and
souvenirs and gifts.
Convenience Costs
UK Debt 24
managing director Colin Duguid says the temptation to
overspend is difficult to resist now that credit cards are
so easy to use abroad. 'It is getting easier to use a credit
card when travelling' he says. 'More and more shops, bars
and restaurants are accepting major credit cards as payment,
and it is much more convenient than dealing with foreign
currency'.
Duguid
says all seems well until after the holiday - when the
monthly credit card statement arrives in the post. 'Most
credit card companies add on a foreign exchange fee for
credit card transactions', he says. But it's not just
spending up big that is the problem - most cash machines
allow users to select English from the language option, so
many holidaymakers opt to get what cash they do need via
costly credit card advances.
'The ease
of access to money leads holidaymakers to go over their
budgets and eat into money intended for other uses', says
Duguid. 'This can cause debt problems - but strict budgeting
and very careful use of credit cards will prevent
overspending'. It may be too late to correct the damage of
this summer's break, but follow these tips for a stress-free
return from next year's holiday.
-
Research the prices of hotels, B&Bs and restaurants you
are visiting.
-
Try to
estimate how much an average day will cost, including
small expenses like bottled water, coffee and entrances
into museums and attractions and stick to it.
-
Decide
ahead of time if you are going to buy presents. With more
people travelling, friends and family may not expect
extravagant gifts.
-
Try to
avoid the restaurants and hotels on the main streets of a
big city. Instead look for the smaller places that may
have a lot more character and cost a lot less.
-
Cut
down on the spending in the run-up to your holiday and try
to put some savings aside for holiday entertainment costs.
-
Remember, you don't have to go abroad for a holiday - why
not holiday in the UK and keep costs down.
Visit
UK Debt 24
at:
www.uk-debt-advisor.co.uk
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