One in Five Parents Plummet into Holiday Debt
Whilst the sun is shinning and the weather is sweet, many parents are losing their cool when it comes to financing their summer holiday plans.
New research has found that 18% of parents are worried that entertaining the children for the next 6 weeks will take them into the red.
A price comparison website found that mums and dads across the country are pushing themselves financially in order to keep up with summer activities.
Out of this group, approximately 75% will be using credit cards or overdraft facilities to fund the fun.
Almost a quarter of parents have admitted that they will be taking out a personal loan to cover the cost of family fun days out.
Children have suffered the most during the recession as the cost of childhood treats has increased dramatically over the last three years.
Research by Santander found that chocolate and sweets have risen by 24% since June 2008 and soft drinks have risen by over 16% in the past three years.
It’s not just the cost of confectionary that is pushing parents into the red either. For example, a family of four visiting Legoland could end up paying around £300 if travelling for over 2 hours to get there.
Kevin Mountford, head of banking at moneysupermarket.com, advises parents to explore all their financial options before planning any summer activities,
"For those planning to use their credit card to pay for activities, having the right plastic in their wallet can save them some serious cash this summer.
A product like the M&S Credit Card, which offers zero per cent on purchases for 15 months could be a good option for those shelling out for days out as they can manage their repayments without incurring interest.
There are also a number of reward cards which offer discount on a variety of activities including shopping, petrol and eating out and can help to trim the final cost of family activities."