Holidaymakers Go Overboard on Spending
New research has found that almost a third of holiday makers overspent on their last trip abroad. This was largely down to the lack of knowledge holidaymakers have about withdrawing cash overseas, with many lenders charging usage fees.
The study, by N&P (Norwich & Peterborough Building Society), found that one in six people who have been abroad over the last year are exceeding their initial holiday budget by more than 20%.
Those most likely to splash the cash are in the 18-34 age bracket, and 40% of them admit to going overboard on spending on a recent holiday.
"It might seem boring to stick to a budget when you are on holiday, but overspending can mean paying for your annual holiday for months to come,” commented, head of current accounts at N&P, Ewan Edwards.
"Keeping control of costs is important. Over the years people have realised the increase in cost of using a mobile phone abroad and have altered their behaviour to ensure they aren't stung by a massive phone bill when they return home.
The same thinking should apply to the plastic you take on holiday with you.”
Whilst many holidaymakers spend time abroad to relax, they also take a relaxed attitude towards their finances.
Many are unaware of how expensive using a debit or credit card can be overseas which could add a nasty surprise to any statement.
On average, holidaymakers estimate that they would be charged £4.20 in fees to withdraw £250 from an overseas ATM using their debit card, but in reality it can cost nearly three times that at a little under £12.
However, one in ten (9%) happy go lucky holidaymakers actually believe that using a debit card abroad could be free.
Travel money and pre paid cards could be a good alternative to using debit cards whilst away on holiday.