Holiday fever sends quarter of Brits jetting into the red
A new study on holiday spending by CreditExpert.co.uk, the online credit monitoring service from Experian, has revealed that 12 million Brits fall into debt paying for holidays. Ways in which more than a quarter of Brits find themselves in debt are by paying for their holiday using a credit card, taking out a loan or using their overdraft. More than one in 20 go into debt every time they go on holiday.
According to the research, there seems to be a complacent attitude about holiday spending among the credit generation despite recent rises in interest rates and the ever increasing cost of living. For almost a fifth of Brits who fall into debt securing the perfect holiday, they do so as not to disappoint their partner or family and admit that their trips are so important that they push the problems of money further back.
Those most likely to fall into debt securing a holiday are West Midlanders with 26% of the 2,000 adults surveyed. Those in the age range of 18 to 24 are the most relaxed with more than a third admitting that they would think about the money later after the holiday.
Jim Hodgkins, Managing Director of CreditExpert.co.uk, says: “It’s worrying that, as a nation, many of us have a ‘me now, debt later’ attitude to our finances. Most of us work hard and need a well-earned break, but it’s important that we plan ahead and ensure our bank balance can handle the large outgoings that holidays and other expenses entail.
“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.”
By failing to plan ahead many homeowners are finding that they are more likely to fall into debt. A fifth admits that they lose track of their spending on holiday and as a result fall into debt, a further 18% said that they only thought about money and costs after the holiday.
The most likely to get carried away with spending on holiday are those aged 25-34, with almost four in ten admitting this was the cause of their debt. While women are generally thought to be the most likely impulse spenders, this is contradicted by the survey, which shows that those who run up travel debt are more often men with 26% being over enthusiastic when spending on holiday.
Homeowners wishing to consolidate existing debt, whether it’s mounting credit or multiple store card bills before they go on holiday, could look at taking out a secured loan as one of the many options available. A debt consolidation loan could help homeowners place all their debts in one place. Knowing exactly when your one monthly payment will go out will allow homeowners to plan their finances with confidence. As well as making payments more straightforward, a debt consolidation loan could also reduce outgoings by stretching repayments over a term to suit the borrower from 5 to 25 years. Homeowners should remember that repaying your borrowing over a longer term may increase overall interest charges.
Nemo´s typical rate is 8.9% APR variable. A NEMO LOAN IS SECURED ON YOUR HOME. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT. According to the research, there seems to be a complacent attitude about holiday spending among the credit generation despite recent rises in interest rates and the ever increasing cost of living. For almost a fifth of Brits who fall into debt securing the perfect holiday, they do so as not to disappoint their partner or family and admit that their trips are so important that they push the problems of money further back.
Those most likely to fall into debt securing a holiday are West Midlanders with 26% of the 2,000 adults surveyed. Those in the age range of 18 to 24 are the most relaxed with more than a third admitting that they would think about the money later after the holiday.
Jim Hodgkins, Managing Director of CreditExpert.co.uk, says: “It’s worrying that, as a nation, many of us have a ‘me now, debt later’ attitude to our finances. Most of us work hard and need a well-earned break, but it’s important that we plan ahead and ensure our bank balance can handle the large outgoings that holidays and other expenses entail.
“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.”
By failing to plan ahead many homeowners are finding that they are more likely to fall into debt. A fifth admits that they lose track of their spending on holiday and as a result fall into debt, a further 18% said that they only thought about money and costs after the holiday.
The most likely to get carried away with spending on holiday are those aged 25-34, with almost four in ten admitting this was the cause of their debt. While women are generally thought to be the most likely impulse spenders, this is contradicted by the survey, which shows that those who run up travel debt are more often men with 26% being over enthusiastic when spending on holiday.
Homeowners wishing to consolidate existing debt, whether it’s mounting credit or multiple store card bills before they go on holiday, could look at taking out a secured loan as one of the many options available. A debt consolidation loan could help homeowners place all their debts in one place. Knowing exactly when your one monthly payment will go out will allow homeowners to plan their finances with confidence. As well as making payments more straightforward, a debt consolidation loan could also reduce outgoings by stretching repayments over a term to suit the borrower from 5 to 25 years. Homeowners should remember that repaying your borrowing over a longer term may increase overall interest charges.
