The government's plans for huge spending cuts could mean massive increases in the cost of overseas holidays unless consumers take action to avoid being stung.
The Daily Telegraph reports that the threat of cuts has forced sterling lower in comparison to other currencies, prompting currency exchangers to recommend prepaid currency cards.
Prepaid currency cards allow travellers to lock in exchange rates to avoid a shock when changing money abroad.
They also mean that holidaymakers do not face the hefty charges often associated with travellers cheques.
You can make sure that you get the best deal on prepaid currency cards by searching our travel money card section here at Compare Prepaid.