Debt Management to Help Holiday Spending Abroad

Nearly 20 million Britons are to holiday within the UK this year as vacations abroad become an over-expensive luxury.
That is according to Sainsbury’s Finance, which suggests the number equates to 63 per cent of all UK citizens planning a break this summer.

A total of 19 per cent of UK-bound holidaymakers cited poor finances as the specific reason for vacationing at home.
Those who wish to holiday abroad, but find themselves in a monetary mess could consider seeking debt management advice in order to tidy up their finances.

Sam Marrs, Sainsbury’s Travel Insurance manager, said: “With a significant number of us still intending to get away this summer, holidaymakers are taking a range of measures to reduce their holiday spend, holidaying in the UK instead of abroad being the main one.” The East Midlands has the highest proportion of holidaymakers intent on staying at home, with 76 per cent not planning on leaving home shores this year. Furthermore, in June 2009, The UK Cards Association and ABTA - The Travel Association have issued guidance for consumers on how to manage debt when using credit cards overseas.

Figures from the groups show it would take almost £20 billion to eliminate credit card debt run up through holiday spending made on plastic in 2008. The £19.9 billion total includes spending on debit cards, which may have less of an impact on individuals’ ability to manage debt. However, it does not include the £7.9 billion withdrawn from cash machines by holidaymakers over the course of the year.

More than three per cent of all card transactions made by UK cardholders took place outside of the country in 2008 - reaching 317 million purchases or withdrawals in all. And Sandra Quinn, director of communications at The UK Cards Association, adds that the fees sometimes charged for overseas transactions could make it even harder to eliminate credit card debt on returning to the UK.

The UK Cards Association is a relatively new organisation, having been formed in April as a successor of payment processing group Apacs.