Money News
12 million Brits go into debt paying for their holidays, according to a new study on holiday spending by CreditExpert.co.uk, the online credit monitoring service from Experian.
More than a quarter (27%) pay on credit, such as a credit card, taking out a loan or using their overdraft, to fund their trips; and 6% say they go into the red most or every time they go on holiday.
Despite recent interest rate rises and the ever-increasing cost of living, there seems to be a relaxed attitude about holiday spending among the credit generation.
18% of Brits whose holidays put them in debt admit that their trips are so important to them they think about the money later. 15% meanwhile succumb to peer pressure to avoid disappointing their partner or family.
The research - based on a survey of 2,000 adults - also reveals that West Midlanders (26%) are the most likely to go into debt from holiday spending; 18-24s are most carefree (38% admitting they'll think about the money later); men (26%) are more likely than women (18%) to get carried away spending when they get to their destination and 9% say they don't intend going into debt, they just lose track.
The bottom line is that keeping a budget for the cost of the vacation as well as day-to-day holiday expenses will help you avoid going into debt. Missed credit repayments are likely to have a negative impact on your credit report, which means lenders may not want to offer you credit in future.
01 June 2007 © Moneyextra.com
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