Holidaymakers are flying into debt in order to afford a getaway, according to Clydesdale and Yorkshire Banking Group’s (CYBG) B banking service.
Research conducted by the banking provider found that a third of British holidaymakers find themselves in debt once they return home. CYBG found that, on average, holidaymakers will spend £1,175 on their trip plus a further £118 on pre-trip purchases.
The majority of this is spent on items such as holiday clothing, toiletries and sun cream.
More than half (57%) admitted putting their whole holiday cost on credit, while 53% don’t even save up to pay for flights.
Louise Hodges, head of consumer communications at B, says: “Holidays are something people find very hard to give up, and that’s understandable. The benefit of time away from the office or home is well documented, so getting away should be encouraged.
“What should be kept in mind, however, is the importance of sticking to a budget and not ignoring the reality of how to pay for that break. If, as our research shows, some people are relying on credit to afford household bills due to blowing the budget, there is a risk that all that unwinding on holiday could soon be undone when normal life resumes.”
“Reducing holiday spend doesn’t mean reducing holiday fun. Simple, savvy habits like not getting currency at the airport (as it is invariably more expensive) and making sure your credit card doesn’t charge you on foreign transactions, lead to money-saving with zero impact on the holiday experience.”
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